The Myth that Email Marketing has High ROI

The Scrappy Marketer has a post today. So do many others including eMarketer. This is the Biggest Myth we have to bust.

Lets reason: Why does Email marketing have a high ROI?

1. People SPAM. Most people spam. Read the comments on Chris Anderson’s post on PR and look for a commenter named Dan. He and everyone else “buys lists” for the cheap. I got an email pitching me email addresses of 27,000 doctors in the US – for $395.

2. Its Easy: Yes there’s “ A/B testing, blah, blah, blah“. But Email marketing for most parts is EASY. You need 3 things right: 1) Target list – See #1 above. 2) Offer – In B2B whitepapers or 3rd party content works best and 3) Compelling draw – Again in B2B, sign up for this webinar now is sufficient.

3. Its CHEAP: To get a 2% open and 1% click through rate for an average sales price of $20 you only need about 20,000 names. Cost of this campaign <500.

Seth got this right “Email means the cost of adding one more name is zero. Email means that
lists keep getting bigger and bigger and once you’re on one, you’re on
em all.”

Its not the BEST ROI – Email is the CHEAPEST option if you SPAM & you do get returns, but is it the right thing to do?

Like saying “The easiest way to make a million is rob a bank” – but should you do it?