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List-Building on Steroids

List-Building on Steroids

“The money is in the list!”
“You have to build your list!”

That’s all the rage in Internet marketing circles these days. Of course, what the top “gurus” are referring to in building your list, is your subscriber list or customer database. The rationale is, the more people you have in your subscriber base, the more money you can make through e-mail campaigns, Ezines and other offers.

I say…Hogwash! Now, before you start to think that maybe my elevator doesn’t go all the way to the top floor, stay with me here!

I’m not implying that you shouldn’t build your list. Of course having a large database of 10 thousand clients or more would be lovely. There are some marketers that may have several lists into the hundreds of thousands or more! But the key is…

Quality vs. Quantity

I just happen to think that the emphasis is in the wrong place. For long-term success, or true wealth you need to concentrate on quality instead of quantity. By quality, I mean the quality of the relationship with that person on your list.

Instead of numbers, think people. Instead of customers, think clients, or friends. Although the definitions are basically the same, the term “client” or “friend” puts you in more of a “help” mindset than a “sales” attitude.

Here’s Why

You may have a database of 10,000 subscribers, but if they aren’t responsive to your offers then you really don’t have a “list” at all. You just have a stack of e-mail addresses!

That sounds kind of like the Yellow-Pages doesn’t it? :-)

For example, let’s say Joy has a base of 1000 responsive, waiting-to-pull-out-their-wallet customers that trust her judgment and recommendations.

Joy may very well pull a response rate of 10-20-30-even 40% or more, depending on the relationship she has with her clients.

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Do you realize that there are some marketers that are in the upper stratosphere in earnings who consistently get, 20-30% response rates and more! And believe me, they can basically write their own paychecks. And they can do it over and over and…you get the picture?

What is Response Rate?

Response rate (or RR) is simply the amount of people that respond to your offer, per 100 offers sent. Let’s do a little simple math. With an RR of 10% and a base of 1000 names, Joy would have 100 responses, or buyers:

10% divided into 1000 = 100.

However, Jay has a base of 10,000 names (10 times more people than Joy) but he’s only getting a 1% RR, because Jay is just concentrating on numbers only. He is actually getting the same number of responses, even though he has a much larger database:

1% of 10,000=100 responses.

Just in case you’re wondering, the industry average RR is right around 1-3%. Yup, for every 100 (cold) offers that you send out, whether by e-mail, snail mail, phone-call, fliers, etc. you can realistically expect a whopping 1-3 people to respond. Those numbers are part of the reason why up to 95% of all web businesses fold after less than 5 years!

If you happen to have a huge database and you’re only getting a 1-3% response rate, sure you may make a few bucks now, but your business isn’t as efficient as it could be and thus not as profitable in the long run.

Treat your customers like gold, and I guarantee your response rates will soar!

Ambrose Avery is a Certified Life-Coach, author and Internet Marketer. For more list-building tips, tools, and resources check out,

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