Don't Start a Newsletter in 2024

Summary

In this video, Scott emphasizes the importance of focusing on acquiring customers rather than just growing an email list. He argues that the market has shifted from lead magnets to prioritizing actual paying customers, regardless of the amount they've paid. Scott advises against solely promoting free newsletters and instead encourages businesses to offer affordable products to convert subscribers into buyers. He cites high conversion rates and the value of buyers over free subscribers, using the example of Rock, who successfully uses Samcart to drive sales with a front-end offer, demonstrating the effectiveness of this strategy.

Takeaways

• 📈 **Market Shift**: The market has shifted from focusing on lead magnets to prioritizing building a customer base.
• 📮 **Email List Quality**: It's more important to have a smaller, engaged email list of customers than a large list of freebie seekers.
• 💸 **Value of Customers**: The value of customers is not measured by the amount they've paid, but by their engagement and potential for future business.
• 🚫 **Avoid Freebie Seekers**: Freebie seekers can detract from the quality of your email list and should be avoided in favor of genuine customers.
• 📈 **Growth Focus**: Successful brands focus on growing their customer list rather than just their email list size.
• 💡 **Newsletter Strategy**: Newsletters should be used as a tool to convert subscribers into customers, not just to grow a list.
• 🎯 **Front-End Offers**: Offering relatively inexpensive front-end products can be an effective way to convert subscribers into buyers.
• 💳 **Credit Cards on File**: Having customers' credit cards on file is valuable as it indicates a higher level of commitment and potential for recurring revenue.
• 📊 **Conversion Rates**: High conversion rates are more valuable when they result in paid customers rather than just newsletter sign-ups.
• 🔄 **Resource Management**: Buyers are more valuable as they contribute positively to business metrics like email open rates and social media engagement, unlike freebie seekers who can be a drain on resources.

Q & A

What is the main point Scott is making about email lists?

Scott is arguing that the focus should be on growing a customer list rather than just a large email list filled with people who are only seeking freebies.

What was the prevalent strategy in 2009 according to Scott?

In 2009, the prevalent strategy was to create lead magnets, such as free PDFs, to attract people to subscribe to email lists.

Why does Scott suggest that the market has shifted away from lead magnets?

Scott suggests the market has shifted because the most important asset to build now is the number of customers one has, not just the number of email subscribers.

What is an example of a successful brand that is not lead magnet driven, as mentioned by Scott?

Rock is given as an example of a successful brand that is not lead magnet driven but focuses on getting customers and building a business through paid products.

How does Rock direct his social media followers to become customers?

Rock directs his social media followers to a page where they can purchase a relatively inexpensive product, turning them into buyers and customers.

What is the significance of having customers' credit cards on file, as discussed by Scott?

Having customers' credit cards on file is significant because it indicates they are more invested, likely to open emails, learn about other products, and refer friends, which is valuable for business growth.

What are the conversion rates Scott mentions for Rock's paid offers?

Scott mentions conversion rates for Rock's paid offers ranging from 13.3% to 18%, which are significantly higher than typical rates for free newsletter sign-ups.

Why are paid customers more valuable than free subscribers, according to Scott?

Paid customers are more valuable because they are more engaged, leading to higher email open rates, better deliverability, and they are more likely to purchase additional products or services.

How does Scott suggest measuring the effectiveness of a newsletter strategy?

Scott suggests measuring the effectiveness of a newsletter strategy by looking at conversion rates and the quality of the subscribers, not just the quantity.

What advice does Scott give to those who want to shift their business model?

Scott advises those who want to shift their business model to focus on creating inexpensive front-end offers that turn subscribers into buyers, and to consider using platforms like SamCart to facilitate this transition.

Outlines

00:00

📈 Shifting Focus from Email List Growth to Customer Acquisition

The speaker, Scott, addresses the current trend in the digital marketing space, suggesting that the emphasis should be on acquiring customers rather than merely growing an email list. He critiques the old strategy of using lead magnets to attract subscribers, arguing that the market has moved on. Scott emphasizes the importance of having customers, regardless of the amount they've paid, over having a large number of freebie seekers in one's email list. He suggests observing successful newsletter creators who focus on converting subscribers into paying customers and highlights the effectiveness of this approach using the example of 'Rock,' who uses his social media presence to drive traffic to a paid offer rather than a free newsletter. Scott points out that Rock's strategy results in higher conversion rates and more engaged, valuable customers.

05:01

💰 The Value of Buyers Over Free Subscribers

In the second paragraph, Scott further elaborates on the benefits of having paying customers compared to free subscribers. He explains how free subscribers can negatively impact a business by not engaging with content, marking emails as spam, and reducing deliverability rates. Scott contrasts this with the positive effects of having buyers, who are more likely to engage with content, recommend the business to others, and contribute to higher deliverability rates. He also mentions the shift in strategy among successful businesses on Samcart, moving away from free offers to front-end offers that convert subscribers into buyers. The paragraph concludes with a call to action for viewers to consider this strategy and reach out to Samcart's team for assistance in making the transition to an e-commerce model.

