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.