Have you ever heard this statistical target:
“You should be earning $1.00 per month for every subscriber you have on your list”?
I know you’ve probably heard that one..
But is it true?
Or more importantly..
Is it possible? Is it realistic?
The simple answer is: yes.
BUT, you have to understand how that all works out, mathematically speaking.
The deal is, if you have 1,000 people on your contact list, you should be aiming to earn $1,000 per month from that list. And if you have 5,000 people on your list, you should be aiming to earn $5,000 monthly from that list. Simple enough, right?
Actually it’s fairly easy to understand once you know what you have to do. And it’s something you SHOULD be aiming for.
So let’s take a look at how that works, based on what you’re promoting – because it’s based on how much you earn per sale… and it doesn’t matter how many people you have on your list.
We’ll use GlobalNPN’s Director level commission structure for this example.
Let’s assume you have 500 people on your list. So… we want to find out what we need to do to earn $500 per month.
If we earn $25 for each referral, that means we need to make 20 sales, right? 20 X $25 = $500.00
But as I’ve said time and time again, we don’t want to focus on the fact that we need to make 20 sales because for many people that’s an overwhelming thought. We want to focus on percentages instead because it makes more sense and it’s less stressful to work towards. (focusing on sales numbers sucks;)
We need to make 20 sales, and with a list of 500 subscribers, that’s a conversion rate of only 4%!
Now, since we’re talking in percentages, it doesn’t matter what size your list is, the 4% stays the same.
If you have a list of 10,000 subscribers and you want to make $10,000 per month, (and we’re using the GlobalNPN example of earning $25 per sale), the 4% conversion rate is still the same!
So I’ll ask you this:
Which task is easier on your brain, and which sounds more realistic:
- I need to make 20 sales this month
- I need to convert at just 4%.
For me the choice is simple. I’d much rather think about converting 4% than having to count how many actual sales I have to make. Do you agree?
It’s kind of like playing a numbers game as opposed to trying to sell individual products. Yes you’re still selling products, but the thought process is quite different. It makes the results sound a lot more attainable and realistic. It’s a mindset thing.
… Back to earning $1.00 per subscriber..
I guess my point is that it’s actually a very good result to shoot for. Not only does it force you to play the numbers, but it re-enforces the fact that your marketing focus should be on building your list – not on recruiting or selling.
Here’s your assignment: Figure out your target conversion percentage. What will get you to $1.00 per subscriber?
- Geoff Stephen
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