I had a recent question from a friend that aksed, “How do I know what the value of my list is, money-wise?”
I told him that this is a rule of thumb that is used:
Say you have 250 people on your list (subscribers)…
You mail to your list a targetted offer.
You make $250 in profit/affiliate commissions…
Your subscribers are then valued at $1.00 each. Again this is just an example.
Now that doesn’t mean that it will stay at $1.00 per person, but just gives you an average and an idea. (In theory you could go out and spend 99 cents to generate a new subscriber and still make money, or $1.00 and break even.)
I then told him what I think is the most important thing when thinking about your list:
Remember though, it’s about the relationship you have with your list. You could make more with less people and make less with even more subscribers.*
Always, to the best of your ability, offer quality content to your subscribers. Stay on topic/target as to what they signed up for and last but not least, don’t be scared of unsubscribes, it’s a part of life, don’t take them personal.
* This is a separate topic that is important and I’ll talk about some other time.
