That bulk email list is cheap for a reason

Your grandmother was right when she said you get what you pay for. There are various reasons why buying email lists is generally patentable as "a bad idea," as outlined in this article.

Renting email lists is an alternative, though there are dark sides to email list rental, too. One of the best ways to spot a scam or just a low-performing rental list is to look at the price.

What counts as cheap (and, therefore, nasty) in the list rental world?

Worldata just released some info on average prices for their lists.

Permission-based B2B and B2C email list rental prices for November 2007 averaged $275/M and $161/M respectively.

Admittedly they have some premium, highly-respected lists in their portfolio. But it puts those $2 cpm email rental lists into perspective doesn't it?

Here's some advice I wrote a few years ago on rental prices which still hold true I think:

1. The definition of a reasonable price depends on what you're getting for your money.

2. Don't assume that a high price means high quality; do your list quality checks.

3. Very low prices usually mean spam lists, but may also just mean poor targeting or a low list quality. It is possible, though hard, to find very cheap lists that are run ethically.

4. When evaluating the base price, don't forget to take into account the other price components. A list may have a low base cpm but high transmission and other costs to compensate.

5. The rule of thumb is to look for outliers. If most of the lists you're looking at charge around $200 cpm for your audience, and one charges $10, be very suspicious! Equally, if one charges $400 they may be over-charging.

6. Never assume the price given on a rate or data card is fixed in stone. Although some of the big brands will not discount, most list managers and owners are willing to discount from the rate card, especially in a poor economy. After all, the actual cost of delivery for them is minimal.

7. Your chances of getting a discount rise if you're...

Using a broker with an existing relationship with that list owner or manager
A repeat customer
Renting large volumes of addresses
Purchasing at the end of a month / quarter / year, when list managers are trying to meet their quota
Renting a relatively untargeted or unpopular list
Paying quickly and reliably

As always with list rental issues (which I researched from the outside) I'd welcome any comments/corrections from those active in the industry.

Tags: email marketing, email list rental, bulk email lists

Permalink | December 07, 2007 | 0 comment(s)
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