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The	
  6	
  REAL	
  Success	
  Principles	
  Of	
  
Email	
  Marketing	
  
	
  
By	
  David	
  Eisner	
  
	
  
Copyright	
  David	
  Eisner	
  and	
  PAXMAN	
  LLC	
  
Please	
  do	
  not	
  duplicate	
  or	
  distribute	
  without	
  permission.	
  
	
  
	
  
	
  
It’s	
  well	
  known	
  that	
  Email	
  Marketing	
  is	
  one	
  of	
  the	
  most,	
  if	
  not	
  THE	
  most	
  powerful	
  
marketing	
  method	
  available	
  for	
  businesses.	
  If	
  nothing	
  else,	
  the	
  ROI	
  available	
  and	
  the	
  
inherent	
  ease	
  of	
  implementation	
  is	
  enough	
  to	
  justify	
  every	
  single	
  business	
  on	
  the	
  
planet	
  using	
  it.	
  
But	
  what	
  I	
  think	
  is	
  not	
  well	
  known,	
  are	
  the	
  actual	
  elements	
  of	
  it	
  that	
  a	
  business	
  
owner	
  should	
  be	
  focusing	
  on	
  if	
  he	
  or	
  she	
  wants	
  to	
  make	
  more	
  and	
  more	
  money	
  with	
  
it,	
  long-­‐term.	
  	
  
The	
  reason	
  why	
  the	
  “real”	
  leverage	
  points	
  are	
  not	
  clear	
  to	
  the	
  masses	
  is	
  because	
  
there	
  is	
  so	
  much	
  damn	
  noise	
  out	
  there!	
  And	
  the	
  noise	
  is	
  out	
  there	
  for	
  a	
  specific	
  
purpose	
  –	
  to	
  sell	
  you	
  something	
  new.	
  
Listen,	
  regardless	
  of	
  me	
  saying	
  this	
  fact,	
  I’m	
  not	
  here	
  to	
  rampage	
  about	
  anybody	
  else	
  
selling	
  anything.	
  Some	
  of	
  this	
  new	
  stuff	
  is	
  good	
  and	
  can	
  help.	
  AND	
  I’ll	
  be	
  the	
  first	
  one	
  
to	
  admit	
  that	
  I’m	
  not	
  the	
  best	
  business	
  owner	
  or	
  email	
  marketer	
  on	
  the	
  planet	
  –	
  not	
  
even	
  close.	
  
Have	
  I	
  made	
  a	
  lot	
  of	
  money	
  from	
  email?	
  Yes.	
  In	
  fact,	
  the	
  vast	
  majority	
  of	
  my	
  over	
  a	
  
million	
  dollars	
  in	
  online	
  sales	
  has	
  been	
  from	
  sending	
  out	
  emails.	
  But	
  I’ve	
  made	
  my	
  
fair	
  share	
  of	
  mistakes	
  as	
  well.	
  
And	
  in	
  a	
  sense,	
  that’s	
  where	
  I’m	
  able	
  to	
  derive	
  a	
  lot	
  of	
  this	
  information	
  that	
  I’m	
  about	
  
to	
  share	
  with	
  you.	
  Because	
  if	
  you’re	
  smart,	
  every	
  time	
  your	
  business	
  plateaus	
  or	
  
declines,	
  you’ll	
  track	
  WHY.	
  And	
  over	
  the	
  past	
  5	
  years,	
  I’ve	
  watched	
  what	
  I’ve	
  been	
  
doing	
  and	
  a	
  lot	
  has	
  become	
  clear	
  to	
  me	
  about	
  why	
  certain	
  things	
  are	
  working	
  or	
  
failing.	
  Basically,	
  with	
  the	
  ups	
  and	
  downs,	
  I’ve	
  seen	
  some	
  clear	
  patterns.	
  
Additionally,	
  I	
  am	
  a	
  researcher;	
  I	
  study	
  what	
  other	
  people	
  are	
  doing.	
  When	
  someone	
  
makes	
  a	
  $10,000+	
  payday,	
  I	
  try	
  to	
  find	
  out	
  why.	
  When	
  somebody	
  is	
  consistently	
  at	
  
the	
  top	
  of	
  leaderboards,	
  I	
  get	
  on	
  their	
  list.	
  I	
  observe	
  and	
  absorb.	
  
And	
  you	
  want	
  to	
  know	
  something	
  really	
  funny?	
  Not	
  a	
  single	
  person	
  or	
  company	
  
does	
  email	
  marketing	
  exactly	
  the	
  same.	
  They	
  ALL	
  have	
  their	
  own	
  flair	
  and	
  different	
  
ways	
  of	
  doing	
  things.	
  Yet,	
  they	
  all	
  make	
  a	
  great	
  ROI	
  on	
  it.	
  
That	
  should	
  be	
  the	
  first	
  indication	
  of	
  what’s	
  going	
  on	
  here...	
  	
  
See,	
  those	
  people	
  I	
  was	
  talking	
  about,	
  the	
  ones	
  who	
  say	
  “this	
  and	
  that”	
  is	
  the	
  actual	
  
lever	
  of	
  success	
  –	
  they’ll	
  put	
  an	
  emphasis	
  on	
  email	
  copywriting,	
  newsletter	
  style	
  and	
  
format,	
  how	
  many	
  links	
  to	
  place	
  in	
  an	
  email,	
  etc.	
  
But	
  that’s	
  not	
  even	
  close	
  to	
  the	
  extent	
  of	
  it.	
  	
  
The	
  list	
  of	
  what	
  I	
  like	
  to	
  consider,	
  “marginal	
  gain	
  mechanisms”,	
  if	
  they	
  even	
  provide	
  
gains	
  at	
  all,	
  is	
  longer	
  than	
  the	
  list	
  of	
  marketing	
  methods	
  Ryan	
  Deiss	
  has	
  pronounced	
  
dead.	
  
I	
  make	
  jokes.	
  
But	
  seriously…	
  Ryan	
  is	
  obviously	
  one	
  of	
  the	
  greatest	
  internet	
  marketers	
  ever.	
  Shear	
  
genius	
  what	
  this	
  guy	
  comes	
  up	
  with	
  and	
  puts	
  out.	
  Actually,	
  one	
  his	
  products	
  was	
  “13	
  
Sneaky	
  Little	
  Email	
  Marketing	
  Tricks”.	
  	
  
And	
  if	
  you	
  look	
  at	
  the	
  majority	
  of	
  those	
  13	
  tricks,	
  they	
  all	
  provide	
  those	
  “marginal	
  
gain	
  mechanisms”	
  I’m	
  talking	
  about.	
  	
  
Guess	
  what?	
  That	
  product	
  sold	
  a	
  lot	
  of	
  copies.	
  	
  
That’s	
  because	
  those	
  mechanisms	
  are	
  sexy.	
  They	
  sell.	
  	
  
And	
  sure,	
  when	
  you	
  combine	
  them	
  all,	
  can	
  you	
  get	
  a	
  great	
  gain?	
  Sure.	
  	
  
There	
  are	
  hundreds	
  of	
  intricacies	
  within	
  Email	
  Marketing…	
  and	
  if	
  you	
  were	
  to	
  find	
  
all	
  the	
  perfect	
  levers	
  and	
  pull	
  them,	
  you	
  can	
  improve	
  your	
  results.	
  
But	
  none	
  of	
  them	
  are	
  really	
  worth	
  focusing	
  on	
  compared	
  to	
  the	
  most	
  important	
  
ones…	
  the	
  ones	
  that	
  if	
  Ryan	
  made	
  a	
  product	
  about	
  them,	
  would	
  probably	
  never	
  sell.	
  	
  
It’s	
  much	
  easier	
  to	
  sell	
  these:	
  	
  
How	
  to	
  get	
  your	
  emails	
  opened,	
  how	
  to	
  improve	
  your	
  deliverability,	
  what	
  font	
  and	
  
size	
  to	
  write	
  your	
  emails	
  in,	
  what	
  auto	
  responder	
  to	
  use,	
  how	
  to	
  get	
  less	
  spam	
  
complaints	
  by	
  controlling	
  the	
  “complaint	
  link”,	
  how	
  to	
  co-­‐reg	
  leads	
  so	
  you	
  get	
  paid	
  
to	
  build	
  your	
  list,	
  how	
  to	
  build	
  3	
  or	
  4	
  different	
  kinds	
  of	
  lists	
  simultaneously…	
  and	
  
the	
  list	
  goes	
  on!	
  