Keywords

💡Newsletters

Newsletters are periodic publications distributed by email to a list of subscribers. In the context of the video, the speaker discusses the shift in focus from growing a large email list to building a customer base. Newsletters are mentioned as a tool that can be used to engage with customers, but the emphasis is on converting subscribers into paying customers rather than just collecting email addresses.

💡Lead Magnets

Lead magnets are attractive offers that encourage people to provide their contact information, typically in exchange for a free resource such as a PDF or a webinar. The video script explains how the reliance on lead magnets has diminished, and the focus has moved towards acquiring customers who are willing to make a purchase.

💡Freebie Seekers

Freebie seekers are individuals who are attracted to free offers but may not necessarily become paying customers. The speaker warns against filling an email list with such individuals, as they might not contribute to the business's growth and could potentially harm deliverability rates by not engaging with the content.

💡Email List

An email list is a compilation of email addresses that a business or individual uses to send newsletters, promotional materials, or other communications. The video emphasizes the importance of focusing on the quality of subscribers rather than just the quantity, advocating for a list of customers over a list of freebie seekers.

💡Customers

Customers are individuals who have made a purchase from a business. The video script highlights the importance of building a customer base over an email list, as customers are more likely to be engaged, open emails, and make repeat purchases, contributing to the business's growth.

💡Conversion Rates

Conversion rates refer to the percentage of visitors to a website or viewers of a marketing campaign who complete a desired action, such as making a purchase. The video uses high conversion rates as an example of the effectiveness of focusing on acquiring customers rather than just growing an email list.

💡Front-End Offers

Front-end offers are the initial products or services that a business presents to potential customers, often at a lower price point to attract them and encourage a purchase. The video suggests that businesses should focus on creating front-end offers that can convert subscribers into customers.

💡SamCart

SamCart is an e-commerce platform mentioned in the video, which is used to build sales funnels and manage online businesses. The speaker uses SamCart as an example of a platform that can help businesses shift their focus from lead magnets to customer acquisition.

💡Deliverability Rates

Deliverability rates refer to the percentage of emails that are successfully delivered to a recipient's inbox rather than being marked as spam or sent to the junk folder. The video discusses how engaged customers can improve deliverability rates by opening emails and engaging with the content.

💡E-Commerce Strategies

E-commerce strategies are methods used to sell products or services online. The video suggests that businesses should adopt e-commerce strategies that focus on converting visitors into paying customers, rather than just collecting email addresses.

💡Buyers

Buyers in the context of the video are individuals who have made a purchase from a business. The speaker emphasizes the value of buyers over freebie seekers, as they are more likely to be engaged with the business, make repeat purchases, and contribute positively to the business's growth.

Highlights

The importance of focusing on growing a customer list rather than just an email list.

The shift away from lead magnets to building a customer base.

The market's transition from free PDFs and lead magnets to prioritizing customer acquisition.

The strategy of offering avenues to become a customer rather than just growing a free newsletter.

The example of Rock's approach to directing traffic from social media to a paid offer.

The effectiveness of Rock's strategy with conversion rates of 13-18%.

The comparison of conversion rates for free newsletter sign-ups versus paid offers.

The long-term value of buyers versus free lead magnet newsletter subscribers.

The impact of buyers on email deliverability and engagement.

The concept that buyers are more invested and valuable to a business.

The shift in Sam cart's top businesses from free offers to front-end offers that convert to buyers.

The advice for digital course creators and service sellers to adopt e-commerce strategies.

The offer for businesses to consult with Sam cart's team for transitioning to a buyer-focused model.

The overall message that buyers are exponentially more valuable than free subscribers.

The call to action for viewers to learn more about setting up on Sam cart.

