This is one of those questions we get asked from time to time, and honestly, my answer to this has changed in recent times. Here’s our view after avoiding it for years and then trying lists for a few clients.
It’s Not Ideal.
I want to make sure we make it very clear buying email should be on the “no-no” list. This is not a go-to-market strategy that reaps great results in the B2B space. We’ll get into the reasons why it does not make “cents” but maybe sense, but also it defies a pretty common practice known as permission marketing.
Permission marketing is this idea, coined by marketing expert Seth Godin, that being able to market to your customers works really when they have given you permission to do so because of the value you bring.
Buying lists flies right in the face of this very philosophy.
So, from the outset, buying emails violates this concept and steps on the very privacy that everyone hates and is really at the center of the CAN-SPAM act. No one really likes getting junk email. But liking it does not mean that it does not work. Junk is in the eye of the beholder…
So, let’s make sure we all know – say it together with me – Buying email lists is not a good plan. But…
There is Always a But…
That is the problem with hard rules, that there is the letter of the law and the spirit of the law. You should not buy email lists if you are not thinking about how it fits into your overall strategy, or if you think its going to be a shortcut to success.
Yet, buying lists is a viable experiment in marketing strategy as you push into trying to grow your universe.
The key is to treat it like a gamble. If you are sinking your last marketing pennies into this strategy, I’d rather you buy your current clients a Starbucks gift card. You’d get more in return. But if you are using this as an experiment and well aware this might be a loss, you’re good to go.
When To Buy Lists
This is the big question. Buying email lists has a lot to do with your goals for the campaign. The most common use of this is to enter new markets where you have lots of volume to explore and a PROVEN MESSAGE. No that is not a typo, that was all caps for emphasis.
You need to have significant volume of prospects because buying email lists and sending has very low return. There is a high likelihood that a 1% return could be a high five moment for your team. So you need to be thinking of buying thousands of names, not hundreds, to increase that return chance.
Second, you need to have a proven message. You need to be working with some messaging, or an offer that you know works. You don’t want to go bat on an experimental campaign with unproven messaging. If you don’t know if you have proven messaging, you don’t. The pain of proving your messaging results in an unforgettable experience and knowledge of such a process.
Conversely, using purchased email lists could be a great way to test a messaging strategy in the macro sense, but maybe not to drive revenue from the gate.
What to Expect and Pay
So the next question is how much should you pay and what to expect in the process.
There are some good and bad list houses. You’ll have to contact me of you want my opinion I can’t publish that here. But you’ll want to explore different houses to see what deals you can get. Your negotiation skills could really make a difference here. I’d budget around .02 to .10 per email address depending on the details of the query.
I’d always go a bit broader on the query than you’d expect. If you are going to target a city like Chicago, I’d grab a 50 mile radius, rather than the downtown zip codes only.
But work with your rep, you’ll get a rep and plenty of attention when you start knocking around the doors of list houses. They have great ideas and they are vested in your success.
Leasing is a good option if you don’t have your own system, or don’t want to buy the list. It can be a bit cheaper and you’ll have more bandwidth for other tactics.
How the Numbers Work Out
The expectations are low on this type of campaign. You are looking at this as much as a branding campaign as a direct response campaign. This means make sure you build brand value in the email, but also look for a very clear call-to-action so the recipient has a logical next step.
As I mentioned previously, you might see a 1% return on a campaign like this. So if you are looking to build some awareness in a new market, that might be enough of a return on a CPM type cost basis. I’ve yet to hear of a email service that would do a cost per click pricing, but that would be amazing.
So if you buy 10,000 names, you might see 100 people click and view your landing page or offer. If you know your funnel metrics, you can run the value from there. So you need to see what makes sense in terms of a cost. If that 10K names cost you, .02/per, or 200 dollars and you can achieve that value in your funnel with your current conversion rates, then it make sense.
Are You Game?
So what do you think? Can you run the numbers to make email buying work for you? It’s a risky strategy , but contains some upsides if its played correctly. Like any investment, its all about leveraging risk and making sure that we understand the risk that we have.