Any	
  of	
  those	
  sound	
  interesting?	
  Well,	
  I’ve	
  sold	
  products	
  on	
  many	
  of	
  them	
  or	
  
included	
  information	
  about	
  almost	
  all	
  of	
  them	
  inside	
  of	
  my	
  email	
  marketing	
  
trainings.	
  
But	
  those	
  are	
  all	
  DETAILS!	
  
That’s	
  NOT	
  where	
  your	
  focus	
  should	
  be	
  if	
  you	
  really	
  want	
  to	
  make	
  the	
  most	
  money	
  
in	
  your	
  business.	
  Man	
  have	
  I	
  learned	
  this	
  the	
  hard	
  way.	
  There’s	
  a	
  lot	
  of	
  wasted	
  time	
  
in	
  a	
  lot	
  of	
  those	
  subjects,	
  especially	
  if	
  you’re	
  a	
  one-­‐man	
  crew,	
  which	
  I	
  was	
  for	
  many	
  
years.	
  
So	
  the	
  question	
  is…	
  what	
  ARE	
  the	
  real	
  success	
  multipliers	
  of	
  email	
  marketing?	
  
It	
  ALL	
  has	
  to	
  do	
  with	
  the	
  quality	
  and	
  number	
  of	
  your	
  leads	
  (email	
  addresses)	
  that	
  
you	
  have	
  permission	
  to	
  send	
  to.	
  
I	
  was	
  reading	
  “The	
  Boron	
  Letters”	
  by	
  Gary	
  and	
  Bond	
  Halbert	
  sometime	
  earlier	
  this	
  
year	
  and	
  what	
  I	
  had	
  intuitively	
  known	
  for	
  years	
  about	
  email	
  started	
  to	
  ring	
  some	
  
major	
  bells	
  in	
  my	
  head.	
  
See,	
  Gary	
  was	
  a	
  direct	
  response	
  genius,	
  right?	
  But	
  for	
  most	
  of	
  his	
  career	
  he	
  didn’t	
  
even	
  deal	
  with	
  email,	
  he	
  dealt	
  with	
  direct	
  mail	
  (snail	
  mail).	
  
And	
  if	
  you	
  want	
  to	
  learn	
  about	
  how	
  to	
  be	
  successful	
  with	
  email,	
  the	
  best	
  people	
  to	
  
learn	
  from	
  all	
  the	
  direct	
  mail	
  people.	
  
Why?	
  Because	
  they	
  spend	
  massive	
  amounts	
  of	
  money	
  to	
  mail	
  advertising	
  pieces	
  to	
  
mailing	
  lists.	
  	
  
That	
  means	
  in	
  order	
  to	
  get	
  a	
  good	
  return	
  without	
  losing	
  their	
  hats,	
  they	
  need	
  to	
  be	
  
100x	
  better	
  than	
  we	
  need	
  to	
  be	
  with	
  email.	
  	
  
Email	
  is	
  far	
  more	
  accessible	
  to	
  the	
  average	
  business	
  owner	
  and	
  marketer	
  because	
  
it’s	
  so	
  cheap	
  and	
  easy	
  to	
  use,	
  and	
  has	
  a	
  very	
  low	
  risk	
  level.	
  Sending	
  1000	
  emails	
  
costs	
  mere	
  cents,	
  while	
  sending	
  1000	
  postcards	
  costs	
  HUNDREDS	
  of	
  dollars!	
  	
  
However,	
  the	
  concept	
  is	
  exactly	
  the	
  same,	
  and	
  this	
  is	
  what	
  you	
  must	
  understand.	
  
All	
  you’re	
  doing	
  with	
  email	
  is	
  finding	
  a	
  way	
  to	
  get	
  back	
  in	
  touch	
  with	
  a	
  “list”	
  of	
  
prospects	
  or	
  customers,	
  right?	
  Direct	
  mail	
  is	
  exactly	
  the	
  same	
  in	
  that	
  regard.	
  
In	
  direct	
  mail,	
  if	
  you	
  don’t	
  own	
  a	
  list,	
  you	
  have	
  to	
  “rent”	
  one.	
  That’s	
  the	
  equivalent	
  of	
  
a	
  “solo	
  ad”	
  in	
  email	
  terminology,	
  right?	
  
It’s	
  obviously	
  cheaper	
  and	
  more	
  powerful	
  in	
  both	
  marketing	
  methods	
  to	
  eventually	
  
build	
  your	
  own	
  list,	
  because	
  then	
  you	
  don’t	
  have	
  to	
  pay	
  for	
  the	
  privilege	
  of	
  getting	
  
eyeballs	
  on	
  your	
  offers,	
  right?	
  
So	
  now	
  that	
  you	
  see	
  the	
  parallels…	
  let’s	
  talk	
  about	
  what	
  Gary	
  had	
  to	
  say…	
  
In	
  the	
  book,	
  Gary	
  talks	
  about	
  the	
  quality	
  of	
  different	
  mailing	
  lists	
  and	
  which	
  ones	
  got	
  
the	
  best	
  response.	
  I	
  mean,	
  to	
  mail	
  1000	
  people	
  from	
  list	
  ABC	
  costs	
  exactly	
  the	
  same	
  
as	
  list	
  XYZ…	
  so	
  it	
  makes	
  the	
  most	
  sense	
  to	
  mail	
  the	
  list	
  that’s	
  going	
  to	
  get	
  the	
  best	
  
response.	
  
In	
  building	
  your	
  email	
  list,	
  you	
  want	
  to	
  abide	
  by	
  the	
  same	
  principles.	
  
	
  
Success	
  Principle	
  #1:	
  “Recent”	
  	
  
If	
  you’ve	
  ever	
  done	
  a	
  product	
  launch	
  and	
  then	
  emailed	
  that	
  list	
  directly	
  after	
  the	
  
launch…	
  and	
  then	
  again	
  a	
  week	
  or	
  month	
  later…	
  there’s	
  a	
  pretty	
  significant	
  drop-­‐off	
  
in	
  response,	
  isn’t	
  there?	
  
That’s	
  just	
  a	
  week	
  or	
  month	
  later!	
  It’s	
  kind	
  of	
  crazy.	
  
The	
  fact	
  is,	
  the	
  more	
  recent	
  somebody	
  has	
  shown	
  interest	
  in	
  a	
  topic,	
  the	
  more	
  
“responsive”	
  they’re	
  going	
  to	
  be	
  towards	
  your	
  future	
  messages.	
  
That	
  obviously	
  doesn’t	
  mean	
  that	
  if	
  you	
  don’t	
  sell	
  them	
  something	
  in	
  the	
  first	
  couple	
  
of	
  weeks,	
  that	
  they	
  will	
  never	
  buy	
  something.	
  
We’re	
  just	
  talking	
  about	
  the	
  “responsiveness”	
  or	
  “power”	
  of	
  your	
  list	
  as	
  a	
  whole,	
  on	
  
average.	
  
Because	
  since	
  emailing	
  people	
  or	
  even	
  storing	
  their	
  addresses	
  is	
  so	
  cheap,	
  it	
  doesn’t	
  
make	
  much	
  sense	
  NOT	
  to	
  send	
  them	
  email	
  years	
  down	
  the	
  line.	
  
In	
  direct	
  mail,	
  that	
  would	
  be	
  a	
  risky	
  proposition	
  because	
  you	
  have	
  to	
  pay	
  big	
  money,	
  
comparatively	
  to	
  send	
  postcards	
  or	
  letters.	
  
But	
  here’s	
  what	
  I	
  want	
  you	
  to	
  take	
  away…	
  
Never	
  ever	
  stop	
  adding	
  fresh	
  prospects	
  and	
  customers	
  to	
  your	
  list.	
  
You	
  must	
  do	
  it	
  consistently,	
  if	
  you	
  want	
  to	
  keep	
  your	
  opens,	
  clicks,	
  and	
  sales	
  
consistent.	
  
