EZ Marketing | Updates | Tips

Ever wonder why it is so expensive to do an email campaign?  The biggest reason boils down to economics 101, the fact that most cappers do not have economy of scale.  Unless your name is Jim Feist, you don’t have the economy of scale to acquire all the components to do a campaign cost effectively.  This means that you pay for services such as email delivery, design services and lead acquisition at low volumes which are typically the priciest.

Is their a solution to lower costs on your email campaigns?

Cooperative advertising is the answer.  Cooperative advertising means sharing the costs of the campaign among a group of cappers so as to share the costs.   Working together allows all the costs of a campaign to be spread out among 4-5  different cappers (that’s the most we recommend).  Most customers know that any capper is typically only good at one sport and at most two.  Our newsletter is written to promote a single capper in each of the key betting sports (i.e. NFL, MLB, NBA, NHL, NCAAF or NCAAB).  They are written in a format that appears less like advertising and more like a magazine review.  This appealing format increases readability.  We also include in our newsletter free giveaways and a free-ebook to increase the attractiveness of the creative content.

To see a our template sample click here or click the image at the bottom of this post.

What are the costs of email to do it yourself?

The costs for setting up a mail campaign can be substantial.  Here are some of the typical costs:

• Design of creative (e.g. image creation, layout)
• Setup and monitoring of campaign
• Acquisition of quality email lists
• Email delivery costs (based on number of emails and bandwidth consumed)

Our New Full-Service Email Solution

EZCapper is launching a cooperative email program that allows up to 5 cappers in any week to promote their services to our highest quality lists.  Our lists includes those listed on this blog at the “Email | List Marketing” category and most include full names.  This list is constantly monitored and renewed to ensure only the best and freshest leads are included.

Note: For those cappers that have the budget, they can choose to use our service to deliver a newsletter that exclusively advertises their service only.

Each week a newsletter highlighting a capper for each of the 3 sports (e.g. NFL, MLB, NBA etc.) plus a headline sponsor will get a mini-review that acts as an advertorial.  The headline sponsor will provide a free pick.  An advertorial will be written up on the sponsoring capper.  Here are the details of our delivery:

• Once per week from 10,000 up to 250,000 deliveries
• Cost will be based on whether or not the capper wants to sponsor the entire newsletter or do a coop with other cappers.
• Creative costs are included in coop deliveries.
• Delivery costs are based on the lists size and the actual cpm.  We will provide credits for future deliveries on emails that are not delivered (“undeliverables“).
• Prices are based on position in the coop ad (refer to the sample template)
• Reporting is provided 5 days after the delivery (for accuracy as it takes a few days for the reporting)

The advantages of using our service?

• The difference from owning your own email lists is that first of all you don’t own but are renting which is far cheaper.  As we are managing the lists, the lists are better quality than what you can get on your own.  Purchasing lists often results in a high number of undeliverables plus they are often a bit outdated.
• With our service you don’t need to manage the delivery or design the creative which is very time consuming.
• Technical issues.  If you have ever tried to send your own emails in large quantity you know the difficulties.

The cost of using our services?

As our lists are constantly growing we charge on a CPM (cost per thousand basis).  The costs depend on the specific position in the newsletter.  Here are the variables:

• Do you want to do a email on your own without cooperation with other advertisers?  If you want to do a customer newsletter where you are the sole advertiser it will cost $30 cpm with a minimum order requirement of 5000 recipients.  This works out to $150 ($30 cpm x 5) for a delivery to 5000 recipients and you need to do your own design work.  For us to design a newsletter for you will cost about $50 based on $25 per hour.With custom deliveries the exact number can be requested, so if you want to deliver to 5000 or 1,000,000 recipients we can accommodate custom delivery sizes.

• If you do coop advertising you cannot specify how many emails will be delivered to.  We charge only for emails delivered.  All emails that are undelivered are refunded in the form of credits to be applied to your next order.  For example if you are to do a Main Sponsor ad then your cost per CPM is $15.  We currently have a list of 125,000 recipients (this is changing daily as our opt-in lists are growing).To deliver to this would then cost $1875 (125 x $15).  At the end of each delivery we will receive undeliverable reports.  If say 12,500 emails or 10% are undelivered we will provide you with a credit of $187.50 ($15 cpm x 12.5)  in credits  to be applied as a reduction in the next mailing.

• If you want to do coop advertising this will cost depending on position.  Please refer to our template sample or http://topsportstips.com/newsletter/sports/handicapper_referral.htm

Will I make positive ROI?

A lot of customers have difficulty in doing calculations to arrive at what their return on investment is.  The first key is to determine what the lifetime value per average customer is (commonly known as LTPV).  Say for example:

• Average package size sold is $100
• Average length of customer using services is 4 months

Then the LTPV is simply $100 x 4 = $400 per customer.  Note that a lot of cappers upsell picks and provide other services that increase LTPV considerably.  The LTPV  range for some cappers can range up to $1700 per customer.

Now let’s say that you do 125,000 emails on our coop program at a rate of $15 cpm as a main sponsor.  The cost will work out to 125 x $15 = $1875.

So to break even on the campaign you would need 5 customers, 5 customers x $400 would yield $2000. A $2000 revenue on $1875 in expenses is a ROI of (2000-1875)/1875 = 6.67%.  ROI calculations for 10 signups would yield a return of (4000-1875)/1875 = 113.3%

To obtain just 5 customers on a mailing of 125,000 would require a signup rate of 0.004%.  That is only 1 out of 25,000 recipients would need to signup for your service in order for you to be profitable!

For EZCapper customers we provide an additional guarantee…. if you do not achieve a positive ROI on your first campaign we’ll include you on a second campaign for FREE.  To qualify for this offer you need to contact us so we can confirm your campaign details.