This is a guest post by Linda Claire Puig, my co-counselor for the Pink Spoon Telecamp:
WHY Grow Your List? (Count the Many Ways)
by Linda Claire Puig, president, Claire Communications
List-building tips are all over the Internet these days. You can learn for free (including my Momentum articles from June 30, 2008, and July 10, 2009), you can buy e-books on the topic or you can take high-priced courses.
But are you really clear on WHY it's important to continually focus on growing your list?
When you understand what's possible with a bigger list--not just a bigger list, but a bigger relevant list--you open to new potential...for your business, for your life.
It's
easiest to explain with an example. Let's say you have a list of 200
people that you keep in touch with on a regular basis. (You are sending
a newsletter, aren't you?) You decide to run a $350 group program and
announce it to your list by sending a promotional email. Seven people
sign up and earn you a total of $2,450.
In marketing
circles, those seven new clients represent a very good "conversion
rate" of 3.5%. Conversion rate is the ratio of people who purchase to
the total number of people on your list.
Now let's say
your list grows to 3,000 (still a relatively modest list size), and you
offer the same $350 group program. If your 3.5% conversion rate remains
the same, you will now sign up 105 new members for your group, for a
total earnings of $36,750. You may have to run concurrent groups to
accommodate all the new business, a nice problem to have!
But
even if your conversion rate dropped to 2%, you'd still sign up 60 new
members for your group, for a total of $21,000 in earnings.
So $2,450 vs. $21,000...FOR THE SAME AMOUNT OF PROMOTIONAL EFFORT!
Three important mentions here:
1)
It's NOT all about a having a HUGE list. Smaller lists can be more
responsive than their bigger counterparts. So decide on your income
goals, determine your conversion rate history and let that help you
determine how big you want to grow your list.
2) Don't
forget that while you may attach numbers to your goals, building your
list is ultimately NOT a numbers game. It's about building
relationships with people who you would like the opportunity to serve.
If you approach it this way, you will have a growing list that is
always a relevant list.
3) Your list will not grow just
because you wish it so. You may set a list-building goal for your year,
but you won't meet it unless you take specific, focused action toward
that goal. The very FIRST place to start is to have a great pink spoon...something that addresses a pressing need for your audience that you can give away in exchange for their contact information.
There
are other reasons to grow your list that go way beyond numbers and
dollars. Tell me, how do you help people? What are your gifts? With a
larger list, your influence and your ability to help more people also
grows.
Bottom line: No one is served by your list (or you!) remaining small.
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To
learn more about what makes a great pink spoon, how to use it to grow
your list and generate more business -- and to create your own pink
spoon under the guidance of two marketing communications experts --
please register here for the Pink Spoon Telecamp.