Renting an email list can be a challenge because of potential spam issues and damage to your reputation from the use of a bad list. In the past, only about 10 percent of the email list vendors were reputable. Currently, the situation has improved due to marketer demand for cleaner, more targeted lists.
There are thousands of lists to choose from, in every niche under the sun. B2B list rentals are basically reputable, but B2C rentals are less organized and some lists provide low value. However, if you do your homework and choose wisely, you can find yourself some very successful lists. Below are some tips for finding successful rental lists.
List Rental
A list rental refers to the purchase of a third-party email list for one-time use. The vendor (list owner or broker) sends out emails on your behalf, but you provide the creative and subject line. The mailing goes to a list of people who have opted in to receive email offers from the list owner.
When reviewing lists on the market, examine the list data cards displayed on the vendor sites. You never actually see the list of names. The vendor provides you with the number of recipients on various lists, and you can also request a specific number of recipients. You decide on the date and time the mailing will be sent out. You can have the list run against your suppression “Do-not-email” list. Once you provide the creative and specify timing, the list owner sends out the mailing from its server.
If you are doing this for the first time, research to find the best list brokers in your niche and then request some tests, negotiating for the best trial rates. Analytics and metrics are imperative for success in list rentals.
Finding the Right Lists
Before testing a list or renting one, ask for a list of previous list users so you can investigate the type of businesses (brands) that have been successful with specific lists. That way you can judge whether or not this might also work for your brand. Look for known brands repeatedly using a specific list.
In general, you must send several mailings before you start to get good results. Sometimes smaller, more targeted lists work better than larger ones.
Ensure that you rent double opt-in lists (double opt-in requires the list vendor to send a secondary email requiring a response before the name is added to the list. To ensure a list is actually opt-in, you can sign up for the list yourself and see if you get the secondary email activating the subscription.
Average List Costs
Costs vary widely, but targeted consumer lists run from $90 to $160 per thousand names, and the larger, aggregated databases range from $65 to $125 per thousand names.
The B2B, lower-end aggregated small business lists start at $75 per thousand. The higher-end lists targeting controlled circulation publications and targeted at specific groups run as high as $300 per thousand names.
Your Offer
Your offer must be relevant to the subject the list members opted in for or your
message will be deleted and your reputation suffers as well.
Watch for list owners that switch IP addresses. Set up dummy mailboxes to catch junk, and verify the original point of name collection.
Creative That Work
You can’t assume that your top-performing house email creative will test well with a rented list. House emails are normally retention messages, and you need to develop original acquisition creative for your rental list campaigns. It’s tempting to test your best campaign on a rental, but if you do that you may assume that rentals don’t work, whereas it’s the nature of the creative that is not working.
The recipients of rental lists are not in a relationship with you, whereas your house-list customers are. So you need the type of creative that will appeal to brand new customers. Even if you’re a well-known brand, that doesn’t automatically create an email relationship. You must establish the relationship from scratch.
For introductory campaigns, use benefit-driven copy rather than offer-driven copy (which works well with your house list). You need to tell these new recipients who you are. Some might be leery of Internet offers in general so you need to establish credibility. Put an About Us box on your landing page that explains who you are and what you do. Also tell them about your track record. Maybe you have thousands of repeat customers or have been in business since 1990, etc.
Your goal is to establish trust points. If the list owner comes from a high-trust brand, you might say, “As recommended by ZiffDavis” or “Brought to you with permission from ZiffDavis” on your landing page.
List Rental Test Metrics
You can’t know ahead of time about bounces because only the hard bounces are really measurable. For example, 97 percent delivery rates don’t include the number of emails going into filters. Therefore, the only way to accurately assign value to the list is to look at your opens, click-through rates and the percentages of those numbers that are converting to sale in your list rental test.
Remember, there are thousands of email lists on the market, but less than 20 percent are worthwhile, so it’s very important to test. It’s key to use single-source lists.
Ask your list broker how many names on a list should equal 100 clicks. That can help in the test assessment as you can then determine what results meet your criteria.
Even if you run a test for 5,000 names, you can’t always be sure about the trial’s accuracy. That’s because some list owners might deviously send your test campaign to 10,000 in order to raise the response rate and get the buy.
Ask if the list has a recency selection because recency makes a big difference in response rates. Many list owners don’t charge extra for this and only 25 percent of lists offer recency.
Some large list buys can contain names already in your house file. You should be especially wary of paying for those names. Request a sample in order to run a test or have the third-party vendor run a check of your list against theirs. This can help get the price down.
Deliverability and CAN-SPAM Issues
When you use rented lists, you should ask the list owner to run a suppression file. Suppression files remove records from a database that are no longer accurate or current, or names that should be removed due to opt-out requests.
For both CAN-SPAM and branding concerns, you also must ask the list owner to run the database names against your “Do Not Email” file and “Unsubscribe” file.
It’s a good idea to provide two opt-out links with your rented list campaigns: a regular unsubscribe button and a “Do Not Email” option. You must have these mechanisms in place to remove those that do not want to hear from your brand via email.
You must include your physical street address at the bottom of the creative to be in compliance with CAN-SPAM. You also want to request the time/date stamps for all of the rented addresses. This comes in handy if a recipient complains about receiving an email, as you can provide them with a record of when they opted-in. In closing, below are a few specific tips for B2C and B2B list rentals.
B2C Tips
1. Study all possible demographic segments and values because list owners can try to sell you a lower-valued demo and mark it up. When you overpay, you lose profitability.
2. Take the time to get at least three to five quotes.
3. Look for list owners or brokers that don’t email more than twice a week.
4. You need to know where the addresses originated. Find out where the names were collected, URL-by-URL. Know what topics recipients opted in for.
B2B Tips
1. Look for highly targeted lists, which are now more available than they were a few years ago.
2. If you run into a list deal where you have to buy a webinar and a space ad, be aware that arrangements may or may not be in your favor.
3. Note domain name expirations in the news (publications/vendors/software firms), scraping them from your campaigns.
4. While selects are still important, don’t forget about source. You can tell a lot about the potential effectiveness of a file by looking at its source.