Responsive email subscribers are valuable, with the ability to generate monthly cash flow and profits, but they are also worth as much as 40x (yes, forty times!) their monthly revenue history to a digital business buyer. That means even if you are creating subscribers at break-even after 12 months, your business could be gaining as much as 300% more value (equity) each year. That’s pretty cool.
At Earnware, we know most publishers can’t wait one-year for break-even, so we have developed our objectives around the creation of campaigns that can break-even in 1-4 months.
Let’s use a real world example
We have a number of campaigns that generate leads under $1 and fully double-opted-in subscriber registrations at around $2 each. An influential newsletter publisher can generate an average of .50 per month off the fully registered subscribers. In this example, the publisher’s break even would be 4 months.
How can some publishers break much faster?
Technically we can develop a campaign that breaks even in under 1 month pretty much on command. The upside is with one-month break-even a publisher can use an American Express card with an $80,000 spending limit to buy media and pay it off each month. This effectively creates a ONE MILLION dollar annual advertising spend. The downside is that to achieve break-even in one-month, you must try to sell something to your subscriber right away. This will often create much more turnover (unsubscribes) with your list.
Informational newsletter publishers who publish daily and rely on banner ads and random third party promotions for monetization, typically earn .15-.25 per month per responsive subscriber (their active clicker list).
Influential newsletter publishers who publish daily and rely on thoughtfully chosen banner ads, joint-venture promotions, and third party promotions for monetization, typically earn .25-.75 per month per responsive subscriber (their active clicker list).
Authoritative product owners who publish daily and promote their own digital or physical products for monetization, typically earn .50-1.00+ per month per responsive subscriber (their active clicker list).
I hope this helps demystify the economics of subscriber value for you. As always, if you’d like to discuss this topic further, feel free to connect.
Thanks for reading…