Sure,	
  if	
  you	
  build	
  your	
  list	
  this	
  year,	
  you	
  can	
  still	
  make	
  significant	
  sales	
  from	
  that	
  
very	
  list	
  years	
  down	
  the	
  line…	
  
But	
  it	
  WILL	
  fade.	
  I	
  am	
  tempted	
  to	
  go	
  as	
  far	
  as	
  to	
  say,	
  “it	
  is	
  law”	
  because	
  I	
  would	
  be	
  
shocked	
  to	
  find	
  a	
  business	
  owner	
  out	
  there	
  whose	
  email	
  list	
  is	
  just	
  as	
  spry	
  as	
  the	
  day	
  
they	
  built	
  it.	
  
That’s	
  because	
  people	
  change	
  interests.	
  They	
  unsubscribe.	
  They	
  get	
  distracted.	
  It	
  all	
  
happens.	
  And	
  obviously	
  there	
  are	
  also	
  technical	
  reasons	
  like	
  hitting	
  spam	
  boxes	
  that	
  
decrease	
  response.	
  
Here,	
  let’s	
  crunch	
  some	
  numbers	
  to	
  see	
  how	
  important	
  this	
  is.	
  This	
  is	
  what	
  I	
  believe	
  
looks	
  like	
  a	
  likely	
  scenario	
  in	
  email	
  marketing	
  today:	
  
Let’s	
  say	
  for	
  every	
  new	
  1,000	
  subscribers	
  you	
  can	
  generate…	
  
300	
  clicks	
  on	
  the	
  first	
  email	
  
200	
  clicks	
  on	
  the	
  second	
  email	
  
150	
  clicks	
  on	
  the	
  third	
  email	
  
And	
  it	
  goes	
  down	
  5	
  clicks	
  for	
  every	
  email	
  after	
  that	
  and	
  levels	
  out	
  at	
  30	
  clicks	
  (3%	
  
CTR)	
  after	
  3-­‐6	
  months	
  and	
  20	
  clicks	
  (2%	
  CTR)	
  after	
  6-­‐12	
  months.	
  	
  
(Some	
  people	
  will	
  do	
  better	
  or	
  worse	
  than	
  this	
  based	
  on	
  many	
  factors	
  –	
  it’s	
  just	
  an	
  
estimate	
  for	
  illustration.)	
  
In	
  this	
  example,	
  after	
  27	
  emails,	
  you’ll	
  be	
  generating	
  30	
  clicks	
  per	
  email	
  from	
  1,000	
  
subscribers.	
  
Even	
  if	
  you	
  applied	
  the	
  best	
  email	
  hack	
  in	
  the	
  world	
  and	
  quadrupled	
  your	
  response	
  
off	
  of	
  that,	
  you	
  would	
  still	
  only	
  get	
  to	
  120	
  clicks	
  after	
  the	
  27th	
  email.	
  	
  
On	
  the	
  other	
  hand,	
  if	
  you	
  just	
  got	
  1,000	
  new	
  subscribers,	
  you	
  would	
  instantly	
  add	
  
300	
  clicks.	
  
Basically	
  what	
  I’m	
  saying	
  is…	
  people	
  will	
  sell	
  all	
  kinds	
  of	
  “list	
  resurrection”	
  
techniques,	
  but	
  to	
  this	
  day,	
  nobody	
  has	
  shown	
  me	
  definitive	
  evidence	
  that	
  they	
  can	
  
get	
  anywhere	
  close	
  to	
  the	
  results	
  of	
  adding	
  fresh	
  subscribers	
  who	
  are	
  showing	
  
TODAY	
  that	
  they	
  have	
  an	
  interest	
  in	
  what	
  you	
  have	
  to	
  offer.	
  
	
  
Success	
  Principle	
  #2:	
  “Buyers”	
  
This	
  is	
  yet	
  another	
  type	
  of	
  list	
  that	
  Gary	
  Halbert	
  said	
  he	
  would	
  rent	
  –	
  people	
  who	
  are	
  
proven	
  “buyers”	
  of	
  a	
  product	
  in	
  the	
  niche.	
  
Why?	
  Because	
  some	
  people	
  have	
  enough	
  desire	
  and	
  means	
  to	
  lay	
  down	
  some	
  dough	
  
and	
  some	
  don’t.	
  It’s	
  often	
  as	
  simple	
  as	
  that.	
  And	
  selling	
  to	
  those	
  that	
  do,	
  well,	
  that	
  
just	
  makes	
  your	
  job	
  about	
  10x	
  easier.	
  
I	
  say	
  10x	
  because	
  that’s	
  about	
  what	
  you	
  should	
  expect	
  is	
  the	
  relative	
  response	
  
difference	
  from	
  non-­‐buyers	
  to	
  buyers.	
  	
  	
  
Meaning,	
  if	
  my	
  average	
  lifetime	
  subscriber	
  value	
  (ALSV	
  from	
  here	
  forward)	
  of	
  a	
  non-­‐
buyer	
  is	
  $1,	
  then	
  I	
  should	
  expect	
  my	
  ALSV	
  of	
  a	
  buyer	
  to	
  be	
  $10.	
  
More	
  than	
  that,	
  once	
  you’ve	
  gotten	
  someone	
  to	
  trust	
  you	
  once	
  and	
  buy	
  your	
  stuff,	
  
they’re	
  definitely	
  more	
  likely	
  to	
  repeat	
  the	
  process.	
  That	
  means	
  immediately	
  and	
  
long-­‐term.	
  
If	
  they’ve	
  only	
  opted	
  in,	
  the	
  chances	
  that	
  they’ve	
  even	
  consumed	
  the	
  product	
  that	
  
they	
  got	
  for	
  free	
  is	
  significantly	
  lower	
  than	
  if	
  they	
  would	
  have	
  bought	
  it.	
  And	
  if	
  they	
  
actually	
  consume	
  the	
  product,	
  that	
  bodes	
  well	
  for	
  you	
  because	
  they’ll	
  trust	
  you	
  more	
  
and	
  be	
  more	
  likely	
  to	
  buy	
  from	
  you	
  again	
  (as	
  long	
  your	
  products	
  are	
  good!).	
  
Let’s	
  just	
  say	
  that	
  my	
  10x	
  theory	
  is	
  true.	
  This	
  is	
  what	
  the	
  math	
  might	
  look	
  at	
  when	
  
choosing	
  how	
  to	
  structure	
  your	
  funnel…	
  	
  
	
  
So	
  let’s	
  say	
  you’re	
  building	
  your	
  list…	
  
And	
  your	
  current	
  funnel	
  looks	
  like	
  this:	
  
Free	
  Report	
  (30%	
  conversions)	
  -­‐-­‐>	
  $47	
  buyer	
  (5%	
  Conversions)	
  
On	
  1,000	
  Clicks	
  you	
  would	
  receive:	
  
ALSV	
  of	
  300	
  Opt-­‐ins	
  (minus	
  15	
  sales):	
  $285	
  
15	
  Sales:	
  $705	
  
ALSV	
  of	
  15	
  buyers:	
  $150	
  
Total:	
  $1140	
  
	
  
But	
  let’s	
  say	
  you	
  just	
  restructure	
  the	
  funnel	
  a	
  little	
  bit	
  and	
  sell	
  the	
  initial	
  product	
  for	
  
$1	
  in	
  order	
  to	
  get	
  more	
  people	
  buying	
  instead	
  of	
  opting	
  in…	
  
Note:	
  Your	
  initial	
  offer	
  conversion	
  rate	
  drops	
  but	
  your	
  immediate	
  upsell	
  conversion	
  
rate	
  increases.	
  
So	
  your	
  funnel	
  looks	
  like	
  this	
  instead:	
  
$1	
  Report	
  (10%)	
  -­‐-­‐>	
  $47	
  buyer	
  (10%)	
  
On	
  1,000	
  Clicks	
  you	
  would	
  receive:	
  
100	
  sales	
  @	
  $1:	
  $100	
  
ALSV	
  of	
  100	
  Buyers:	
  $1,000	
  
10	
  sales	
  @	
  $47:	
  $470	
  
Total:	
  $1570	
  
 
In	
  this	
  rudimentary	
  example,	
  the	
  increase	
  is	
  37%	
  over	
  the	
  lifetime	
  of	
  the	
  leads.	
  
