Why List Building Is Important Why is list building important anyway? Out of all marketing activities, why does this one get so much attention and is often talked about in reverance? Is it really that important or essential, even?

What List Building Can Do For You – Increased Conversion

There are many ways to look at list building. At it’s most basic, you can see it as a simple tool to increase conversion. Many of us know the mantra “it takes 7 communications/contacts in order to make a sale”. Of course, this isn’t true because you can make some sales immediately!

However, many people do need warming up much more and it can take several contacts to get a sale out of a significant number of prospects. If you only hit them up once then you will never make these potential sales. That’s where list building comes in.

List building lets you make not just seven but potentially infinite contacts (so long as they don’t unsubscribe) over the course of years. Case in point – the other day I made a sale and my tracking statistics told me that the sale came from a click on an email I sent many months ago. Basically, the longer you can hold onto a prospect, the more time you have to make a sale and the higher number of sales overall that you will make i.e. increased conversion.

Traffic And Sales On Tap

In fact, you can get increased conversion simply by running a set of pre-arranged messages (known as follow-ups) for a week or two, let alone for several years. So we know list building can be a great conversion-increasing tool. But what else?

Over time, your follow-up emails after your prospect first subscribes actually becomes far less significant. What becomes more significant are the series of broadcasts that you send over time.

Broadcasts are emails that are sent in realtime to everyone on your list. When you have a list of several thousand, it becomes a simple numbers game.

For example, you may have a list of 50,000 subscribers. You send them an email and 30% open it and click a link inside it i.e. 15,000. These 15,000 are shown a product that you have recommended and 1% of them may buy i.e. 1,500. If the product gives you a commission/earnings of $50 per piece then you have just made $7,500 – all from a single broadcast.

This is what many list owners regard as the real power of a list – the ability to instantaneously create traffic and sales. These same list owners also find that many of the big product creators also hanker after them and try to get them to promote their products in return for a preferable commission. The reason they do this is because they know that list owners can singlehandedly give them an absolutely huge boost in income.

Why List Building Is Important

So let’s return to the original statement. Is list building important? Absolutely. Is it necessary? No, that is not the case. There are many marketers who never build a list and are perfectly happy. However, there are many list owners who rue the fact that they never started building a list from the beginning.

List building is said to give the best ROI on your efforts. Meaning, however much of your time and/or money you invest in marketing, list building tends to give the greatest returns. I think we can agree that it is therefore very, very important.

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