A good rule of thumb is 1-5% of the people on your cultivated email list typically will purchase from you (if you’ve been marketing to them correctly, don’t oversell and you follow my advice below). Many marketing and business coaches state 1-5% as the email conversion rate, and it happens to be what I’ve observed personally as well. Source: JennyShih.com.
You’ve got what’s called a “warm list” when you’ve been regularly communicating with email subscribers who know, like and trust you. If you haven’t emailed your list in 6 months or longer, you’ve got yourself a “cold list.” When you have a cold list, you can expect a number of people to unsubscribe whenever you begin emailing them again, not to mention often a bunch of bounces from email addresses that have changed. It goes without saying that you aren’t going to get best results if you try to sell to a cold list, and I’ll cover how to warm up your cold list for a launch in another post.
But for now, let’s look at the number of sales that is realistic based on the size of your list.
If you’ve got 500 subscribers on your warm list, you reasonably can expect between 5 and 25 purchases (or subscriber to client conversions).
The numbers mentioned above and below assume you haven’t oversold to your list without adding new subscribers. Also, if your course, product or offer is priced above $999, anticipate the lower conversion rate of 1%.
Now, if you’ve got 100 subscribers on your warm list, you reasonably can expect 1 to 5 people to purchase from you (but don’t be surprised if the number is 0 with a small list). The part that should be clear is that the larger your warm list, the more sales you usually can expect.
However, speaking of 0 sales brings me to my next point, an important caveat to the above.
Test the market first. Don’t sell what your market doesn’t want to buy.
If you want to be successful in your business, woo your subscribers first before showing up with wedding plans. By this I mean: pay attention to them, listen to them, figure out what products or courses or other solutions they want and they need to decide if what you have to offer is a good match.
Test your market before you go whole hog with the selling.
You can have a big email list with lots of warm subscribers and if you don’t follow this advice, your promotional launch can be a big failure.
To avoid a disaster launch in business, offer a trial version of your course, product or solution first.
Many marketing gurus have fancy names for a marketing trial, calling it a “Minimum Viable Product,” a “Beta Test Offer” or “Bite Size Offer.” The basic idea is the same: put together the smallest version or part of your offer possible, and see how that goes first before sinking a lot of your time or money into it. Once you have found people who are hungry for your trial offer, you’ll have more success in developing a larger course, product or other offering around that information.
Are you ready to launch a new offer?
You are ready to launch something that’s brand new for your business when:
- you know the type of person you want to sell to
- you know who benefits from your offer
- you have a good sense about your price point being right for your target audience
- the trial versions of your new offer have pointed towards success.
>>If you need help with email campaigns to test your market or you are ready to launch your new offer, contact me at email@example.com.