How much is a reader worth? Direct Marketers know. They have calculated that an offer that might result in a loss leader transaction can ultimately be worth thousands of dollars over the lifetime of the relationship. While it may cost a lot – printing, postage, list acquisition – to get an initial response, every future interaction will be more cost effective. They remove the middleman and communicate directly with their customer.
As affiliates, our problem is slightly different. First, when we connect a reader to an offer, the provider (and the network) have access to our reader. They no longer need us. We are the middleman.
During my last post I described the need to keep expanding readership to keep growing our business. This time – it is how we start to understand the lifetime value of a reader. How can you calculate what a single reader is worth? Look at average readership and response times average offer value. Knowing the number and if you are working to build readership, there is one way to grow your income – find better offers.
What were you best performing offers last year? Knowing this can give you a profile of your readers far beyond Google analytics. It will also enable you to pick new offers that convert at higher rates. And revenue grows.
What is your lifetime value of a reader?