Establishing the True Value of an Email List: Calculating Its Worth

Building an email list takes time, consistency, and–most importantly–value for the audience.

Done well, list-building can help you get maximum effectiveness for your marketing campaigns and scale your brand.

An email list holds immense value–so much so that there are more than 306 billion emails sent and received each day. But have you ever wondered, “How much are email lists worth?” Great question.

Let’s discuss the five factors you need in order to calculate the value of your email list.

How Much is an Email List Worth?

Well, it depends. A list of 10,000 emails from highly engaged users may be worth more than a list of 100,000 emails from low-activity users.

Additionally, the value of an email list can vary depending on the industry and how the list is being used. For instance, a list of emails from people interested in a particular product may be worth more than a list of emails from people interested in a specific topic.

People’s interest in your niche, and how you leverage it, makes your list more valuable. It is not just a way to build your brand outside of other social media channels, but also to tell your story.

Email lists allow you to send targeted messages to your audience, segment them into different groups, and track the performance of your campaigns. In addition, email lists provide an opportunity to collect valuable data about your customers, such as their age, location, interests, and purchasing behavior. This data can be used to build more effective campaigns, increase conversions, and boost ROI.

Email lists are priceless assets for any business. They are a way to reach out to potential customers, build relationships, and increase sales. In simple terms, an email list is worth exactly what it can do for you.

Consider These 5 Factors to Understand the Value of an Email List:

List Size.

While pure size is a significant element, it isn't everything. A longer list entails not only more potential clients but also more rivalry. One of the first inquiries a potential buyer will make is about the total number of subscribers–and that number plays a significant role in the valuation.

List Quality.

It’s important to ensure that the list you’re buying contains active and engaged subscribers. How responsive the email list is, and how active the subscribers are, are the two main elements to consider as you determine list quality. Here’s a great article with more detail on list quality.

Open Rate.

A moderately small list with a very high open rate is frequently preferable to a huge list with a dismal open rate in the eyes of smart investors. The list's strength and its willingness to respond to offers from the new owner are both well-represented by the open rate. A strong open rate indicates that the list is accepting offers and might be very beneficial for new owners.

Purchase History.

The email list's purchasing history provides a more complete picture of what the recipients are accustomed to. The conversion rate of the offers that were distributed can also be included in this. It would be fantastic to provide details about any successful email campaigns that were sent using the list. This demonstrates to potential investors that emails are opened and that further actions are performed.

Unsubscribe Rate.

It's a bad sign if the list is losing email addresses. List retention provides valuable information about whether this is a list that is prepared for additional offers or information or one where many people are weary of being on it. On the flip side, a low unsubscribe rate is encouraging, particularly if the open rate is high.

How Much Can You Sell Email Lists For?

As you can see, pricing an email list isn’t an exact science. It might cost between $100 and $600 CPM (cost per mille, the price for 1000 email addresses) to purchase an email marketing list. The quality of the emails sent out and the characteristics of the list's subscribers define the worth of an email list. You should also be considerate of legal factors while considering selling or buying an email list, as it can be a privacy concern for its subscribers.

Can You Make Money From an Email List?

Yes, you can. There are numerous avenues to monetizing an email list–too many to include in a single article. That said, here are some of our favorites.

Email marketing

Once you have a list and are sending out emails, you should consider creating an email marketing campaign. This is a series of emails that are sent out over some time with a specific goal in mind, such as promoting a product or service. You can use affiliate links or create your own products and services.

Remember to track and analyze the results of your email campaigns. This will help you determine what is working and what is not, so you can make changes to your campaign as needed.

Affiliate marketing.

Once you have a high-quality email list you can begin to research affiliate programs. Make sure to choose affiliate programs that are related to your niche. Look for programs that offer products that are relevant to your audience. Once you’ve chosen your affiliate partners and signed up for their program, you can promote the affiliate products. Create a special offer for your subscribers that includes a link to the affiliate product.

Selling products or services.

With an email list, you can also target specific segments of your customer base, allowing you to tailor your message so it resonates with each individual. Additionally, email lists can be used to conduct surveys, collect feedback, and build relationships with customers, which can help you better understand their needs and improve your overall marketing strategy.

Once you understand your audience you can sell products and services that resonate with them. You could also give them reasons to buy those products through your recommendations by giving them personalized referral codes. If you write about health and fitness, for example, you could recommend supplements to your audience through the email list.

Selling Your Email List

Once you’ve built and scaled your email list, you can consider selling it, like Milk Road did recently.

For this to happen, you have to make sure that your list can be leveraged by the buyers. Once an email list is sold, you will no longer have access to the emails, and the new owner will have access to the list. Selling an email list is the ultimate way of making profits out of it. Email List Worth: Final Thoughts

Email lists hold more value than social media in today’s times because of the experience they can provide to a selected audience.

Be it surveys and polls, audience segmentation, or just engaging with them on a personal level, you can do it all through an email list.

There is a lot that email lists can help you achieve if you do it the right way. Whether you’re building it from scratch or buying one, a high-quality email list is a priceless asset for your business.

No matter which path you choose, the right email service will help you build better for yourself and your audience.

If you’re wondering which service to choose, we’ve got your back.

You can sign up today on beehiiv, and start writing!