Probably the most untapped and underappreciated investment in the world is building an email list. Some publications have said that email marketing can have a 42x ROI. In my experience, when scaling and promoting affiliate offers, it’s not uncommon to see a $3 return for every $1 you spend on ads. Let’s break down the math on how this investment works.
First, we need to talk about how much money an email list can actually earn you. Let’s say you have an email list with just 100 subscribers. Each week you recommend a new $50 product to your list, and only 1% of your subscribers buy it. That means you would be generating 4 sales a month at $50.. or $200 in total sales.
Now at the Minimum 50% commission, you’re earning $100 per month in profit from a list of just 100 people. That comes to an average of $1 per month in profit from every subscriber on your list. As you can imagine, this is a pretty low estimate, but let’s use this as our ‘worst case’ for lost profits.
The most common way to build an email list is to simply buy subscribers. You can buy them directly or use online ads and a one-page website to collect leads. In most crowds, you’re looking at an average cost of about $2 per lead.
Ok, so we buy leads at $2 and earn $1 per month from each one. That means you’ve broken even on your investment in just 2 months.
In 6 months, you’ve earned $6 per lead, which is a 300% return on your investment. Where else can you see a 3X return on your investment in just 6 months? Certainly not the stock market these days… In real estate, you’re lucky if you see 20% a year. Crypto, you’re likely to lose it all just as fast. And the profits just keep multiplying as you generate more affiliate sales from your list.
600% return in 12 months. After 12 months, you’re earning $12 per subscriber for a 600% return. The only real catch here is that you need to follow through and email new offers to your list every week.
The best part is after all this; you still have the leads! Even if you stopped investing and buying leads, you still have the email list you’ve built. I have lists that are over 5 years old that haven’t added a subscriber in over 3 years, and it still earns me money whenever I send out a promotion. A good email list builds in the right crowd and, with the right connection, will continue to earn you money for as long as you send emails.
This brings us back to the study I mentioned to you earlier. On average businesses are earning 42x their investment in email marketing because you keep earning money over the long term. No other investment in the world has the growth potential this has. Just imagine how fast this business grows when you reinvest your profits every month into buying more leads.
Building an email list is by far the greatest investment in the world.