Your email campaigns should be resulting in revenue, and even better, profit! So how can you tell how profitable your email campaigns are? Here are some quick and easy formulas:

Revenue Per Email: Every email address on your list is worth a particular dollar amount per year. To calculate your RPE (Revenue per Email), use the following formula:

Total annual sales resulting from email campaigns / number of email addresses sent = RPE

Calculating Lost Revenue: To find out how much attrition is impacting your revenue growth, use the following formula:

(Number of email addresses that unsubscribe or bounce) x (RPE) = Lost Revenue

Now the question: are you tracking your profitability? It’s easier for some people to track profitability than it is for others (based on whether you’re selling something via your email campaigns, or whether you’re solely building rapport), but email marketing is truly an effective and profitable method for establishing your brand.

Best wishes, and Happy Marketing.