If you are buying traffic to build your list, this directly affects you…

It turns out that there are some hidden costs people never look at when buying traffic to build a list.

Every subscriber you get in your list can be turned into money, that’s a fact.

But sometimes, if you don’t do things right you can be losing way more money than what your list is producing.

So right now I’m going to show you a way to test the current profitability of your list, so you can decide if what you’re doing now is good or not.

Let’s say that you know your numbers and you have the ability to convert 40% of the traffic you get into a new subscriber, ok?

So, if you buy 2,500 clicks to your squeeze page and you get 1,000 brand new subscribers.

Depending on the traffic source you choose you’ll pay anywhere $0.35 – $1.00 per click…

But for simplicity’s sake, let’s say you pay $0.50 per click.

That means that you have invested $1,250 to get 1,000 new subscribers, so every subscriber cost you $1.25

Up until this point, everything is fine and dandy…

The problem occurs after you start emailing your list.

Because every time you “blast” your list people unsubscribe…

Leaving you with less reach the next time you email them again.

So, the first question you should ask yourself is: “How many subscribers am I losing every time I send an email?”

Remember that every subscriber cost you $1.25, so if you email your list daily, and you get 40 unsubscribes, then you are losing 50 bucks a day!

Of course, the amount of unsubscribes depend on your list size… and they way you craft your emails.

Now, having unsubscribes comes with the territory and it’s a good thing…

All I’m saying here is that you need to figure out how much is that costing you.

Imagine that you make a $50 profit from every “blast”…

In the scenario I just mentioned you may not be making any money… And that sucks!

Let me add more details so you can get the hang of this concept…

Say that you have an email list of 10k subs…ok?

And that you have a healthy open rate of 5%, and a click-through rate of 1%

That means that you can get 100 clicks from every mailing, right?

And let’s say your EPC (earnings per click) is $0.50

That means that you’re theoretically making $50 per mailing.

The missing part of the equation here is the subscribers’ loss.

It can be $10, $20, or even $50…

But if you haven’t figured that out, you need to because you may be losing money instead of making money every time you “blast your list”

What do you think? Post your comment below, no matter if you agree or disagree.


Lenin Govea
Lenin Govea

Lenin Govea has been online for more than 7 years. After he broke the code of how to make money online he decided to share his thoughts with everyone who needs some piece of advice to get on to the fast track toward financial independence.

    7 replies to "The Hidden Cost Of A Click…"

    • Tomer Grinbaum

      Excellent post buddy. Thank you for your insite

    • JP Drago

      Awesome post Lenin!

    • Thomas Hennessy

      Lenin, this is a Very Nice addition to the metrics equation. Thanks.

    • fernando

      Is my math wrong?
      10,000 list x 5% open = 500 opens
      500 opens x 1% click = 5 clicks
      5 clicks x $0.50 EPC = $2.50 …

      • Lenin Govea

        Thanks for stopping by Fernando

        The CTR is calculated over the amount of people you have in your list not just the ones who open your emails

        Cheers

    • Juan

      great job Lenin….awesome. It would help me a lot. THANKS…

    • Igor Finkel

      Lenin, great post. Very insightful info.

      As per our conversation in Orlando at the JVZoo event this summer I agree with the points you made then and in this post.

      You are truly a master of conversions

      Thank you

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