How to Estimate Your Monthly Income Using Your Email List Size
Formulas can help you feel more confident and sane. Remember that high school math test you freaked out about until your teacher told you that you could use a formula sheet?
Well, I use formula’s in my online business too! In fact, it is pretty accurate to be honest.
You ready for this?
The Blogger’s Income Formula
Here it is..
Income = Number of Email Subscribers x .02 x Price of Product
Why “.02”? Because it’s common for about 1-3% of your email list to purchase your products (I took the average – 2%).
Now you could freak out and say “Woah only 2% of my entire list, that’s low”
Or? You could feel motivated because now you KNOW how many email subscribers you need in order to hit your income goals.
So, if you have a $100 product and want to earn $5,000 this month? You now know you’d need about 2,500 subscribers to hit your goal.
If you want to earn $10,000 this month, you’d need 5,000 subscribers.
Makes things a little less scary when you have formulas like this, right?
So how accurate is this formula?
Well, it’s going to vary each month of course as it’s not a perfect science, but for my business it fits pretty closely.
Your product’s price is a huge influence on how much you’ll make. More expensive products can help you make lots of money faster, but you’ll also sacrifice on the conversion rate some.
High priced products see a lower volume of people willing to buy compared to a lower priced product.
They need more time to go through the purchase funnel which is where email comes in huge.
You can warm up customers through email marketing and build up their trust that this product is worth the money.
How to Grow Your Email List:
Use ConvertKit, an email marketing software that helps many top bloggers grow their list size to the thousands.
It’s better than Mailchimp, MailerLite, and Aweber in my opinion.
The reason most of the top bloggers use ConvertKit including myself is because of ConvertKit’s advanced features that can speed up your email growth and make managing your subscribers a whole lot easier.
Here are some bonus resources:
- ConvertKit Made Simple – how to use ConvertKit if you’re brand new to email lists and email marketing software
- How to Start an Email Newsletter – a detailed guide to setting up your autoresponder series that automatically sends new subscribers a series of pre-written emails
- 11 Types of Emails to Send to Your Email List – the best types of emails you should be sending to your list to increase open rates, sell products, and build an engaged audience
P.S. Are you a member of my email newsletter community. I’d love to send you my best tips for building an online business. Or you can enroll in my free 7 day blogging eCourse below.