What's a good Opt-In percentage?

[Earl Lear]

Guru's

What is a good percentage for opt-ins with regards to your newsletter? I'm trying to figure out if I'm doing crappy, OK, or Great..

Currently, I'm getting about a 19% opt-in rate but I've got my page setup so that you have to opt-in to see the sales letter. The point is (using this weekends stats) out of 28 clicks on my Adwords ad I've had 5 opt-ins. So, basically 5 people have seen the sales letter

The problem with this approach is; I'm thinking there were 23 people who just left without seeing the sales letter. No value whatsoever there.

Should I let everyone see the sales letter and just put the over-hyped newletter (tongue-in-cheek) ad/opt-in form on the salesletter page?

I guess what I'm asking is, is an opt-in worth 8 visitors or does my opt-in rate just suck?

Please share your experience with me.

Respectfully,
Earl Lear

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[Roosevelt Cooper]

Hi Earl,

How do you make money from your newsletter? Do you charge advertisers a certain rate to place ads based on your number of subscribers? Do you send out affiliate products and services to your subscribers and make money when they purchase these products & services? Your business model is key in determining what is a good opt in rate.

Let's say you make your money off affiliate commissions by promoting an affiliate product. You send out 1 newsletter a month and you typically get a 5% conversion rate out of a list of 1000 subscribers. You typically sell a $50 product with a 50% commission, which gives you $25 profit per sale.

With a 5% conversion rate, you can expect 50 of your subscribers to purchase the product. 50 subscribers times $25 a sale gives you a revenue of $1250 per month. If you take $1250 and divide that by the number of subscribers, this will tell you how much each subscriber is worth to you per month, in this case $1.25 a month.

A good opt in rate is any rate that allows you to acquire subscribers at a cost less than what the total amount per month each subscriber is worth to you. So for example, if you are paying 50 cents per click and you typically convert 20% of your clicks, for every 100 visitors you are going to get 20 opt ins. As a result, you are spending $50 for every 20 subscribers, which works out to $2.50 per subscriber.

Is that a good opt in rate? In this case, YES, it's an excellent opt in rate! You pay $2.50 for each subscriber once and you are going to make $1.25 for each subscriber PER MONTH! On the flip side if you have an opt in rate of 1%, it is costing you $50 for each subscriber. Since you are making only $1.25 a month, your typical subscriber would need to remained subscribed to your list for more than 3 years before you break even!

The lower your profit, the higher the opt in rates you need. The higher your profit, the lower your opt in rates you need.
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Roosevelt Cooper

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