How to calculate the value of a new email address
You probably spend a lot of effort to get new email addresses on file, because email is still a fantastic tool for keeping in touch with your audience.
But how much effort – and money – is justified? To know this, you have to calculate the value of a new email address.
To do this, follow these five steps.
1. Identify all the ways you make money from email. That could be …
Ads in the email itself,
Ads on web pages that the email sends people to,
Direct sales
You might have other sources of revenue too, like if you rent your list.
2. For each of these revenue streams, create some basic calculations. For example, let's say you're a subscription publisher and you sell new subscriptions through email. If the value of a new subscription is $500, and every campaign gets a 0.1% conversion rate, then every name on your list is worth 50 cents for each send. That raises the question, how many sends do you get out of a typical email address -- before that address becomes undeliverable.
3. Calculate the approximate life of a new email address.
How long does a new email address last before the person unsubscribes, or the email otherwise becomes undeliverable.
With those three steps you can make a decent estimate of the value of a new email address. But it gets more complicated.
4. Think about different ways you get new emails, and the different types of emails.
Company emails vs. personal emails
Emails you get with a paid transaction vs. emails you get from a free transaction.
Different titles or categories of people behind those addresses.
Some emails come in from different offers
It’s somewhat obvious that each of these groups would have a different value. For example, a business email address that you acquire along with a subscription purchase is probably more valuable than a hotmail address someone gave you to get a free white paper.
But how do you track that? You could use a customer data platform to get close to the right answer, but it’s a pretty big task, which leads to step 5.
5. Avoid Analysis paralysis
The more you think about this question, the more categories and exceptions and caveats you'll discover. If you let it, it will drive you crazy. There are a hundred rabbit holes you can fall into.
You have to get comfortable with the idea that close enough is close enough, and that not all efforts to collect email addresses will result in high-quality names. So if you decide that an email address is worth about $3, adjust your expectations up or down for different efforts.
-
LIVE
Right Side Broadcasting Network
4 hours agoLIVE: President Donald J. Trump Holds a Rally in Harrisburg, PA - 7/31/24
69,207 watching -
LIVE
Glenn Greenwald
1 hour agoHamas Leader's Death Escalates Risk of Wider War; Former CIA Officer Mike DiMino and Civil Liberties Lawyer Jenin Younes on Middle East Developments | SYSTEM UPDATE #308
3,009 watching -
LIVE
The Jimmy Dore Show
1 hour agoGavin Newsom’s Homeless Sweeps Begin in SF! More media LIES About Venezuela! w/ Anya Parampil
12,403 watching -
LIVE
WeAreChange
1 hour agoIsrael Provoking All-Out Islamic Assault... IRAN WAR Globalist Wet Dream Coming??
2,794 watching -
LIVE
The Big Migâ„¢
20 hours agoDied Suddenly with Director Matthew Skow
623 watching -
LIVE
2 MIKES LIVE
2 hours ago2 MIKES LIVE #97 NEWS BREAKDOWN WEDNESDAY with SPECIAL GUEST BROOKE MCGOWAN
428 watching -
LIVE
Michael Feyrer Jr
22 hours agoGet Your Live Streaming Questions Answered! LIVE
72 watching -
1:40:24
SNEAKO
6 hours agoMOROCCO IRL 🇲🇦 - MOIST CRITIKAL QUITS YOUTUBE, YOURRAGE FIGHTS BACK, SNEAKO WINS AGAIN
63.8K68 -
1:34:01
Redacted News
4 hours agoBREAKING! Stunning New Details in Trump Assassination Plot Exposed | Redacted w Clayton Morris
94.7K354 -
2:04:45
Darkhorse Podcast
7 hours agoA Coup Against Merit: The 236th Evolutionary Lens with Bret Weinstein and Heather Heying
61.6K137