How Ann Sieg Lost $350 000 In 2 Days!

The Renegade Network Marketer has been revised by Ann Sieg and an extra chapter has been added. This expands the Ebook into a 142 page document. If you have already purchased The Renegade Network Marketer, you can log in through The Renegade System and go ‘Tools and Resources’ and download the new revised edition.

Here is a summary of the new chapter that Ann Sieg has added to The Renegade Network Marketer Ebook.Chapter 8, “Your Most Valuable Asset”

You no doubt have heard it before but just in case you haven’t… your most valuable asset is your mailing list.

So what is so important about a mailing list?

How about $45, 493 profit in 2 days, or what about a loss of $350, 000 as a result of not building a list to its full potential? There are other reason that I will go into but lets examine these figures for a moment.

This is only speculation, but I would say that these are the figures from the first two days of The Renegade Network Marketer launch. Ann Sieg had a mailing list of 12 000 people. The product was and still is, $67 and so that meant that from Ann’s mailing list, 697 people made the choice to purchase in the first 2 days (and many more after I am sure).

This means that the conversion rate was 5.8%. This is guess work on my part, but I do remember that for the first 24 hours of the launch, The Renegade Network Marketer sold at half price. How many people do you think purchased on that first day? If 50% did, that would take the conversion rate up to nearly 8%. That is very, very good.

Do you know that if a direct marketer gets a 1% response rate they are happy? This is often enough for them to break even of the front end which they are happy with as they know that there is a lot more money in the back end or add on sales. So if it cost them $100 to send 1000 letters, and each sale made a net profit of $10, they would be happy with a 1% response rate. Obviously these marketers are dealing with far greater numbers but they usually start small and once they feel sure the conversion rate is enough to break even, they roll out the campaign in multiples of 10…thousand that is.

Marketing is a science and once the figures are there, these guys will roll out scary numbers and get it working within a very narrow margin, even within points of a percent. Once they are sure of the numbers, they are happy to spend $50 000 dollars on a letter drop. Now that is confidence in your figures!

Russell Brunson interviewed the offline marketing genius, Vince James and questioned him for 6 hours about how he made 100 million plus in one year selling nutritional products. You can learn a lot from Vince about marketing on and offline. At one point in the interview he says;

“Internet marketers have egos as big as the Mississippi, who cares if you make a $1000 000 in one day off a product launch, what ever…”

So when Ann Sieg is talking figures here, it is not to show off or anything like that (I know Ann and she isn’t like that at all), it is just to illustrate a point.

The point of this is that when you have a mailing list, it is not costing you anything to roll out a promotion and if you have treated your list with respect and have a good relationship with them, the chances of you getting a very high conversion rate very good. If you are not building your mailing list in all of your marketing, you are leaving money on the table.

In Ann Sieg’s case quite a lot of money…

How Ann Sieg Lost $350 000

So what is the figure of $350 000 all about?

Ann Sieg underestimated the importance of “the mailing list”. It was a very costly lesson…$350 000 to be exact.

Ann is very particular about numbers and stats (as most marketers are). It is very possible for Ann to review all of her traffic stats and make an accurate estimation of how many people she could have had in her opt-in list if she was using the strategies she is currently using today.

How is this possible?

Well, she would be able to tell you how many people hit her site today and give you the percentage of people that joined her mailing list. Looking back she could also see how many people hit her sight last year and how many people opted-in to her list.

On Ann’s calculations, instead of 12, 000 people on her list, she should have had over 90,000. That is over 7 times what she had. Remember that magic 2 days where she pulled $45, 493 from her list at a conversion rate of over 8%? Well times that by 7 and you get $350, 000. This is not just guess work, marketers basically stake their financial lives on figures like this everyday.

As you can see, it was a rather costly lesson for Ann to learn and in true Ann Sieg style, she is willing to share what she has learned in order to save you the pain of having to go through the same process. Start building your list today! (On that note, don’t forget to subscribe to my RSS feed to get all my latest posts and training videos)

Now apart from the fact that you could blow $350,000 in 2 days, there are a couple of other reasons why it is important to build your own list, Ann Sieg goes into great detail in Chapter 8 but here is a summary:

1. You Become a Independent Business Owner as Opposed to a Sales Rep for you MLM Company

When you have your own list, you have the ability to sell products and services outside of your mlm company, not other opportunities but tools and services that will help your customers and downline. When you are an independent business owner, they are your customers, not your mlm companies customers! You did they marketing so they are YOUR customers, you get to choose what you will sell to them and your mlm company does NOT have the right to tell you any different.  You are an independent marketing with the right to market what you want and how to your customers.

This is also a protection mechanism. If your company goes out of business or decides they are paying too much and want to get rid off you…no sweat, you have got your list of loyal customers. If you haven’t got this, your whole organization could be cut from under you before you know it. You may think it won’t happen to me, but there are plenty of horror stories out there if you go looking.

Having a list means that you are the center of your business, not your mlm company. This is a true independent business owner. Of course some companies don’t like this, but they will just have to get over it because as business owners, we are free to choose and promote what ever we like.

2. Joint Ventures

Once you have a sizable list, other business owners will want to do joint ventures with you. This means that you will increase your credibility in the marketing world, your list will then start to grow exponentially and all sorts of doors will open.

Look at Ann Sieg for example; Ken Evoy from Site Build It noticed what she was doing because of all of the sales she was generating for Site Build It through the Renegade System backend and now they are doing a joint venture together. Ken Evoy has massive credibility in the Internet marketing world and now they are working together to leverage off each other. If you don’t have a list, these sorts of doors are not open to you.

Well known Internet marketer Rich Schefren recently released a free report, The Attention Age Doctrine V2. In this report, he goes into great depth about this concept, he calls it piggybacking. The only way that you can get the attention of someone that is well known in the market place is to have a large customer mailing list. Once you have that, you can leverage your position in many, many ways.

A word or warning, never send junk to your list or introduce them to people without a high level of professional integrity. I have stopped reading peoples email after they have sent me a bad offer. You may get away with it once or twice but 3 strikes and you may have to start all over again.

Most marketers will tell you that if they were striped of everything and they were only left with their mailing list, they would be back in business in a matter of days. So if your mlm company goes out of business or changes it’s policy, how soon could you be back in business?

Building a list is not as hard as it sounds, you will need an autoresponder and squeeze pages. I previously used Aweber for an autoresponder and Mathew Glanfields YourSqueezePage to create my landing pages. Each of these products are $19.95 each which is  not too bad as you can have a functional internet marketing business with these too resources.  I have recently changed to Oprius to do both of these jobs.  It only costs me $14.95 and so I can have all of my work in one place and at the same time save $24.95 per month, not bad. You can Trial Oprius for 30 Days at no cost by going here…

In summary, the extra chapter in The Renegade Network Marketer provides some insights into taking control of your business as a network marketer. You will find that chapter 10 has also been updated. There is a marketing tip in there that will help you make a lot more money in your marketing. It is something that I will be implementing in my marketing straight away.

So what are you waiting for, log in to The Renegade System and download your new revised version of The Renegade Network Marketer. If you have not yet to purchased Ann Sieg’s ebook, you can read more about it by clicking here…