Obviously	
  these	
  conversions	
  would	
  have	
  to	
  hold	
  true	
  to	
  support	
  the	
  theory,	
  but	
  the	
  
theory	
  can	
  be	
  tested	
  in	
  this	
  way	
  across	
  any	
  funnel	
  to	
  see	
  if	
  the	
  gains	
  could	
  
potentially	
  be	
  greater	
  by	
  restructuring	
  the	
  funnel	
  to	
  attract	
  more	
  people	
  to	
  buy.	
  
One	
  of	
  the	
  clear	
  tradeoffs	
  in	
  this	
  example	
  is	
  less	
  money	
  immediately	
  in	
  exchange	
  for	
  
greater	
  lifetime	
  lead	
  values	
  -­‐	
  and	
  that	
  is	
  a	
  decision	
  you’ll	
  have	
  to	
  make	
  when	
  
structuring	
  the	
  pricing	
  of	
  your	
  offers.	
  
One	
  more	
  thing	
  that	
  is	
  worth	
  mentioning	
  is	
  the	
  cost	
  of	
  storing	
  or	
  emailing	
  leads.	
  
Over	
  time,	
  it	
  does	
  add	
  up.	
  	
  
For	
  example,	
  the	
  cost	
  of	
  storing	
  10,000	
  leads	
  in	
  the	
  average	
  auto-­‐responder	
  is	
  about	
  
$80/month.	
  For	
  100,000	
  leads,	
  it’s	
  about	
  $550/month,	
  or	
  an	
  extra	
  cost	
  of	
  
$5,640/year.	
  If	
  everything	
  else	
  is	
  equal	
  and	
  the	
  ALSV	
  is	
  truly	
  a	
  10:1	
  response	
  
difference,	
  storing	
  buyer	
  leads	
  is	
  far	
  more	
  cost-­‐effective	
  as	
  well.	
  	
  
	
  
Success	
  Principle	
  #3:	
  “Expensive	
  Buyers”	
  
This	
  is	
  a	
  similar	
  principle	
  to	
  the	
  Buyers	
  principle	
  and	
  has	
  to	
  do	
  with	
  the	
  same	
  
concept	
  –	
  qualification.	
  
If	
  someone	
  has	
  proven	
  that	
  they’ve	
  bought	
  an	
  $1,000	
  product	
  before,	
  then	
  logic	
  
holds	
  that	
  they	
  are	
  physically	
  able	
  and	
  of	
  the	
  mental	
  mindset	
  to	
  possibly	
  spend	
  that	
  
money	
  again.	
  
Whereas	
  someone	
  who	
  has	
  only	
  bought	
  a	
  $7	
  product	
  from	
  you	
  has	
  not	
  proven	
  that.	
  
Does	
  that	
  mean	
  that	
  a	
  buyer	
  of	
  a	
  $7	
  product	
  WON’T	
  buy	
  an	
  $1,000	
  product?	
  
Absolutely	
  not.	
  All	
  it	
  means	
  is	
  that	
  they	
  have	
  not	
  proven	
  to	
  you	
  that	
  they	
  will	
  do	
  so.	
  
I	
  know	
  someone	
  who	
  has	
  13,000	
  buyers	
  on	
  his	
  list,	
  most	
  of	
  whom	
  have	
  spent	
  $5,000	
  
on	
  a	
  course	
  with	
  him.	
  He’s	
  made	
  over	
  $6,000,000	
  promoting	
  other	
  offers	
  to	
  that	
  
very	
  list.	
  	
  
That’s	
  a	
  ALSV	
  of	
  $461.	
  	
  
Granted,	
  this	
  guy	
  is	
  amazing	
  at	
  building	
  a	
  community	
  and	
  is	
  frequently	
  giving	
  his	
  
customers	
  tons	
  of	
  value	
  for	
  the	
  $5,000	
  they	
  spend	
  with	
  him	
  –	
  that	
  is	
  necessary.	
  
But	
  as	
  far	
  as	
  email	
  marketing	
  is	
  concerned,	
  what’s	
  the	
  moral	
  of	
  the	
  story?	
  
ALSV	
  is	
  directly	
  correlated	
  to	
  the	
  amount	
  your	
  buyer	
  lead	
  is	
  qualified	
  at.	
  
In	
  English:	
  If	
  you	
  sell	
  more	
  expensive	
  stuff,	
  you’ll	
  more	
  easily	
  be	
  able	
  to	
  sell	
  more	
  
expensive	
  stuff	
  to	
  your	
  leads	
  later	
  on.	
  
 
Success	
  Principle	
  #4:	
  “Relationship”	
  
This	
  is	
  one	
  of	
  those	
  impossible-­‐to-­‐quantify	
  metrics	
  that	
  people	
  often	
  talk	
  about	
  
when	
  referring	
  to	
  email	
  marketing	
  success.	
  But	
  regardless	
  of	
  its	
  “un-­‐
quantifiableness”,	
  it’s	
  definitely	
  a	
  factor	
  of	
  response.	
  	
  
The	
  person	
  in	
  the	
  spotlight	
  who	
  I’ve	
  seen	
  talk	
  about	
  this	
  the	
  most	
  is	
  Frank	
  Kern.	
  
He’s	
  quoted	
  as	
  saying,	
  “The	
  money	
  is	
  not	
  in	
  the	
  list,	
  it’s	
  in	
  the	
  relationship	
  with	
  the	
  
list.”	
  
Beyond	
  that,	
  he	
  would	
  also	
  say	
  that	
  the	
  response	
  that	
  you	
  get	
  is	
  often	
  based	
  on	
  how	
  
much	
  “good	
  will”	
  you	
  have	
  banked	
  up.	
  	
  
So	
  every	
  time	
  you	
  send	
  out	
  something	
  awesome	
  to	
  your	
  list	
  that	
  they	
  love	
  you	
  for,	
  
you	
  bank	
  some	
  good	
  will.	
  	
  
Then,	
  theoretically,	
  when	
  you	
  promote	
  something	
  to	
  them	
  or	
  try	
  to	
  convince	
  them	
  
to	
  buy	
  something,	
  you	
  “tap	
  into”	
  that	
  bank	
  of	
  good	
  will.	
  	
  
This	
  is	
  presumably	
  why	
  Frank,	
  for	
  many	
  years,	
  was	
  able	
  to	
  waltz	
  into	
  any	
  affiliate	
  
contest	
  and	
  take	
  home	
  6-­‐figure	
  paydays	
  or	
  more	
  with	
  a	
  single	
  email.	
  
Sure	
  it’s	
  easy	
  to	
  pass	
  off	
  Frank’s	
  massive	
  success	
  to	
  how	
  damn	
  suave	
  he	
  is,	
  his	
  
timing	
  into	
  the	
  market,	
  or	
  how	
  huge	
  his	
  list	
  is…	
  but	
  you	
  have	
  to	
  admit,	
  he	
  has	
  a	
  point.	
  
And	
  especially	
  in	
  the	
  last	
  couple	
  of	
  years,	
  he’s	
  truly	
  been	
  walking	
  the	
  walk,	
  so	
  to	
  
speak.	
  
SIDEBAR:	
  I’ve	
  been	
  on	
  his	
  list	
  for	
  YEARS	
  –	
  my	
  entire	
  internet	
  marketing	
  career…	
  he	
  
was	
  one	
  of	
  the	
  first	
  people	
  to	
  teach	
  me	
  about	
  email	
  marketing.	
  And	
  this	
  should	
  say	
  
many	
  things	
  to	
  you,	
  about	
  many	
  points	
  in	
  this	
  article	
  (not	
  just	
  this	
  particular	
  
section)…	
  
I	
  often	
  open	
  and	
  read	
  Franks	
  emails.	
  But	
  it	
  took	
  me	
  about	
  4	
  years	
  to	
  actually	
  buy	
  
something	
  from	
  him.	
  
Why?	
  
