Newbie here,
Only purpose I see for collecting email addresses from your site is for sending out newsletters and occasional product ads.
Am I missing something else here? Seems like a lot of people are putting a lot of effort to collect email address from people...
You are kind of missing something, but not far off.
Suppose you are paying for your traffic at $1.00 per click. How many things can you possibly do to get the highest return possible?
If you have a visitor who just cost you $1.00 because they were just shopping around, looking for options, and you didn't collect their contact information. You succeeded at either:
1.) Paying $2.00 for this customer instead of $1.00 since they will have to search for your ad at a later date when they want to buy.
- or -
2.) Paying $1.00 to educate this customer, but if your ad campaign isn't running when they want to buy your product, they will be buying from someone else.
If you collected their email address and sent them a weekly newsletter, then when they were ready to buy, they wouldn't even have to look. You would be reminding them that they were looking into it before. Then they will act.
And of course, when the newer thing they were interested in comes out. You will be there to let them know you can provide it to them, and since they have done business with you before, they will trust you more than anyone else and the sale will be yours.
Collecting their contact information and keeping in touch opens an opportunity for long term income from your customers rather than short term or one time only purchases.
Look at it this way too, suppose you are *buying* an internet business. Which would you rather invest in?
1.) A nice domain and landing page ready for ppc/seo promotion.
- or -
2.) A nice domain and landing page, with a huge list of loyal customers who have already made repeat purchases.
Obviously, the safer investment is #2. So of course, when starting a new business, you should be building the business the same way.