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The answer to this question can be very simple and also it can be very complicated for a person who is just starting their online business. Many of us have difficulties in building a list and developing a fruitful relationship with the subscribers. If these two are not performed then, there is a gap in the system and email marketing will not be effective.

Before we go in depth, we may want to look at the fundamentals of email marketing.

In order to make email marketing effective, first of all we need to have subscribers and when I mean by subscribers, it has to be reasonably a big list. Because a conversion rate, although it may vary, could be 1 buyer out of a 100 or a 1000 subscribers. The conversion rate also depends on the value perceived by your subscribers about yourself and your product. By that, I mean to say, how convincing have you been to your subscribers. How much do they trust you to get them influenced to buy your product.

Yes, there is also the selection of niche product to sell to your subscribers. A good highly targeted niche product would sell quite well.

If we read again the above statements, there is a chain of actions to be performed before you can get to promote your product to your subscribers.

First, you need to get a list of subscribers. This is one of the most important part of the chain, as no list equals no profits. To get a list, you have to build an attractive, appealing squeeze page to attract people to opt-in to your mailing list. This can be done by giving something valuable to the person.

Second, after you have built a list, you need to build a relationship by giving them valuable content. This will increase their confidence towards you. This is your first step towards email marketing. By adding value, you will also be able to study their needs.

Third, now that you are building trust, you would want to also earn money through your subscribers. Understanding your subscribers’ needs is very important. Imagine, people have opted in to your mailing list for networking marketing and your are trying to sell them dog food. You will never convert those emails to sales.

Fourth, finding the right niche products tailored to your subscribers needs. There are tons of products out there but understanding the selection criteria and the ones that convert is vital. You can go to places like Clickbank. It is the best place to find your exact niche product. Some of these products also provide marketing tools like emails and Lead capture page.

Many of us fail in email marketing because we don’t emphasize enough on building a highly targeted list. Second, as soon as we start building a list, we are excited to promote to them the very instance they opted in to the mailing list. Nobody likes to be bombarded with promotions. They will never read your emails. Give them value and then attract them to your products.

For any business to be profitable, we need to build trust and confidence with our audience and email marketing follows the same concept. So my friends add value to your list, help them like you and you will see that everything else will follow smoothly.

Until next time. Wishing you all a Happy and Prosperous New Year 2010.