Good	
  relationship,	
  learned	
  a	
  lot	
  from	
  him…	
  but	
  he	
  never	
  qualified	
  me	
  as	
  an	
  
expensive	
  buyer	
  –	
  and	
  his	
  products	
  are	
  generally	
  very	
  expensive.	
  
	
  
Success	
  Principle	
  #5:	
  “Relevant	
  and	
  Complimentary”	
  
This	
  one	
  may	
  seem	
  obvious	
  to	
  some	
  people…	
  but	
  it	
  really	
  wasn’t	
  obvious	
  to	
  me	
  for	
  
the	
  first	
  couple	
  of	
  years	
  I	
  was	
  in	
  this	
  business.	
  
When	
  I	
  started,	
  I	
  would	
  mail	
  my	
  list	
  every	
  offer	
  under	
  the	
  sun.	
  I	
  sold	
  products	
  on	
  
email	
  marketing	
  and	
  solo	
  ads…	
  yet	
  I	
  would	
  turn	
  around	
  and	
  sell	
  the	
  latest	
  
“offline/local	
  marketing”	
  moneymaking	
  scheme,	
  even	
  though	
  I	
  never	
  had	
  ANY	
  
interest	
  in	
  selling	
  internet	
  marketing	
  services	
  to	
  local	
  companies.	
  	
  
Totally	
  unrelated,	
  and	
  in	
  no	
  way	
  complimentary	
  to	
  why	
  my	
  list	
  was	
  listening	
  to	
  me	
  
in	
  the	
  first	
  place.	
  
Why	
  did	
  I	
  do	
  it?	
  Well,	
  for	
  the	
  most	
  part,	
  I	
  didn’t	
  know	
  better.	
  I	
  was	
  new	
  to	
  business	
  
in	
  general.	
  I	
  just	
  promoted	
  what	
  looked	
  good	
  and	
  I	
  thought	
  people	
  would	
  buy.	
  It	
  
made	
  me	
  money	
  because	
  there	
  was	
  1/100th	
  of	
  the	
  competition	
  that	
  there	
  is	
  today.	
  
In	
  truth,	
  I’m	
  still	
  guilty	
  of	
  it	
  in	
  smaller	
  ways,	
  because	
  it	
  still	
  makes	
  me	
  money.	
  But	
  at	
  
least	
  these	
  days	
  I	
  discriminate	
  much	
  more	
  and	
  stay	
  within	
  a	
  general	
  border.	
  I’ve	
  
maybe	
  promoted	
  1	
  “offline”	
  offer	
  in	
  2	
  years	
  because	
  I	
  realize	
  just	
  how	
  off	
  base	
  it	
  is	
  
with	
  my	
  constituency.	
  
The	
  only	
  reason	
  I	
  was	
  able	
  to	
  get	
  away	
  with	
  it	
  in	
  the	
  first	
  place	
  is	
  because	
  if	
  you	
  sell	
  
a	
  “Make	
  Money	
  Online”	
  product	
  to	
  someone	
  and	
  put	
  them	
  on	
  your	
  list…	
  there’s	
  a	
  
good	
  chance	
  you	
  can	
  sell	
  them	
  another	
  business	
  opportunity	
  right	
  after	
  that.	
  
There’s	
  a	
  reasonable	
  amount	
  of	
  relevance	
  to	
  that	
  person’s	
  mindset	
  and	
  that’s	
  why	
  it	
  
works.	
  
But	
  not	
  only	
  is	
  that	
  not	
  a	
  good	
  way	
  to	
  do	
  business	
  long-­‐term,	
  nor	
  does	
  it	
  generally	
  
help	
  the	
  person	
  who’s	
  buying	
  the	
  stuff,	
  it’s	
  also	
  a	
  good	
  way	
  to	
  lose	
  loyalty,	
  good	
  will,	
  
and	
  eyeballs	
  on	
  your	
  emails	
  (by	
  crowding	
  that	
  person’s	
  space	
  even	
  more).	
  
Keeping	
  your	
  offers	
  relevant	
  to	
  what	
  the	
  subscriber	
  has	
  shown	
  interest	
  in	
  is	
  one	
  of	
  
the	
  biggest	
  differentiators	
  in	
  response.	
  
You	
  can	
  see	
  it	
  on	
  the	
  leaderboards	
  all	
  the	
  time…	
  
One	
  week	
  “list	
  owner	
  X”	
  who	
  has	
  sold	
  a	
  keyword	
  research	
  software	
  will	
  crush	
  a	
  
huge	
  SEO	
  launch	
  and	
  make	
  5-­‐figures…	
  but	
  then	
  the	
  next	
  week	
  will	
  promote	
  a	
  
copywriting	
  launch	
  and	
  make	
  5	
  sales.	
  	
  
That’s	
  because	
  people	
  who	
  are	
  interested	
  in	
  SEO	
  are	
  rarely	
  interested	
  in	
  creating	
  
great	
  sales	
  copy.	
  
It	
  might	
  be	
  somewhat	
  related,	
  because	
  both	
  topics	
  are	
  in	
  the	
  marketing	
  niche,	
  which	
  
his	
  why	
  he	
  was	
  able	
  to	
  make	
  5	
  sales…	
  but	
  the	
  level	
  of	
  response	
  is	
  based	
  on	
  how	
  well	
  
it	
  complements	
  what	
  the	
  majority	
  of	
  the	
  people	
  on	
  the	
  list	
  are	
  attempting	
  to	
  
accomplish.	
  	
  
If	
  he	
  tried	
  to	
  promote	
  dog	
  training	
  to	
  his	
  SEO	
  list,	
  he’ll	
  probably	
  make	
  no	
  sales,	
  
right?	
  It’s	
  not	
  relevant	
  at	
  all.	
  
If	
  he	
  tried	
  to	
  promote	
  a	
  Wordpress	
  theme	
  that	
  proved	
  to	
  rank	
  sites	
  better,	
  he’d	
  
probably	
  hit	
  the	
  leaderboard	
  again.	
  It’s	
  relevant	
  and	
  complimentary	
  to	
  his	
  keyword	
  
research	
  software.	
  
	
  
Success	
  Principle	
  #6:	
  “Bigger”	
  
Don’t	
  let	
  anybody	
  fool	
  you;	
  when	
  it	
  comes	
  to	
  list	
  size,	
  bigger	
  is	
  better.	
  
That	
  is	
  IF	
  you’re	
  following	
  the	
  first	
  5	
  success	
  principles.	
  
Because	
  every	
  time	
  you	
  hear	
  someone	
  say,	
  “I’ve	
  seen	
  people	
  with	
  a	
  10,000	
  person	
  
lists	
  trump	
  guys	
  with	
  500,000	
  person	
  lists	
  all	
  the	
  time…”	
  
YOU	
  WILL	
  KNOW	
  the	
  difference	
  between	
  those	
  two	
  lists	
  and	
  why	
  the	
  smaller	
  list	
  
trumps	
  the	
  larger	
  one…	
  and	
  it	
  lies	
  in	
  the	
  5	
  previous	
  principles.	
  
One	
  of	
  the	
  things	
  that	
  always	
  attracted	
  me	
  to	
  email	
  marketing	
  is	
  that	
  it’s	
  just	
  about	
  
the	
  easiest	
  marketing	
  method	
  in	
  the	
  world	
  to	
  scale.	
  There	
  is	
  absolutely	
  NO	
  
DOWNSIDE	
  to	
  building	
  your	
  list	
  bigger.	
  The	
  sky	
  is	
  the	
  limit!	
  
If	
  you’re	
  following	
  the	
  first	
  5	
  principles,	
  building	
  your	
  list	
  bigger	
  will	
  only	
  
proportionately	
  increase	
  your	
  results	
  and	
  make	
  you	
  a	
  ton	
  of	
  money.	
  
