As an Internet marketing tool, e-mail can sometimes produce mind-boggling results, especially for small and medium-size companies which are looking for cost-effective ways to promote their product or service.

E-mail is great for many reasons. First of all, it's free. Secondly, it's easy to use, whether you're sending or receiving e-mail. And third, it's easy to monitor. Like traditional advertising, e-mail also allows you to reach thousands of consumers at the same time. But, perhaps, best of all, you don't even have to leave the confines of your home or office to use e-mail.

Meanwhile, it's a cinch to measure results when using e-mail, whether you're targeting people in the next country or on the other side of the world. You don't need complicated formulas or expensive market research studies to see how effectively e-mail works as an Internet marketing tool. All you have to do is count. For example, if you distribute 10,000 e-mail messages and receive 200 responses, it's easy to see that you have a batting average of 2%. On the other hand, if you use advertising, you can't really tell for sure how many people bought your product or made inquiries because of a single ad.

In case you're wondering, a batting average of 2% isn't bad for e-mail marketing. Any time your Internet marketing efforts via e-mail garner a 1% to 3% response, that's excellent. On the other hand, if you're working with a mailing list of truly "hot" prospects, a batting average of 5% to 10% is pretty good.

Here are some tips about how to use e-mail as an effective Internet marketing tool.

1. Respond promptly
   Any time you hear from your prospects, that means they're very interested in what you have to offer, so write them back right away while the interest is high. Don't let a week go by without responding.
2. Always express your gratitude
   There will be times when people write back just to ask questions. Even though they did not buy a thing, you should be grateful that they wrote you anyway. Say thank you. Besides, people tend to forget that they inquired about a product or service. Saying thank you reminds them that they're interested in what you have to offer.
3. Emphasize the benefits of your product
   In Internet marketing, the best way to introduce a product is to being with its benefits. People always regard products based on their interest. They ask themselves 'what's in it for me?' If your e-mail can provide a compelling answer to that question, then your Internet marketing has done its job.
4. Go straight to the point
   Any Internet marketing effort should be simple and easy to understand, particularly if its e-mail. Use simple words and short sentences. Keep your tone casual and go straight to the point.
5. Try to give them an incentive
   Create interest by giving prospects a special introductory offer or a free gift. In the world of Internet marketing, the words 'free' and 'discount' are magical.