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If you are planning on blogging and building up an online business one of the first things you need to do is build up an email list. Many of the big internet marketers say that the ‘gold is in the list’ this is true but not just for those trying to push dodgy Clickbank products.

Big companies like Pizza Hut use email to send out vouchers for offers like ‘two for one pizzas’ They may not be trying to do the hard sell or recommended related products but they can help increase revenue by tempting people into their restaurants. People who probably were not thinking of going but suddenly faced with a great offer they go and spend money at Pizza Hut that wasn’t originally destined for their tills.

Building an email list and having a newsletter is great for all types of businesses and not just the internet marketer. There are several great reasons why any business should build an email list and one seriously good one is that you can keep reminding people of who you are, what new products or services you have to offer and generally say ‘Hi how are you? Doing ok I hope, just a little reminder to say we are still here with plenty of great offers and advice so why not pop over to our website today!’

Now I am sure you have seen bloggers and internet marketers tell you that you can start a blog and an online business for a year for as little as $70 and this is true, the cost of a domain and hosting can be that for the whole year but not many of them go on to tell you the other costs that are involved in being successful.

If you are serious about starting a successfully online business then building an email list is going to pump up that cost. Compared to investing in many off line businesses building an email list is still fantastic value for money but you still need to know that there are costs involved.

Now there are many services that you can use to build your email list and send out email newsletters properly, MailChimp, Infusionsoft and Aweber. These companies vary in prices and also in what you can do. MailChimp for example used to dislike their system being used for internet marketing and affiliate promotions which is a shame as they are free for the first 2000 subscribers on your list allowing you to send 12,000 emails per month. To send unlimited emails you will need to start paying and it starts from $10 a month for 0-500 subscribers.

They prefer more business types of emails so if you are creating a business that isn’t internet marketing then it could be an excellent set up for you. I personally have not used MailChimp before; I have used Infusionsoft and Aweber. I personally do not like Infusionsoft, they are costly and the system is hard to use but they are more than just an email autoresponder service. They are a complete marketing system that you can run an affiliate system through and also take payments with.

The industry standard for many is Aweber; it is our preferred system and one of the best. They do a special ‘try it out’ offer for one month at $1 then after that it is $19 per month for up to 500 people on your lists. Once you go over 500 the price will increase.

Try Aweber’s $1 Trial Here

The Extra Costs Involved

Now I want to make this clear, this is something many people will fail to tell you at the beginning… the price is for 500 people on your lists and not subscribers… yes read that again. If you have 300 active subscribers but have had 250 in the past who had subscribed and then unsubscribed you will be charged the higher rate unless you clean up your lists and delete those names.

It’s not that Aweber are evil robbing bandits, it is just that not many people realise that that is their system and not many people will tell you that so list management is a must. Keep on top of your lists!

Ok so once you have started your online business and started to build your email list with Aweber you now add an extra yearly cost of $210 to your start-up costs ($1 +11 months @$19= $210)

A Well Managed Email List Is Always Worth The Money

As you can see this isn’t earth shattering, $19 a month is what… the price of a few coffees? We prefer you to know upfront though as many people will not tell you all of this. But that $210 is an incredible investment when you think about it.

Imagine that you were a small local Pizza shop and you decided to follow the lead of the bigger boys Pizza Hut and start to collect email details of people in your area.

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If you had a list of around 500 people and you sent out an email each week with special offer that resulted in just ten people coming in and spending roughly $20 each that they probably wasn’t going to spend with you before the email offer, you would have paid all but $10 of your years costs.

Now do that every month and you have generate extra money for your business which you wouldn’t have had without the email list. People use Facebook and Twitter to send out promotions and you should too, they are free and there to be used but email is still the better converter for sales.

You see Facebook and Twitter use newsfeeds that are crammed with anything and everyone, there are offers and promotions from all kinds of people and many users on Facebook dislike them with a passion. You see anyone can create a Facebook page or post a promotion and many have been scams so people are still pretty wary of promotions on these networks. Things are getting better though.

But with email, where does the email come from? The company or company owner themselves. Email is more personal and people still to this day believe that emails come from the companies that look to have sent them even if they didn’t. This is the reason why email scams worked so well and are still very popular these days. People generally trust email over all other networks.

Email is the first and original social media network and it still converts better than the rest so if you are taking your business online or planning to build an online business then you really should be setting up your newsletter and building your email list from the start.