	
  
Conclusion:	
  
Your	
  perfect	
  email	
  marketing	
  strategy	
  in	
  a	
  few	
  sentences:	
  	
  
Focus	
  on	
  collecting	
  the	
  email	
  addresses	
  of	
  lots	
  of	
  recent	
  buyers	
  of	
  expensive	
  
products	
  of	
  yours,	
  who	
  respect	
  your	
  opinions	
  and	
  are	
  excited	
  for	
  your	
  emails.	
  Mail	
  
them	
  relevant	
  and	
  complimentary	
  content	
  and	
  offers	
  that	
  increase	
  their	
  results	
  and	
  
your	
  level	
  of	
  good	
  will	
  with	
  them.	
  Then	
  scale	
  your	
  list-­‐building	
  efforts	
  as	
  much	
  as	
  
possible.	
  
The	
  other	
  stuff	
  is	
  just	
  marginal	
  gains…	
  just	
  details.	
  
Thanks	
  for	
  reading!	
  
	
  
Author:	
  David	
  Eisner,	
  AKA	
  the	
  Backpack	
  Businessman	
  –	
  go	
  to	
  
http://backpackbusinessman.com	
  for	
  more	
  articles,	
  training,	
  and	
  resources.	
  

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The REAL Success Principles Of Email Marketing

