There is a saying in marketing that ‘the money is in the list’ and this is true to two senses. Firstly, I attended a conference in June where I heard a speaker talking about lists – whether it be an email list or a social media following. It is reported that on average people make $1.60 per month per lead that they have.Therefore if you have an email database of 5,000 people, this should be generating a revenue of $8,000 per month.
So, how can you capitalise on your list? There are two key ways.
1. Repeat business
I get a lot of people speaking to me about how to increase the number of customers that they have. Even strong, established businesses want new customers. However, it is much more profitable to get extra business from the customers that you already have. If you are a service provider it might be about increasing your service offering and giving these customers extra services that compliment the service you already provide. Over time providing these extra services may also mean that you attract new customers.
If you are a supplier of products then it may be about trying to understand what other products your customers want and adding them to your collection or understanding why they aren’t ordering more quantity from you and trying to increase that. It is by far better to increase your existing customers purchasing by 20% than spending time, money and energy trying to attract a new customer.
2. Selling your list
Now this has to be doneverycarefully, because you want to maintain your integrity with your existing clients. However, you can charge people reasonably large amounts of money for you to endorse their product or offer a special offer to your clients on their behalf.
I would never give out the details of the list to a third party, however, you could charge them to do a social media shout out where you endorse their product with a link to the product site. You could email out a special offer that is just for your clients from this third party company or if you have high traffic websites you could charge for banner ads.
It is really important that you can fully endorse the product and that it is something that is valuable and worthwhile to your customers.Otherwise you will lose credibility with your customers. If you are giving them special offers that are valuable to them, and useful then your credibility with them will increase and you may find that you get more repeat business on top of the endorsement fee that you are receiving from them.
Email me directly at email@example.com if you want to talk about how this might apply to your business.