

How Andrew Warner built an email list of 23 million subscribers - il
http://www.startupfreedom.com/andrew-warner-interview/

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nowarninglabel
I'm not sure how to feel about this guy after reading about "grab.com". Not
sure how I missed that back in 2000 but apparently Andrew started a company
with a "billion dollar prize" from an online lottery. Turns out no one one the
billion dollar prize but someone won a million dollars from their random
drawing. [http://www.allbusiness.com/health-care/health-care-
professio...](http://www.allbusiness.com/health-care/health-care-
professionals-nurses-nursing/6016694-1.html)

So naturally I had to look at the odds, and if you pull up grab.com from
archive.org you see:

"Billion Dollar Sweepstakes: GRAND PRIZE PAYABLE IN 20 ANNUAL INSTALLMENTS OF
US $5,000,000 EACH, FOLLOWED BY 10 ANNUAL INSTALLMENTS OF US $10,000,000 EACH,
FOLLOWED BY 9 ANNUAL INSTALLMENTS OF US $20,000,000 EACH, FOLLOWED BY A
BALLOON PAYMENT OF US $620,000,000 IN THE 40TH YEAR, WITHOUT INTEREST. ODDS
1:2,404,808,340. NO PURCHASE NECESSARY. WINNER MAY TAKE IMMEDIATE PAYOUT OF US
$170,000,000 INSTEAD OF ANNUITY."

So 62% of the payment came 40 years later, otherwise a payout of $170 million.
Lame. Yet, I guess enough people were foolish enough to sign up for it...

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zach
Very similar to the structure of the Pepsi billion-dollar prize, I think.

[http://en.wikipedia.org/wiki/Pepsi_Billion_Dollar_Sweepstake...](http://en.wikipedia.org/wiki/Pepsi_Billion_Dollar_Sweepstakes)

Most huge cash prizes are annuitized. I went on Who Wants to Be a Millionaire
(airing Wednesday) knowing that even if I answered every question correctly, I
would at best be looking at a cash value of under $800,000. It's just the way
it works, and it's always spelled out in the official rules.

~~~
brucehart
They must have changed the prize distribution procedure for Who Wants to Be a
Millionaire. I was on the show in 2000. They gave us a big speech about how if
you win a big prize, they will literally cut you a check for that amount and
you should talk to a tax advisor before spending anything. One of their early
winners got into some tax trouble. I didn't win anything on the show, but they
sent me a check for $400 in January to cover my taxes on the plane tickets and
hotel.

~~~
zach
Ah, the primetime show with Regis. How many times I played their phone game. I
went on the syndicated show, where they got rid of the qualifying round and
now award everyone $1,000 even if they answer the first question wrong.

However, they do annuitize the million _and_ half-million dollar prizes and
don't pay for your travel expenses (but again, everyone leaves with a $1,000
minimum).

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jeremyjarvis
There are some takeaways I reckon, but re. the email list it's a defunct model
- which I think Andrew says as much.

~~~
il
Opt-in email marketing provides the highest ROI and conversion rate of any
online marketing method. Twitter and Facebook may be cool, but the guys
sending emails to their lists control the message and are the ones making the
big bucks.

~~~
patio11
I sell about $100 worth of software for every ten people I can convince to
click on a link in an email. That number _astounds_ me. I hope to do more with
it next year.

~~~
netcan
To expand, that means that if a user's average lifetime clicks is .5, an email
sign up is worth $50 in eventual revenue.

I have worked with clients (retailers) on their numbers and found that a
subscription (pen, paper and a person asking a couple of questions) is worth
more than a sale.

~~~
seanyg
Its awesome to hear these numbers!

