So why is building an email list a good idea? There are many reasons but these are probably the most important ones:
i. Building lists allows you to reduce the cost of acquiring new customers. Contrary to what you might think, it is much, much cheaper (on a unique-sale basis) to presell and pitch to one person until she buys than it is to pitch to different people until one of them buys.
ii. Building lists allows you to maximize the profit that you generate per customer.
iii. Having a list means that you can participate in major launch events.
Next time there’s a big launch, you can benefit by being one of the first affiliates to offer the product.
iv. Having a list allows you to test your copy. With a captive audience, you can run controlled experiments to test your copy’s conversion rate before you pay to send the same advertisement out to a larger audience.
v. Having a list allows you to bring more to the table in future joint venture partnerships. Rather than simply offering to do part of the product-creation work, you can now offer to market the completed product to your list.