As a coach or consultant, you know that it’s important to have a list of prospects and clients. In online marketing we call this “your list,” and it is created when people subscribe or opt-in on your website.
I find that most coaches starting out don’t realize how valuable their list is or how powerful it is at helping them achieve a great income. So in this article, I’ll help you calculate some critical numbers you need to know.
You’re going to love this. Just plug in these simple formulas to calculate how many subscribers you’ll need to have a 6-figure (or multiple 6-figure) coaching practice.
First the basics…
What is a “Big List” and Do You Need One?
This term usually refers to a list of over 10,000 subscribers. But it also implies a list that generates multiple 6-figures a year.
When I first started learning about Internet marketing 10 years ago, most people who earned 6-figures or more per year had lists with over 10,000 subscribers. And if you wanted to earn 7-figures or more a year, you needed more than that.
That was then, this is now…
The great news is that list building strategies have come a long way since then. It’s now possible to have a 6-figure coaching or consulting practice with only a thousand subscribers – sometimes less. I know one coach who earned $250,000 with a list of less than 500 subscribers.
This is why it’s so important to keep up with the latest cutting-edge online marketing techniques for your business. The list building strategies being used today can help you achieve your online goals much faster than a few years ago.
How Much is Your List Worth?
You want to calculate both the total value of your list and the value of each subscriber.
Your list value is equal to your income for the last 12 months. This applies to anyone who is marketing online, building a list of subscribers, and emailing that list regularly.
You might be asking, “What if no one buys products or services from my website or emails? Do I still calculate the value the same way?” The answer is “yes.” You see, as a coach or consultant, your income comes from clients, but it starts with prospects. And those prospects are on your list.
So even if all your income was derived from clients who chose to work with you while talking to you over the phone, the process started with your marketing for prospects. And list building was a part of that process.
So the next critical number you want to know is…
How much is each person on your list worth?
You want to know whether or not you have a profitable list or just free-bee seekers. Knowing the value of each person on your list will help you make that determination. It will also help you calculate the value of your marketing and advertising.
Take the total value of your list and divide it by the total number of unique subscribers.
Why unique subscribers? Because if you have more than one email list for your business, some people may be subscribed more than once. For accuracy, you don’t want to count duplicates.
How do you get the number of unique subscribers? If you use an autoresponder service like 1ShoppingCart or AWeber, you are able to send your newsletter out to all your subscribers and only send one email per address. The system eliminates the duplicate addresses for you. So look at the total number of emails sent the last time you did a broadcast to your entire database.
For example, let’s say you have 3 different email lists. One is for opt-ins to your free offer, one is for people who registered for a free teleseminar you held, and the third is for a free report you promoted. You have a total of 375 subscribers on all three lists. But when you sent your last newsletter to all three lists, it was sent to only 280 subscribers. That means you had 95 duplicate subscriptions.
So if your past 12-month income was $68,000, then that is the value of your list. Let’s apply the formula.
$68,000 / 280 = $242.86
If you are a coach or consultant, your subscriber value should be at least $200/unique subscriber. If it’s less than that, you’ll want to determine where the problem is and fix it.
It may be that you just haven’t offered subscribers what they really want. If so, you can quickly increase your income simply by finding out what they want most and offering a product or program that gives it to them.
Or perhaps your subscribers are not really your ideal clients. This often happens when coaches have an email list and decide to change their niche and packages. It’s also a sign that your opt-in page may need to be rewritten.
One of my clients has a subscriber value of over $400. She has a $500,000 coaching practice and her list was only 1,200 subscribers when we last spoke.
Another multi-million dollar coach I know has a subscriber value of about $360 per person.
If every new subscriber was worth $200, $300, or even $400 to your business, how excited could you get about growing your list?
Which leads us to our next question…
How big does your list need to be?
This formula is easy to calculate. Decide how much you want to earn. Divide that number by the value of each subscriber in your list.
For example: You’re new at coaching and earned $10,000 over the last 6 months (equivalent to $20,000/yr.). You have a very small list of 114 subscribers. Your value per subscriber is $175. ($20,000 / 114 = $175)
Let’s say you want to double that and earn at least $40,000 next year.
$40,000 / $175 = 228 subscribers (You need an extra 114 subscribers.)
What if you work on clarifying your niche and your ideal client so your income rises. Your subscriber value could easily rise to $250 or more per person. In that case, your business is now worth $57,000 with the same 228 subscribers. (228 subscribers X $250/person = $57,000)
Is it realistic to get an extra 114 subscribers in the next 12 months? You bet it is!
Want a 6-figure business? With a subscriber value of $175/person, all you’d need is 572 subscribers. At a value of $250/person, all you’d need is 400 subscribers.
Summary – 6-Figure List Building Strategies
I hope you’re getting really excited about growing your list in the coming 12 months. I know I am.
There are lots of ways to easily build a list of prospects and clients who want to work with you. You’ll find several suggestions in my 7 part audio course “How to Mine More Wealth and Clients with Your Website.” If you haven’t listened to it yet, you can sign up at the top of the page in the sidebar.
No matter which list building strategies you decide to use or who you choose as a mentor, all methods require a website to collect names and emails and an autoresponder to send emails.
If you don’t yet have a website – or if your subscriber value is less than $200/person – I’d love to help you accelerate your business growth and income. Just email me or call 423-463-0003 for details on how a Mother Lode Website™ can take your business to the next level.