Why Building an Email List is a Smart Investment for New Entrepreneurs
- CC Nichols
- Sep 14
- 3 min read
In the dynamic realm of entrepreneurship, new business owners often find themselves juggling numerous responsibilities, from product development to marketing strategies. One pressing question arises: should you prioritize building an email list or growing your social media presence? While both avenues are crucial, this post delves into why building an email list is a more strategic investment for new entrepreneurs.
Consider the concept of "rent vs. own." When you develop a following on social media, you are essentially renting space on someone else's platform. The platform controls the rules, and at any moment, they can change the settings or even suspend your account. In contrast, an email list is a valuable asset you own. You control what your subscribers receive and when they receive it. Let's explore this in depth.
The Power of Ownership
Owning your email list means you have direct access to your audience whenever you choose. You can communicate with them freely, without fretting over algorithm changes or platform restrictions. This ownership fosters a personal relationship with your subscribers, leading to improved engagement and higher conversion rates.
For instance, when you send a newsletter with a special offer or an important update, you can be confident that your message reaches your audience directly. Since emails have an average open rate of around 20%, unlike social media posts that might only reach 5% to 10% of followers due to algorithms, the potential impact is substantial. This difference can significantly influence your business growth.
Building Your Email List: The Basics
So, how can you kick-start building an email list? Here are a few practical steps to get you started:
Choose an Email Service Provider (ESP): An ESP helps you manage your email list, design campaigns, and analyze performance. Affordable options include Mailchimp, ConvertKit, and Sendinblue. Many of these platforms offer free tiers, allowing you to try them out before committing financially.
Create a Sign-Up Form: After selecting an ESP, you will need to create a sign-up form for potential subscribers. Keep it simple by requiring only essential information like name and email address to encourage sign-ups effectively.
Offer Incentives: To boost sign-up rates, entice people by offering something valuable, such as a free eBook, discount code, or exclusive access to content. For instance, a study from HubSpot found that businesses offering valuable content see a 22% increase in sign-ups.
Promote Your List: Share your sign-up form across various platforms, including your website and social media channels. More visibility translates to more subscribers in your list.
Engage and Nurture Your Subscribers: Once you have subscribers, it’s vital to keep them engaged. Send them regular newsletters filled with valuable content to maintain their interest and cultivate loyalty.
Why Email Lists Outperform Social Media Followers
While social media serves as an excellent way to connect with audiences, it's crucial to remember that you do not own those followers. The platform does. This means your reach can be limited, and your content might not always reach its desired audience.
In contrast, email allows for direct communication with your subscribers. You can segment your list based on interests, behaviors, or demographics and send tailored messages that resonate with them. According to Campaign Monitor, segmented email campaigns can result in 760% more revenue than non-segmented campaigns. This level of targeting is challenging to achieve on social media.
The Long-Term Benefits of an Email List
Building an email list is not just about short-term sales; it contributes to creating a sustainable business model with long-term advantages:
Higher Conversion Rates: Email marketing typically yields a better return on investment. According to the Data & Marketing Association, email marketing generates approximately $42 for every $1 spent, making it far more effective than social media marketing.
Ownership and Control: You own your email list. This asset remains with you regardless of changes on social media platforms.
Building Trust: Regular communications with subscribers build trust and credibility. When your audience sees you consistently providing value, they are more inclined to become loyal customers.
Data Insights: Email service providers offer valuable analytics to help you understand your audience better. You can track open rates, click rates, and other critical metrics to refine your strategies further.
Summary
While social media can play an important role in connecting with your audience, building an email list is a more strategic investment for new entrepreneurs. The "rent vs. own" analogy highlights the value of controlling your communication channels. By owning your email list, you can nurture deeper relationships with your subscribers, drive higher conversion rates, and build a sustainable business model.
If you're ready to embark on building your email list, consider subscribing to my newsletter, "Mind Your Own Business." You'll gain access to practical recommendations, discounts on email service providers, and vital tips to help your business flourish.