  • 1. The  6  REAL  Success  Principles  Of   Email  Marketing     By  David  Eisner     Copyright  David  Eisner  and  PAXMAN  LLC   Please  do  not  duplicate  or  distribute  without  permission.         It’s  well  known  that  Email  Marketing  is  one  of  the  most,  if  not  THE  most  powerful   marketing  method  available  for  businesses.  If  nothing  else,  the  ROI  available  and  the   inherent  ease  of  implementation  is  enough  to  justify  every  single  business  on  the   planet  using  it.   But  what  I  think  is  not  well  known,  are  the  actual  elements  of  it  that  a  business   owner  should  be  focusing  on  if  he  or  she  wants  to  make  more  and  more  money  with   it,  long-­‐term.     The  reason  why  the  “real”  leverage  points  are  not  clear  to  the  masses  is  because   there  is  so  much  damn  noise  out  there!  And  the  noise  is  out  there  for  a  specific   purpose  –  to  sell  you  something  new.   Listen,  regardless  of  me  saying  this  fact,  I’m  not  here  to  rampage  about  anybody  else   selling  anything.  Some  of  this  new  stuff  is  good  and  can  help.  AND  I’ll  be  the  first  one   to  admit  that  I’m  not  the  best  business  owner  or  email  marketer  on  the  planet  –  not   even  close.   Have  I  made  a  lot  of  money  from  email?  Yes.  In  fact,  the  vast  majority  of  my  over  a   million  dollars  in  online  sales  has  been  from  sending  out  emails.  But  I’ve  made  my   fair  share  of  mistakes  as  well.   And  in  a  sense,  that’s  where  I’m  able  to  derive  a  lot  of  this  information  that  I’m  about   to  share  with  you.  Because  if  you’re  smart,  every  time  your  business  plateaus  or   declines,  you’ll  track  WHY.  And  over  the  past  5  years,  I’ve  watched  what  I’ve  been   doing  and  a  lot  has  become  clear  to  me  about  why  certain  things  are  working  or   failing.  Basically,  with  the  ups  and  downs,  I’ve  seen  some  clear  patterns.  
  • 2. Additionally,  I  am  a  researcher;  I  study  what  other  people  are  doing.  When  someone   makes  a  $10,000+  payday,  I  try  to  find  out  why.  When  somebody  is  consistently  at   the  top  of  leaderboards,  I  get  on  their  list.  I  observe  and  absorb.   And  you  want  to  know  something  really  funny?  Not  a  single  person  or  company   does  email  marketing  exactly  the  same.  They  ALL  have  their  own  flair  and  different   ways  of  doing  things.  Yet,  they  all  make  a  great  ROI  on  it.   That  should  be  the  first  indication  of  what’s  going  on  here...     See,  those  people  I  was  talking  about,  the  ones  who  say  “this  and  that”  is  the  actual   lever  of  success  –  they’ll  put  an  emphasis  on  email  copywriting,  newsletter  style  and   format,  how  many  links  to  place  in  an  email,  etc.   But  that’s  not  even  close  to  the  extent  of  it.     The  list  of  what  I  like  to  consider,  “marginal  gain  mechanisms”,  if  they  even  provide   gains  at  all,  is  longer  than  the  list  of  marketing  methods  Ryan  Deiss  has  pronounced   dead.   I  make  jokes.   But  seriously…  Ryan  is  obviously  one  of  the  greatest  internet  marketers  ever.  Shear   genius  what  this  guy  comes  up  with  and  puts  out.  Actually,  one  his  products  was  “13   Sneaky  Little  Email  Marketing  Tricks”.     And  if  you  look  at  the  majority  of  those  13  tricks,  they  all  provide  those  “marginal   gain  mechanisms”  I’m  talking  about.     Guess  what?  That  product  sold  a  lot  of  copies.     That’s  because  those  mechanisms  are  sexy.  They  sell.     And  sure,  when  you  combine  them  all,  can  you  get  a  great  gain?  Sure.     There  are  hundreds  of  intricacies  within  Email  Marketing…  and  if  you  were  to  find   all  the  perfect  levers  and  pull  them,  you  can  improve  your  results.   But  none  of  them  are  really  worth  focusing  on  compared  to  the  most  important   ones…  the  ones  that  if  Ryan  made  a  product  about  them,  would  probably  never  sell.     It’s  much  easier  to  sell  these:     How  to  get  your  emails  opened,  how  to  improve  your  deliverability,  what  font  and   size  to  write  your  emails  in,  what  auto  responder  to  use,  how  to  get  less  spam   complaints  by  controlling  the  “complaint  link”,  how  to  co-­‐reg  leads  so  you  get  paid   to  build  your  list,  how  to  build  3  or  4  different  kinds  of  lists  simultaneously…  and   the  list  goes  on!  
  • 3. Any  of  those  sound  interesting?  Well,  I’ve  sold  products  on  many  of  them  or   included  information  about  almost  all  of  them  inside  of  my  email  marketing   trainings.   But  those  are  all  DETAILS!   That’s  NOT  where  your  focus  should  be  if  you  really  want  to  make  the  most  money   in  your  business.  Man  have  I  learned  this  the  hard  way.  There’s  a  lot  of  wasted  time   in  a  lot  of  those  subjects,  especially  if  you’re  a  one-­‐man  crew,  which  I  was  for  many   years.   So  the  question  is…  what  ARE  the  real  success  multipliers  of  email  marketing?   It  ALL  has  to  do  with  the  quality  and  number  of  your  leads  (email  addresses)  that   you  have  permission  to  send  to.   I  was  reading  “The  Boron  Letters”  by  Gary  and  Bond  Halbert  sometime  earlier  this   year  and  what  I  had  intuitively  known  for  years  about  email  started  to  ring  some   major  bells  in  my  head.   See,  Gary  was  a  direct  response  genius,  right?  But  for  most  of  his  career  he  didn’t   even  deal  with  email,  he  dealt  with  direct  mail  (snail  mail).   And  if  you  want  to  learn  about  how  to  be  successful  with  email,  the  best  people  to   learn  from  all  the  direct  mail  people.   Why?  Because  they  spend  massive  amounts  of  money  to  mail  advertising  pieces  to   mailing  lists.     That  means  in  order  to  get  a  good  return  without  losing  their  hats,  they  need  to  be   100x  better  than  we  need  to  be  with  email.     Email  is  far  more  accessible  to  the  average  business  owner  and  marketer  because   it’s  so  cheap  and  easy  to  use,  and  has  a  very  low  risk  level.  Sending  1000  emails   costs  mere  cents,  while  sending  1000  postcards  costs  HUNDREDS  of  dollars!     However,  the  concept  is  exactly  the  same,  and  this  is  what  you  must  understand.   All  you’re  doing  with  email  is  finding  a  way  to  get  back  in  touch  with  a  “list”  of   prospects  or  customers,  right?  Direct  mail  is  exactly  the  same  in  that  regard.   In  direct  mail,  if  you  don’t  own  a  list,  you  have  to  “rent”  one.  That’s  the  equivalent  of   a  “solo  ad”  in  email  terminology,  right?   It’s  obviously  cheaper  and  more  powerful  in  both  marketing  methods  to  eventually   build  your  own  list,  because  then  you  don’t  have  to  pay  for  the  privilege  of  getting   eyeballs  on  your  offers,  right?   So  now  that  you  see  the  parallels…  let’s  talk  about  what  Gary  had  to  say…  
  • 4. In  the  book,  Gary  talks  about  the  quality  of  different  mailing  lists  and  which  ones  got   the  best  response.  I  mean,  to  mail  1000  people  from  list  ABC  costs  exactly  the  same   as  list  XYZ…  so  it  makes  the  most  sense  to  mail  the  list  that’s  going  to  get  the  best   response.   In  building  your  email  list,  you  want  to  abide  by  the  same  principles.     Success  Principle  #1:  “Recent”     If  you’ve  ever  done  a  product  launch  and  then  emailed  that  list  directly  after  the   launch…  and  then  again  a  week  or  month  later…  there’s  a  pretty  significant  drop-­‐off   in  response,  isn’t  there?   That’s  just  a  week  or  month  later!  It’s  kind  of  crazy.   The  fact  is,  the  more  recent  somebody  has  shown  interest  in  a  topic,  the  more   “responsive”  they’re  going  to  be  towards  your  future  messages.   That  obviously  doesn’t  mean  that  if  you  don’t  sell  them  something  in  the  first  couple   of  weeks,  that  they  will  never  buy  something.   We’re  just  talking  about  the  “responsiveness”  or  “power”  of  your  list  as  a  whole,  on   average.   Because  since  emailing  people  or  even  storing  their  addresses  is  so  cheap,  it  doesn’t   make  much  sense  NOT  to  send  them  email  years  down  the  line.   In  direct  mail,  that  would  be  a  risky  proposition  because  you  have  to  pay  big  money,   comparatively  to  send  postcards  or  letters.   But  here’s  what  I  want  you  to  take  away…   Never  ever  stop  adding  fresh  prospects  and  customers  to  your  list.   You  must  do  it  consistently,  if  you  want  to  keep  your  opens,  clicks,  and  sales   consistent.   Sure,  if  you  build  your  list  this  year,  you  can  still  make  significant  sales  from  that   very  list  years  down  the  line…   But  it  WILL  fade.  I  am  tempted  to  go  as  far  as  to  say,  “it  is  law”  because  I  would  be   shocked  to  find  a  business  owner  out  there  whose  email  list  is  just  as  spry  as  the  day   they  built  it.   That’s  because  people  change  interests.  They  unsubscribe.  They  get  distracted.  It  all   happens.  And  obviously  there  are  also  technical  reasons  like  hitting  spam  boxes  that   decrease  response.  
  • 5. Here,  let’s  crunch  some  numbers  to  see  how  important  this  is.  This  is  what  I  believe   looks  like  a  likely  scenario  in  email  marketing  today:   Let’s  say  for  every  new  1,000  subscribers  you  can  generate…   300  clicks  on  the  first  email   200  clicks  on  the  second  email   150  clicks  on  the  third  email   And  it  goes  down  5  clicks  for  every  email  after  that  and  levels  out  at  30  clicks  (3%   CTR)  after  3-­‐6  months  and  20  clicks  (2%  CTR)  after  6-­‐12  months.     (Some  people  will  do  better  or  worse  than  this  based  on  many  factors  –  it’s  just  an   estimate  for  illustration.)   In  this  example,  after  27  emails,  you’ll  be  generating  30  clicks  per  email  from  1,000   subscribers.   Even  if  you  applied  the  best  email  hack  in  the  world  and  quadrupled  your  response   off  of  that,  you  would  still  only  get  to  120  clicks  after  the  27th  email.     On  the  other  hand,  if  you  just  got  1,000  new  subscribers,  you  would  instantly  add   300  clicks.   Basically  what  I’m  saying  is…  people  will  sell  all  kinds  of  “list  resurrection”   techniques,  but  to  this  day,  nobody  has  shown  me  definitive  evidence  that  they  can   get  anywhere  close  to  the  results  of  adding  fresh  subscribers  who  are  showing   TODAY  that  they  have  an  interest  in  what  you  have  to  offer.     Success  Principle  #2:  “Buyers”   This  is  yet  another  type  of  list  that  Gary  Halbert  said  he  would  rent  –  people  who  are   proven  “buyers”  of  a  product  in  the  niche.   Why?  Because  some  people  have  enough  desire  and  means  to  lay  down  some  dough   and  some  don’t.  It’s  often  as  simple  as  that.  And  selling  to  those  that  do,  well,  that   just  makes  your  job  about  10x  easier.   I  say  10x  because  that’s  about  what  you  should  expect  is  the  relative  response   difference  from  non-­‐buyers  to  buyers.       Meaning,  if  my  average  lifetime  subscriber  value  (ALSV  from  here  forward)  of  a  non-­‐ buyer  is  $1,  then  I  should  expect  my  ALSV  of  a  buyer  to  be  $10.  
