Outsource data protection specialists
Posted: Sat Apr 05, 2025 6:34 am
Jim also knows that he has 5,000 email subscribers who receive his ecommerce marketing emails every month.
This means that each of Jim's newsletter subscribers is worth $3.00 in gross revenue.
This means that, in theory, if Jim wanted to increase his online revenue to $60,000 a month, he would have to figure out how to get 20,000 email subscribers.
But Jim can't stop there.
You need to consider the cost of goods sold to know how much you can spend to acquire a subscriber to your newsletter.
Suppose Jim spends $50 for each flower he sells for $1.00.
This means that the best equation Jim can use is:
(Monthly email revenue as a channel divided by number of email subscribers) * Gross profit = Monthly net revenue per email subscriber.
Net monthly revenue per email subscriber
So, let's do these calculations.
Jim sells $15,000 worth of flowers online a month.
He has 5,000 email subscribers.
This means that Jim earns $3.00 per month in gross employment data revenue from each of his newsletter subscribers.
But Jim only keeps 50% of it.
So, Jim actually earns $1.50 a month from each of his newsletter subscribers.
Calculating the value of an email subscriber infographic
How to Determine How Much You Can Spend to Acquire an Email Subscriber for Your Ecommerce Email Marketing
At the simplest level, it seems like you can spend $1.50 to acquire an email subscriber for your email ecommerce efforts. That would make sense, but something is missing. It’s missing:
This means that each of Jim's newsletter subscribers is worth $3.00 in gross revenue.
This means that, in theory, if Jim wanted to increase his online revenue to $60,000 a month, he would have to figure out how to get 20,000 email subscribers.
But Jim can't stop there.
You need to consider the cost of goods sold to know how much you can spend to acquire a subscriber to your newsletter.
Suppose Jim spends $50 for each flower he sells for $1.00.
This means that the best equation Jim can use is:
(Monthly email revenue as a channel divided by number of email subscribers) * Gross profit = Monthly net revenue per email subscriber.
Net monthly revenue per email subscriber
So, let's do these calculations.
Jim sells $15,000 worth of flowers online a month.
He has 5,000 email subscribers.
This means that Jim earns $3.00 per month in gross employment data revenue from each of his newsletter subscribers.
But Jim only keeps 50% of it.
So, Jim actually earns $1.50 a month from each of his newsletter subscribers.
Calculating the value of an email subscriber infographic
How to Determine How Much You Can Spend to Acquire an Email Subscriber for Your Ecommerce Email Marketing
At the simplest level, it seems like you can spend $1.50 to acquire an email subscriber for your email ecommerce efforts. That would make sense, but something is missing. It’s missing: