It is an accepted fact among experts now that online marketing succeeds only with a quality, highly targeted permission email list in place. As a result, multi-level marketers have pounced on this and everywhere you look another "matrix" lead generating system springs up.
There is no doubt that these are powerful techniques offering advantage of building your subscriber base while basking in profits simply from growing your list. This is a best-of-both worlds sorts where very thing that you are promoting is one in same with what you are building -> your list.
For "newbie" marketers, it is easy to get caught up in frenzy since one is desperately hungry to build a subscriber base and actually see first profits rolling in. However, with working on an initially limited advertising budget, monthly charges to stay in "matrix" can take a substantial bite out of other advertising resources.
What is one to do? Can you build a list with highly targeted subscribers, subscribers who are craving for your information, at relatively low cost? The answer: yes, but it takes time.
For those just starting out this is a double-edged sword. You want profits soon, but also want profits to continue to come in. The problem here is that two are contradictory. They straddle two opposite sides of fence so to speak.
*Consider following scenario:
Suppose you have a large subscriber base that trusts your opinions and judgments. On Friday you send to your list a promotion for which you either own product or are an affiliate. Now suppose that your list is 3000 subscribers in size, your conversion rate is 5% (pretty good) and your profit per sale is $99. That amounts to $14,850 in sales from one campaign! Not bad, not bad. I could easily live with this kind of return.
Now lets take another scenario. You are just starting out, understand that building a list is of utmost importance, but really want to start making profits quickly. You purchase 600 leads advertised as "quality double opt-in MLM". You then quickly blast away your promotion. Approximately 0.5% (note that this is an order of magnitude less than first example!) actually make purchase - 3 out of 600, which is not a very good conversion. But hey, you paid $100 for leads, made $297 in sales, for a $197 ROI! Just starting out, you become giddy and sort of euphoric at profits you have just made.