At the end of the day, to be profitable in business you need to make sales.
To make sales, you need Traffic!
You have two options:
- Buy your traffic with paid advertising
- Build your own source of free traffic, that you can turn on like a tap whenever you want.
Let’s do some math to show you the difference in cost long-term.
Option 1: COLD TRAFFIC FROM PAID ADS
Typically, it is advised you must spend a minimum of $3,000 – $4,000 per month ongoing. Because if you stop running your ads, your traffic stops.
As an example, if you spent $100 per day (= $3,000 per month) you hopefully get 3,000 people view your website ONCE. But you don’t own the data so you can’t access those people again, unless you pay MORE money to run a retargeting ad to follow them around and keep your brand in front of them. If you spent $20 per day to retarget these people, you might be lucky to get in front of 200 people again.
The average sales conversion rate for cold traffic from ads is typically 1% – 2% for an established business and 0.5% for a new business.
Let’s do the math: 3,000 (traffic) x 0.5% (conversion rate) = 15 orders
Frankly, that sucks! So, in other words you’ve just spent $3,000 (minimum) in a month to get approximately 15 orders (if you’re lucky). By the time you take the cost of goods out and the cost of advertising… you are going backwards FAST!
This is not sustainable long-term, you need another plan!
Option 2: WARM TRAFFIC FROM EMAIL MARKETING.
If you invested the same amount of money in a month to acquire 3,000 new subscribers to your email list, you now OWN and CONTROL the data and you can email these people as often as you want.
So, if you emailed daily that would be 30,000 people viewing your website in a month. However, the sales conversion rate for emails is between 5% and 15%. That’s a massive difference!
Let’s do the math: 30,000 (traffic) x 5% (conversion rate) = 1,500 orders
Imagine if your conversion rate was 15%…. that would be 4,500 orders in a month. The possibilities are mind blowing. This higher conversion rate is achievable when you have a well nurtured and engaged email list. I’ll be showing you the inside secrets to this too!
Can you see the power of leverage? It’s a numbers game.
Obviously, this is very simplified and profits depend on your average order value and other factors, but hopefully this gives you a glimpse into the possibility and advantages of email marketing compared with the financially draining alternative of relying soley on paid ads to drive traffic to your website.
More importantly, the process of nurturing your email subscribers allows them to get to KNOW, LIKE and TRUST your brand to become raving fans and repeat customers.
If I had to start my business all over again, and I could only choose ONE method of marketing my business, I would choose email marketing hands-down every time!
Are you ready to come on the journey with me to start, grow and accelerate your email list?
If the answer is YES, then click on the WAITLIST button at the top and I’ll send you some more information to keep you in the loop.