Another Way To Evaluate The Value of Your Email List Membership
By Christopher Knight
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Let's say your ezine goes out twice a month and you allow 3 advertisers:
- (1) top ad at $50CPM
- (1) middle ad at $35CPM and
- (1) end of your Ezine ad at $35CPM.
When you are sold out -- for every 1,000 list members you have, you will bring in ($50+$35+$35 X 2)= $240 per month. This means you could earn ($240 X 12 months in a year)= $2,880 annually PER 1,000 members.
If you take $2,880 and divide that into 1,000 list members, that means that each email list member is worth $2.88 annually.
Using this example, you can see that you can easily make money by paying up to $2.88 to acquire new subscribers for your free newsletter in order to break even from a gross sales perspective...assuming your 3 ads are sold-out on a consistent basis!
Previously, I had said that almost any list member is worth $1 per member. Now I am saying that is still true overall, but if your list is advertiser revenue based -- your list members value can be determined as a component of how much revenue your list pulls annually.
This Ezine-Tip was submitted By Christopher Knight -- Email List Marketing Expert, author and entrepreneur.
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Ezine-Tips for August 24, 1998
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