This means that the bt equation for Jim to use is (Monthly email revenue as a channel divid by number of email subscribers) * Gross Profit = Monthly Net Revenue per Email Subscriber. Monthly net revenue per email subscriber So. Jim this math sells flowers online for $15. A000 a month. He has 5. A000 email subscribers. This means Jim earns $3.00 per month in gross revenue for each of his email subscribers. But Jim only keeps 50% of it. So. A Jim actually earns $1.50 per month for each of his email subscribers.
Infographic on calculating
The value of an email subscriber How to Determine How Much You Can Spend to Acquire an Email Subscriber for Your Ecommerce Email Marketing At whatsapp data its simplt level. A it seems like you can spend $1.50 to acquire an email subscriber for your email e-commerce efforts. This would make sense. A but something is missing. It’s missing 1) How long your email subscribers stay on your list; 2) How quickly you ne to be reimburs. Let’s start with the first qution how long do your subscribers stay on your email list? Some of your subscribers will unsubscribe.
A some people will unsubscribe
A and others may cancel their email altogether. Therefore this math A it’s important to understand how many people disappear from your email list each the best newsletter ideas for your next campaign month. Let’s say 5% of your email subscribers drop out each month. This means that all your subscribers will disappear in 20 months. Therefore. A the LTV of your email subscribers can be timat as $1.50 per email subscriber x 20 months = $30. But most busins can’t wait 20 months to recoup their marketing spend. So you ne to determine how quickly you’ll be reimburs. There are several factors to consider.
But the most important
Factor is this if you have a lot of cash. A you can aero leads afford a longer period than if you have very little. This is the secret of well-fund e-commerce busins. They can afford this math to spend money acquiring email subscribers and customers without neing to see a positive ROI on that subscriber/customer for a long time. But if you’re self-fund. A you’ll ne to be repaid much faster. There’s no exact rule. A but let’s say it’s 3 months if you’re self-fund and 7 months if you have a venture capital invtment. This means Jim should be able to afford to acquire an email subscriber for $4.