Question

Topic: E-Marketing

Methodology To Determine $ Value Subscribers

Posted by Anonymous on 9/9/2010 at 10:41 PM ET 25 Points
I was wondering if anyone is aware of any research/discussion around determing the $ value of a subscriber to your newsletter/membership to your website? I understand that various industries/products will vary but there must be some basic methodology someone has created to use as a guide? I am trying to determine a value for a new subscriber.
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  • Posted by Peter (henna gaijin) on 9/10/2010 at 1:04 PM Accepted
    Value depends on how you monetize the subscribers.

    I am assuming you don't charge for them to receive the newsletter. If you do, it is easy to calculate. How much do they pay for an issue, and that is the basic value of the subscriber (plus any value from other means of monetizing).

    If you sell ads, then often the ads are sold per thousand impressions, in which case you can calculate what each viewed copy of the newsletter is worth.

    If the newsletter is more of a way to get information out about products that are then sold, then it is more challenging to calculate. Maybe you can figure out how many sales are gained by increasing subscribers by x number, and use that to calculate a value per subscriber.
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