One mistake many marketers and business owners make is to focus on short-term value, not lifetime value, of each customer (also called Customer Lifetime Value, or CLV). They think it's a success if they make $30 from a $20 ad spending on Facebook Ads or Google AdWords.
What if you can actually make $120 from that $20 you spend on Facebook Ads? Would you do it? How can you achieve that kind of ROI?
Email marketing is probably the best way to achieve that.
Email Marketing Increases Customer Lifetime Value (CLV)
It is estimated by many marketing experts that each email subscriber is worth $1 per month. Using the example earlier, if you can keep the customer you acquire from the $20 you spend on Facebook Ads for 10 years, you can make:
$1 per month x 12 months per year x 10 years = $120
from this customer in the next 10 years.
Still not convinced that email marketing has such power? Let me show you a true case study.
Case Study: $156,000+ in 6 Months by Just Sending 5 Emails
In the following video, I will show you a real email marketing campaign I ran from July to December 2015 that earned me $156,000+ with just 5 emails.
How to Build an Email List and Make Money From It
"Okay, Okay, I am convinced. How do I build an email list fast?" you ask. That would take several books to cover. After building 6 mailing lists with a total subscribers of over 234,000, here are the 4 steps I used to build an email list that generates income for me for the long term:
Step 1: Create a great offer
This can be a PDF report, ebook, newsletter, or a free version of your product. In a way, this is an information product, or infoproduct.
Step 2: Create a killer presentation for your offer
This is usually a squeeze page or sales page where you give away or sell your offer. Buyers would need to enter their email address to receive the offer.
Step 3: Get traffic to your presentation
Now it's time to drive traffic to your offer page. There are many traffic generation methods. My 7 favorite ways to drive traffic are:
I will cover these traffic generation techniques in future blog posts.
Step 4: Follow-up and automate
You should continue to follow up with people who have given their email address for your offer for at least 7 to 10 more times. The longer the better as long as your emails provide value. Automation is critical. You want to design your email sequence so that they learn something new and exciting in each email. And definitely avoid selling products in every single email. You have to provide value.
My Final Two Cents on Email Marketing
After doing email marketing for over 14 years, I'd like to share two additional tips that have worked really well for me.
Don't just copy the next famous email marketer's secrets. Add your own personality and voice. That's why you often you see me talk about my favorite TV show The Walking Dead, and of course my newborn son, Liam. People want to hear from a real, and hopefully fun, person, not some corporate talk from a faceless organization.
Hire a Professional If Needed
Your email copy is as important as your sales page. Crafting great emails is both an art and a science. If you are not an expert, get someone to help you. You can hire someone from sites like Upwork for from $5 to up to a few hundred dollars per hour.
The two tips may seem to contradict each other but they really don't. If you do hire someone, you should either write the first draft, or add your own voice after a completed version from your writer.
Want to get started with email marketing? Get my recommended resources for email marketing.