Transcripts

okay Scott I have to ask you about this

everyone keeps telling me newsletters

are taking off paid news newsletters are

taking off I need to I I feel the the

necessary need to jump on a newsletter

grow your email list but you tweeted

this earlier this week and saying no you

don't need to grow your email list

explain yourself well I'm not telling

people not to grow their email list I'm

saying don't fill up your email list

with freebie Seekers you I mean when I

was getting started in 2009 everything

was lead magnets it was lead magnet city

right it was all like create a free PDF

and give it away and all that kind of

stuff and all I'm saying is that the

market has completely shifted away from

that to the most important thing that

you can possibly build is not the number

of email subscribers you have it's the

number of customers you have right and I

don't care if those people have paid you

a dollar or if they've paid you $10,000

right is shift energy away from join my

email list and just here's a free thing

get on my free newslet or get on my

whatever and start thinking about how

can I I grow my customer list right our

the brands that we have inside of Sam

card are Creator CEOs the people who

make seven figures inside of a year

right um we have people making eight

nine figures inside of 12-month periods

like insane huge Brands almost none of

them are lead magnet driven that's not

their mechanism of growth they are

focused on customers now you can still

have a newsletter like that's you know I

mean I'm not saying like delete your

newsletter like that's a bad thing you

just watch the people whose news letters

you're joining the people out there who

was saying like hey yeah do a newsletter

do a newsletter watch what they do you

join their newsletter and then what do

they immediately start doing is giving

you Avenues to become a customer right

so even they are really not that

interested in just growing a free

newsletter they're interested in buyers

too they're interested in getting

people's credit cards on file that is

how you grow a business in 2024 one of

the best examples that we could think of

is rockula he was on the podcast a few

weeks back uh he's great example front

of the show front of the show the show

rock for sure so yeah this is a great

example right so rock is somebody who

does a ton of traffic for free off of

YouTube and Facebook and Tik Tok things

like that and so when he has his Link in

BIO you know if you kind of follow the

breadcrumbs off of social media what is

he doing right roxs sends people to uh

and this is just a great kind of like

Canary and the coal mine example of what

do we see from like a broader

perspective is he sends people to a page

like this actually built entirely on Sam

card right and all it is is just a quick

offer right it's hey come get uh I

believe this offer is sort of like a

Spanish speaking boot camp type thing

it's like a you know quick four we sort

of deal um but at the bottom it's built

with Sam cart he's getting buyers right

the call to action here is not join my

newsletter for free it's buy my you know

training and for rock that's you know 67

bucks we see a lot of people who their

their front-end price point is something

in that kind of like0 to $70 range where

it's like affordable but you know I mean

some people go super cheap but you know

this is not a place where people toss in

like buy my $500 coaching or something

right this is relatively inexpensive

ways for people to become customers you

can see Rock does a great job right here

he's got an order bump that's uh for his

monthly membership so every person that

buys this $67 training you know turns

around and can become a uh a paying

subscriber of his right which is

absolute gold right but rock is

basically saying okay listen I'm going

to take fewer buyers right if this was

just like hey join my free newsletter

Rock would get more people to take

action of course right so when you make

it something that's buying he's saying

I'm okay with fewer people taking action

right but those people are going to be

worth three four five times x more in

the long run than me just getting a

whole bunch of freebie Seekers on some

free newsletter okay so we got to dive

into the numbers does this kind of

strategy work versus you know just

enrolling as many free people into your

list as possible I think we we've got

access to the database let's take a look

yeah so without giving away too much

about you know this individual business

right here we are this is you know some

of Rock's numbers and just the kind of

recent past here you know you're looking

at look at this look at these conversion

rates these conversion rates are 133%

this one's 14.5% 13.5% 18% right what's

a typical newsletter landing page if I

send someone to a page to just join my

free newsletter you know I mean you

might expect 25 to maybe 40% of people

to join your newsletter for free so

here's Rock getting you know

maybe still half as good a numbers but

people are paying him to do it now he's

got credit cards on file these people

are buyers which means they're way more

invested they're going to open your

emails they're going to learn about your

other products they're going to tell

their friends these are these people are

10 times more valuable than a free lead

magnet newsletter subscriber right but

Rock is getting them at half the clip

like you know what I mean so the numbers

are going to put Rock Way ahead here in

the long run um because a ton of people

are still taking action and the people

that are taking action are incredibly

higher quality right than than than the

freebie people who are saying cool I'll

join your newsletter and then they never

open your emails again they drag down

your deliverability rates they

unsubscribe they Mark things as spam six

months from now you know what I mean

like the free newbie mag the free lead

magnet newsletter type folks that

subscriber is a drag on resources

instead of someone who's a buyer is

going to be helping you it's going to be

exponentially watching more videos that

you publish on social media opening your

emails and clicking which you know

drives up deliverability rates is all of

those things are good a buyer is so so

so much more valuable than a free lead

magnet type person and that's why we see

this shift in almost all of Sam cart's

top businesses away from free stuff away

from you know they still might have a

newsletter it's still out there but you

know I mean that they are driving people

intentionally towards relatively

inexpensive front-end offers where

people can become buyers because buyers

are so much more valuable to the

business hope you guys enjoyed that if

you are stuck on this freebie Seeker

type treadmill and you want to start

switching your business to follow the

e-commerce strategies used by our

creator CEOs then head over to Sam card

today there's a link down below this

video where you guys can talk to our

team you can talk about how our team can

actually make that switch for you so if

you are a digital course creator a

service seller any kind of digital

product anything talk to our team today

see about how you can get set up on Sam

cart and we'll do all the work for you

click the link down below this video now

and we'll see you guys in the next one