Don't Start a Newsletter in 2024
Summary
TLDRIn 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
📈 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.
💰 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.
Mindmap
Keywords
💡Newsletters
💡Lead Magnets
💡Freebie Seekers
💡Email List
💡Customers
💡Conversion Rates
💡Front-End Offers
💡SamCart
💡Deliverability Rates
💡E-Commerce Strategies
💡Buyers
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
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