Remember the value of a competition when it comes to database building

win-a-little

I’m a direct marketer at heart. It’s how I started my career (so long again it was in mail order shopping, well before the dawn of online shopping!). It’s still what I most trust. I feel safer making an investment (of time or money) where I’m able to say with reasonable confidence “if I spend X, I’ll get Y in return”. It’s the same reason CPC online marketing has become so popular. You get an immediate cost per lead.

Now to be a successful direct marketer, you need your own list – preferably an email list, because email is still the killer app. And one of the best (and cheapest) ways to build a list is a competition. I’ve run MANY of these over the years and it constantly surprises me how much information people will share about themselves on the promise of winning something, even something comparatively small. We all love the thought of something for nothing.

So if you’re struggling to work out how to build your email list, run a competition.

The example I’ve included in today’s post is a perfect zero budget marketing example. The cost of the promotion is negligible – they’re giving away five copies of an ebook, so at most the ‘value’ is probably $25 – but I guarantee you they’ll get hundreds of entries. And they’ll be valuable entries because the sort of people who want to win a book are obviously ‘readers’ and ‘readers’ are pretty likely to buy books too.

The beauty of those people who join your email list is that they become the path to even more people.

I’m in the midst of a ‘refer a friend’ promotion with another client, with a total prize pool of only $750 (five spa gift vouchers – both the referrer and the referee go into the draw when the new person joins). The response has been huge – 25% of the new sign ups we’ve had for the offer have come from the refer a friend promotion, despite it being about only 5% of the campaign budget.

Now of course once you have people on your email list, you’ve got to treat them with respect – entertain them, educate them, keep them involved. But before I veer off onto a whole other post, for now let me sum up by saying:

Building a prospect and customer email list will be THE MOST COST EFFECTIVE form of marketing you’ll ever do.

And an extremely cheap way to get people onto your list is to run a competition. And then run another one. And then run another one…

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