Monday, February 26, 2007

A Quick One

Are you collecting names?

Renting other websites lists... doing a couple Co-Reg deals... up with a PPC campaign?

Good... How do you define success?

With outside list runs... you know you don’t always need to break even with an initial ad placement to be successful, right?

If your boss tells you all ad placements in outside lists must generate sales of 120% of break even... tell him he doesn’t know his head from his... ummm, maybe not.

Try this... explain how it's smarter to strive for an 80% break even with a free offer attached to the paid.

How so?

Remember the money is in the lifetime value of the name not the initial sale.

Let's say an ad placement costs $5,000, and the initial subscriptions equal $4,000. Your gross break even is only 80%. But never fear Mr. Boss Man - we’re not done.

During the list run you also collected 200 free names AND they start getting an e-letter using CVoD methods which produces revenue from those names over the next 3 months equaling an additional $2,000. Combining the two and the final break even is 120%. Everybody's happy.

Why is this a break through for your business?

If you only run to the good lists... the lists that you know you're going to do well on, you'll limit your runs. You will only exposes yourself to the smallest amount of liability BUT you'll only bring in one third the names and revenue that you would otherwise. 80% B/E allows you to be more aggressive and test more lists. This means... more list runs, more names, more revenue.

Oh, and if the boss still doesn't get it... maybe you should start looking for another job, eh?


On a side note... I will be alittle occupied for the next few days... I will try to post Wednesday as usual but tomorrow the stork is bringing us a pink bundle of joy… so I’m not sure how much time I’ll have over the next few days.

It's very exciting… an understatement to be sure.