Hey welcome back! So glad you came back... let's make money!

I’m sure that you’ve heard this headline before “The Money Is In The List”, or from a traditional small business perspective “The Money Is In Your Client Database”.  Its nothing new when it comes to business, and because we consider making money online just the way would would consider a real business, we can adopt many of the same principles.

Yet it astounds me when I talk to small business owners and ask them about how they keep contact with their customers, that such a high percentage of them do not even keep a database or mailing list of their customers.

I was speaking to a friend and very success ful Internet Marketer - Aurelius Tjin - not that long ago about how his business was going, and whether he’d noticed any changes with the so called GFC, (No not Geelong Football Club), but this financial crisis which the world has subscribed to because of the media (but that’s a whole other story).  His response has stuck in my mind and its something that I will never forget as long as I am in business.

He said - “I have a business as long as I have my list.”

So here’s my question to you - “Do you really have a business?”

It may be a harsh statement but I would go as far as saying, if you do not have a list, or a database of clients, you dont have a business.  If you dont have a way of keeping in contact with your customers, keeping them informed of market trends, sales, discounts, members specials, special occasion deals etc etc, then you are relying on chance and probably spending way too much money marketing your business - whether it’s online or offline.

So what are the benefits of building a list or a database?

1. A list gives you the ability to build relationship

People buy from people!  Relationship is key in a world where trust is rare and scammers are a dime a dozen.  With a targetted list of customers and potential customers you have the opportunity to let your list get to know you, beyond the instore or online interaction, which is generally based on a desire to research or purchase your product or services.

By providing regular and relevant communications to your list, whether it is via an email newsletter or print newsletter, you have a window of opportunity to put yourself and your brand on display, not in the form of a sales pitch, but in a way that builds relationship with the aim of becoming a ‘Trusted Friend’ and ‘Expert in Your Field’.

Consider this - If we were friends, mates, pals, buddys.  But every time I contacted you, it was just to ask for a favour, or to borrow your Nintendo Wii, pretty soon you would realise that I was just using you, and abusing our relationship.

But what if we had regular and relevant communications, we spoke once a week on the phone, or via email, just updating each other on what’s happening in our lives, and then on the occasion that I needed to ask you a favour, wouldn’t you feel much more inclined to offer your services?

That’s exactly how we should approach building our business, online or offline.

Through regular communication comes trusted relationship. This will directly correlate to the level of conversions you have when you do pitch a product or an offer.

2. The Bigger Your List - The More Money You Make

It’s quite legitimate to actually place a $ value on your list.

I was speaking to an Australian Internet Marketer recently who has a list of over 40,000 subscribers in the Internet Marketing niche and he was saying that he makes approximately $10 per person, per month from his list - not a bad little business!

Now he’s probably more of an exception rather than the rule, but there is no reason you cant build a targetted list of subscribers in your chosen niche or business, and then monetise that list.

How would your business be positioned if you could make an extra sale to just 5% of your customer base each month?

Let’s say you had 1000 customers (which we’ll assume you’ve built a list of these customers).  If you created an e-newsletter, which went out 4 times a month, and at the end of the month you included an affiliate offer, or another product worth $37.

If only 5% of your list took up the offer each month at $37 you would generate an extra $22,200 per year!

Does that give you enough of a motivation to start building a list of targetted customers?

I sure hope so… so get to it!

If you found this post valuable dont miss another one - subscribe to my blog feed and Lets Make Money!

Nathan Hulls
Internet Marketing Expert and Intrepreneur

Check Out These Similar Posts Below:

• The Magic Marketing Word - FREE
• Internet Marketing Etiquette - Dont Be Mr Bonehead
• Simple List Building Secret | Explode Your Database
• Turning Your Passion Into Profits
• Value Is King - Key To Internet Marketing