This document discusses key metrics and strategies for email marketing success. It notes that average email open rates are 15-21%, click-through rates are 3-7%, and conversion rates are 0.01-1.5%. To earn $3,000 in revenue, you need around 1,000 clicks from a list of 22,000 people over 3 emails. Growing a large, targeted list is important for profitability but quality cannot be sacrificed for quantity. The document recommends investing in building a self-liquidating list over several months to achieve sustainable profits from email marketing.
2. SOME STATS
• Email Open Rates: 15% to 21%
• Click Through Rates (CTR) 3% to 7%
• Conversion Rates .01% to 1.5%
3. AVERAGE CART VALUE (ACV)
$50/20 clicks
$500+$250/200
clicks
$1,950+ $750+
$300/780 clicks
1,000 clicks results in $3,000 ACV
4. WHERE THE PROFIT LIES
Per Igor Kheifets:
• Open Rates Vary: 3% to 20%
• CTR 1.5% to 15%
• Healthy List: 10% open rate
• Healthy List: 10% CTR
5. REALISTICALLY
• Assume a conversion rate of 1.5%
• Assume EPC of $3 per every 1,000 clicks
• To earn $3,000, need 1,000 clicks
• 3 email sequence
• 333 clicks per email
• 333/1.5% = 22,200
• To make $3,000, you would have to send 3 emails to a list of
22,200
• Assume 3% conversion, 333/3% =11,100 list
• Assume 9% conversion 333/9%=3,700 list
7. WHY AD TO OFFER DOESN’T PAY
• Assume a 1.5% conversion rate
• Ad cost is $1 per click (CPC)
• 1,000 clicks at 1.5% conversion = I.5 sales
• Assume you are selling a training for $1,000 with a 50%
commission
• You earn $500 per sale
• Under these assumptions, you will spend $1,000 in ad costs to
generate $750 in sales.
• You lose $250
8. CONCLUSIONS
• Need to grow a large list
• Must be targeted to what you are selling
• Any list under 10,000 will not be profitable
• Need to keep cost per lead as low as possible
• Need to manage your list aggressively
9. HOW LONG TO PROFITS?
• Assume $300/month ad spend
• Assume average net cost per lead (CPL) of $.50
• List of 1000 will cost $500 and take 1.7 months
• List of 1000 will likely not produce revenue
• Assume 1.5% CTR, only 15 people will click on your offer
• List of 5,000 will cost $2,500 net over 8.2 months, and
should be generating enough money to cover ad costs
10. FAILURE ANALYSIS
• Not enough money to invest in building a self-liquidating list
• Not educated in traffic sources
• Not educated in building opt-in and bridge pages
• Not educated in copy writing
• Not educated in email campaign structure and duration
• Not patient, persistent, and disciplined
11. THE FASTER YOU CAN GROW A LIST, THE FASTER YOU
CAN MAKE MONEY