  • 6. More  than  that,  once  you’ve  gotten  someone  to  trust  you  once  and  buy  your  stuff,   they’re  definitely  more  likely  to  repeat  the  process.  That  means  immediately  and   long-­‐term.   If  they’ve  only  opted  in,  the  chances  that  they’ve  even  consumed  the  product  that   they  got  for  free  is  significantly  lower  than  if  they  would  have  bought  it.  And  if  they   actually  consume  the  product,  that  bodes  well  for  you  because  they’ll  trust  you  more   and  be  more  likely  to  buy  from  you  again  (as  long  your  products  are  good!).   Let’s  just  say  that  my  10x  theory  is  true.  This  is  what  the  math  might  look  at  when   choosing  how  to  structure  your  funnel…       So  let’s  say  you’re  building  your  list…   And  your  current  funnel  looks  like  this:   Free  Report  (30%  conversions)  -­‐-­‐>  $47  buyer  (5%  Conversions)   On  1,000  Clicks  you  would  receive:   ALSV  of  300  Opt-­‐ins  (minus  15  sales):  $285   15  Sales:  $705   ALSV  of  15  buyers:  $150   Total:  $1140     But  let’s  say  you  just  restructure  the  funnel  a  little  bit  and  sell  the  initial  product  for   $1  in  order  to  get  more  people  buying  instead  of  opting  in…   Note:  Your  initial  offer  conversion  rate  drops  but  your  immediate  upsell  conversion   rate  increases.   So  your  funnel  looks  like  this  instead:   $1  Report  (10%)  -­‐-­‐>  $47  buyer  (10%)   On  1,000  Clicks  you  would  receive:   100  sales  @  $1:  $100   ALSV  of  100  Buyers:  $1,000   10  sales  @  $47:  $470   Total:  $1570  
  • 7.   In  this  rudimentary  example,  the  increase  is  37%  over  the  lifetime  of  the  leads.   Obviously  these  conversions  would  have  to  hold  true  to  support  the  theory,  but  the   theory  can  be  tested  in  this  way  across  any  funnel  to  see  if  the  gains  could   potentially  be  greater  by  restructuring  the  funnel  to  attract  more  people  to  buy.   One  of  the  clear  tradeoffs  in  this  example  is  less  money  immediately  in  exchange  for   greater  lifetime  lead  values  -­‐  and  that  is  a  decision  you’ll  have  to  make  when   structuring  the  pricing  of  your  offers.   One  more  thing  that  is  worth  mentioning  is  the  cost  of  storing  or  emailing  leads.   Over  time,  it  does  add  up.     For  example,  the  cost  of  storing  10,000  leads  in  the  average  auto-­‐responder  is  about   $80/month.  For  100,000  leads,  it’s  about  $550/month,  or  an  extra  cost  of   $5,640/year.  If  everything  else  is  equal  and  the  ALSV  is  truly  a  10:1  response   difference,  storing  buyer  leads  is  far  more  cost-­‐effective  as  well.       Success  Principle  #3:  “Expensive  Buyers”   This  is  a  similar  principle  to  the  Buyers  principle  and  has  to  do  with  the  same   concept  –  qualification.   If  someone  has  proven  that  they’ve  bought  an  $1,000  product  before,  then  logic   holds  that  they  are  physically  able  and  of  the  mental  mindset  to  possibly  spend  that   money  again.   Whereas  someone  who  has  only  bought  a  $7  product  from  you  has  not  proven  that.   Does  that  mean  that  a  buyer  of  a  $7  product  WON’T  buy  an  $1,000  product?   Absolutely  not.  All  it  means  is  that  they  have  not  proven  to  you  that  they  will  do  so.   I  know  someone  who  has  13,000  buyers  on  his  list,  most  of  whom  have  spent  $5,000   on  a  course  with  him.  He’s  made  over  $6,000,000  promoting  other  offers  to  that   very  list.     That’s  a  ALSV  of  $461.     Granted,  this  guy  is  amazing  at  building  a  community  and  is  frequently  giving  his   customers  tons  of  value  for  the  $5,000  they  spend  with  him  –  that  is  necessary.   But  as  far  as  email  marketing  is  concerned,  what’s  the  moral  of  the  story?   ALSV  is  directly  correlated  to  the  amount  your  buyer  lead  is  qualified  at.   In  English:  If  you  sell  more  expensive  stuff,  you’ll  more  easily  be  able  to  sell  more   expensive  stuff  to  your  leads  later  on.  
  • 8.   Success  Principle  #4:  “Relationship”   This  is  one  of  those  impossible-­‐to-­‐quantify  metrics  that  people  often  talk  about   when  referring  to  email  marketing  success.  But  regardless  of  its  “un-­‐ quantifiableness”,  it’s  definitely  a  factor  of  response.     The  person  in  the  spotlight  who  I’ve  seen  talk  about  this  the  most  is  Frank  Kern.   He’s  quoted  as  saying,  “The  money  is  not  in  the  list,  it’s  in  the  relationship  with  the   list.”   Beyond  that,  he  would  also  say  that  the  response  that  you  get  is  often  based  on  how   much  “good  will”  you  have  banked  up.     So  every  time  you  send  out  something  awesome  to  your  list  that  they  love  you  for,   you  bank  some  good  will.     Then,  theoretically,  when  you  promote  something  to  them  or  try  to  convince  them   to  buy  something,  you  “tap  into”  that  bank  of  good  will.     This  is  presumably  why  Frank,  for  many  years,  was  able  to  waltz  into  any  affiliate   contest  and  take  home  6-­‐figure  paydays  or  more  with  a  single  email.   Sure  it’s  easy  to  pass  off  Frank’s  massive  success  to  how  damn  suave  he  is,  his   timing  into  the  market,  or  how  huge  his  list  is…  but  you  have  to  admit,  he  has  a  point.   And  especially  in  the  last  couple  of  years,  he’s  truly  been  walking  the  walk,  so  to   speak.   SIDEBAR:  I’ve  been  on  his  list  for  YEARS  –  my  entire  internet  marketing  career…  he   was  one  of  the  first  people  to  teach  me  about  email  marketing.  And  this  should  say   many  things  to  you,  about  many  points  in  this  article  (not  just  this  particular   section)…   I  often  open  and  read  Franks  emails.  But  it  took  me  about  4  years  to  actually  buy   something  from  him.   Why?   Good  relationship,  learned  a  lot  from  him…  but  he  never  qualified  me  as  an   expensive  buyer  –  and  his  products  are  generally  very  expensive.     Success  Principle  #5:  “Relevant  and  Complimentary”   This  one  may  seem  obvious  to  some  people…  but  it  really  wasn’t  obvious  to  me  for   the  first  couple  of  years  I  was  in  this  business.  
  • 9. When  I  started,  I  would  mail  my  list  every  offer  under  the  sun.  I  sold  products  on   email  marketing  and  solo  ads…  yet  I  would  turn  around  and  sell  the  latest   “offline/local  marketing”  moneymaking  scheme,  even  though  I  never  had  ANY   interest  in  selling  internet  marketing  services  to  local  companies.     Totally  unrelated,  and  in  no  way  complimentary  to  why  my  list  was  listening  to  me   in  the  first  place.   Why  did  I  do  it?  Well,  for  the  most  part,  I  didn’t  know  better.  I  was  new  to  business   in  general.  I  just  promoted  what  looked  good  and  I  thought  people  would  buy.  It   made  me  money  because  there  was  1/100th  of  the  competition  that  there  is  today.   In  truth,  I’m  still  guilty  of  it  in  smaller  ways,  because  it  still  makes  me  money.  But  at   least  these  days  I  discriminate  much  more  and  stay  within  a  general  border.  I’ve   maybe  promoted  1  “offline”  offer  in  2  years  because  I  realize  just  how  off  base  it  is   with  my  constituency.   The  only  reason  I  was  able  to  get  away  with  it  in  the  first  place  is  because  if  you  sell   a  “Make  Money  Online”  product  to  someone  and  put  them  on  your  list…  there’s  a   good  chance  you  can  sell  them  another  business  opportunity  right  after  that.   There’s  a  reasonable  amount  of  relevance  to  that  person’s  mindset  and  that’s  why  it   works.   But  not  only  is  that  not  a  good  way  to  do  business  long-­‐term,  nor  does  it  generally   help  the  person  who’s  buying  the  stuff,  it’s  also  a  good  way  to  lose  loyalty,  good  will,   and  eyeballs  on  your  emails  (by  crowding  that  person’s  space  even  more).   Keeping  your  offers  relevant  to  what  the  subscriber  has  shown  interest  in  is  one  of   the  biggest  differentiators  in  response.   You  can  see  it  on  the  leaderboards  all  the  time…   One  week  “list  owner  X”  who  has  sold  a  keyword  research  software  will  crush  a   huge  SEO  launch  and  make  5-­‐figures…  but  then  the  next  week  will  promote  a   copywriting  launch  and  make  5  sales.     That’s  because  people  who  are  interested  in  SEO  are  rarely  interested  in  creating   great  sales  copy.   It  might  be  somewhat  related,  because  both  topics  are  in  the  marketing  niche,  which   his  why  he  was  able  to  make  5  sales…  but  the  level  of  response  is  based  on  how  well   it  complements  what  the  majority  of  the  people  on  the  list  are  attempting  to   accomplish.     If  he  tried  to  promote  dog  training  to  his  SEO  list,  he’ll  probably  make  no  sales,   right?  It’s  not  relevant  at  all.  
  • 10. If  he  tried  to  promote  a  Wordpress  theme  that  proved  to  rank  sites  better,  he’d   probably  hit  the  leaderboard  again.  It’s  relevant  and  complimentary  to  his  keyword   research  software.     Success  Principle  #6:  “Bigger”   Don’t  let  anybody  fool  you;  when  it  comes  to  list  size,  bigger  is  better.   That  is  IF  you’re  following  the  first  5  success  principles.   Because  every  time  you  hear  someone  say,  “I’ve  seen  people  with  a  10,000  person   lists  trump  guys  with  500,000  person  lists  all  the  time…”   YOU  WILL  KNOW  the  difference  between  those  two  lists  and  why  the  smaller  list   trumps  the  larger  one…  and  it  lies  in  the  5  previous  principles.   One  of  the  things  that  always  attracted  me  to  email  marketing  is  that  it’s  just  about   the  easiest  marketing  method  in  the  world  to  scale.  There  is  absolutely  NO   DOWNSIDE  to  building  your  list  bigger.  The  sky  is  the  limit!   If  you’re  following  the  first  5  principles,  building  your  list  bigger  will  only   proportionately  increase  your  results  and  make  you  a  ton  of  money.     Conclusion:   Your  perfect  email  marketing  strategy  in  a  few  sentences:     Focus  on  collecting  the  email  addresses  of  lots  of  recent  buyers  of  expensive   products  of  yours,  who  respect  your  opinions  and  are  excited  for  your  emails.  Mail   them  relevant  and  complimentary  content  and  offers  that  increase  their  results  and   your  level  of  good  will  with  them.  Then  scale  your  list-­‐building  efforts  as  much  as   possible.   The  other  stuff  is  just  marginal  gains…  just  details.   Thanks  for  reading!     Author:  David  Eisner,  AKA  the  Backpack  Businessman  –  go  to   http://backpackbusinessman.com  for  more  articles,  training,  and  resources.