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Opt In Leads As Assets

- June 3, 2010, 1:22 pm | Opt In Leads Information

During the course of this auction, and the one previous, I received a lot of questions about this ‘Leads’ business. So in an attempt to provide you with a more concise package of information I am writing this document. Hopefully, it will answer most of your questions, and maybe dispel any concerns you might have.

opt in optin sales leads
Marketing across niches can open up untapped markets

The 7.6 Million Opt In Leads being auctioned are sorted by the ‘niche’ or the type of ad they signed up with. If a person signed up with our Health Reform ‘Cliff’s Notes’ eBook they are under the ‘Health’ niche. So if your business is Health-related these would be great leads to contact.

One myth
or concern I hear a lot, is the assumption that if you are not advertising something health-related you should not contact the people in the health niche. That assumption is not true. Consider the lead gathering process for a moment. The people under the ‘health niche’ did indeed request Health Reform information. But does that mean that they wouldn’t be interested in ‘Relationships’ or ‘Investments’? 

Your main target should, of course, be within your niche, but each of these 7.6 Million leads are potential customers. You should not make the mistake of believing the ‘electronic walls’ that sort these leads are there to prevent access. They are there only for convenience.

So each of these leads is an asset regardless of your business type. In that light, you have 7.6 million potential customers.

As to value, there are two ways to look at it. 

1.
What are they worth on the marketplace. You can determine this by simply checking out the competition. See what these leads are selling for. You will see a wide range of prices, from a nickel to $0.25 each. Yet, even based on a low, wholesale-type figure, these leads are valued at over $24,000 – if you were to buy them from the marketplace.

But that is still a little misleading. If you buy these leads to rent or resell, are you only going to rent or sell each lead just one time? Of course not. The $24,000 is only what it would cost you to buy them outside this auction. I think you can see that having these leads as an asset has a huge upside.

2.
If you have ideas on using these leads for your own business – you are not alone. Over 60% of the people I have spoken to have those same ideas. And why not? The math is actually incredible to consider: Let’s say you have a product or service that nets you $10 per sale (likely a low figure). Statistically, based on a huge input of numbers by the ‘Direct Marketing Association’ the ROI on direct marketing is greater than $40 earned for every $1 spent. 

A step further:
 Statistically, for every 1,000 emails you send out you should receive 20 responses – a 2% response. These are low figures.

Depending on your product, price, ad copy, etc. you can expect a 10% sell rate.  You would know your business better than I, so use your own percentage there. But assuming a 10% sell rate, those 1,000 email ads you sent out would create 2 sales. If you net $10 per sale you earn $20 for the 1,000 email ads sent.

However, you will send more than 1,000 emails. At 100,000 emails sent you would make 200 sales and $2,000. 500,000 emails sent would earn you $10,000. You get the idea. And that doesn’t take into consideration the repeat business from satisfied customers.


 






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