When to monetize your list

Out of curiosity, I asked Perplexity this question to see what the received wisdom is on the internet. It came back with the following:

It’s not a bad place to start - but it only tells part of the story.

If you are new to business and you are still finding your feet with your offers and audience, starting an email list (but not selling!) is a great way to avoid overthinking. Kieran Drew recommends using your list to work publicly to address the problem in your business or your life as; 

1. There’s nothing like peer pressure to force you to take action
2. You become your own client without the pressure of conforming to outside values
3. Once you have solved the problem, you have a solution and something to offer your audience who trust you because you have proof.

If you are not using paid methods to grow your list, there’s a good chance it will grow slowly before you reach a 1,000 subscribers in any case. It’s worth using your early list as a test-bed for your lead magnets, polishing up your landing pages and your forms, so when you are ready to go all-in, you know exactly what your numbers are before you spend anything on advertising.

If you are an experienced business owner, it’s a different matter. You can monetize from day 1 as you will have a good idea of your strengths and weaknesses, a product in place (or at least a waiting list) and a way to get people’s attention. I’ve often worked with businesses monetizing sub-sections of their list for different products, or even hiving off to a different company. The second, third and fourth times you build a list are always easier because you know what it takes to get attention, build authority and keep trust. It does not hurt that an established business also has a body of case studies, testimonials and facts behind what they do.

How do you monetize your list?

The next question I frequently get asked is: how do you monetize your list? Is it as simple as sending out an offer and hoping for the best?

Sadly, no - not quite.

Even the best marketers will send out an offer half a dozen times in different format and different hooks to remind people to buy. They may also target their list on behaviour - someone who has visited your landing page but not bought gets a different email to someone who has not clicked. 

It’s a lot of work. However, once you know you personal rhythm and cadence, it’s easy to repeat the process. It’s also easier to keep going with a regular writing habit and emailing your list than stop-start bursts that breaks your connection with them.

Tip: For large list sends, my rule of thumb for good engagement’ is over 30% for the Open Rate, over 2% for the Click-Through Rate and under 2% for the Bounce Rate. This does not apply to your automated sequences, such as your welcome emails, which should be higher. As you list grows and you sub-divide it into smaller groups, you will also  see your results in these segments, compared to your overall list.

The final thing to think about is how often to offer something to your list. This is where anyone who offers online services - especially in the B2B space - falls into the ecommerce trap.

With e-commerce, regular sales are the lifeblood and most stores have a similar buying cycle to physical retainers with seasonal collections and a sales push every 6-8 weeks. 

However, you don’t need to do that as a service business!

There are three options available to you (without discounts or spammy selling).

1. Always on.
   This is your standard offer that people can pick up at any time.
   To get attention and have something to talk about, consider talks, a podcast or a webinar series that teaches the entry-level concepts required for your audience to buy your product. For example, someone who needs a new website will not know the nuances of AI search, or a decent conversion rate. Giving that education increases trust and allows them to make an informed decision about your product and price point.
   
   
2. Matinee Entry
   This data-based scarcity option works well for courses, coaching or software products that you only want to push a few times a year. Typically it’s because you have to spend time supporting and enrolling people which requires an intense period of activity from you. Or perhaps you only want to work for 6 months of the year and take the rest of the time off. Either way, you notify people in advance when the doors open and operate a wait-list the rest of the time. You can still sell smaller products to your list that support the Big Opening Day, but the plan is to build up the excitement. The good news about this option is that you can write, prep and schedule everything in advance.
   
   
3. Pick from the menu
   Instead of just one product, you may have a few options, allowing people to step into your world. For example:

•  a $37 no-brainer bootcamp, 
• followed by $200 membership 
• and then a $2,000 mentorship.

If you sell software as a service, it might be a 5 free seats for one month, with the chance to upgrade. If it’s a consultancy you can release several small on-demand info products that lead up to your hands-on approach. The key is to meet people where they, both with their comfort zone and their skill level. No matter how much they trust you, a start-up won’t have the profit to drop $2,000, but they will risk $37. 

Your Next Step

So there you have it. Depending on your experience, business style and size you have your answer for list monetization. It will be messy, it will be fun and the only way to find out is to try it. If you treat your audience with honesty and genuine desire to help, that trust will go a long way towards your sales goal.