Why you should never buy an email list!

Nowadays, one can easily purchase a database with over a million email addresses for about $300. What next? Just upload your list using an existing or new email marketing account, send the offer to these “fresh” leads and wait for the great results? Actually, NO, this isn’t the way it works.



Many companies are keen on acquiring lists of “fresh” email addresses to send their offers to. It’s so much faster and easier than building up an organic list gathered from their own trusted sources. Some of these companies are simply not aware of the problems which may be caused by purchased lists.


Permission

People only respond well to emails they asked for. Why would anybody ever give permission for their personal data to be sold repeatedly for a couple of dollars? Neither you nor anyone else likes to receive unsolicited emails. These subscribers may have opted in for real estate offers, but now they’re receiving your offer for a totally different service! Even if you’ve taken the time to create a well-targeted list, it doesn’t change a thing if the recipients didn’t opt in. Please keep in mind how you feel when you receive unsolicited emails. Think about it. Would a legitimate company really sell a list of high-quality customers that took years to accumulate – and risk losing ALL those customers after the first unsolicited campaign?



List Quality

Most likely, the email addresses from purchased email lists are gathered by automatic scripts, robots or other malicious software. Moreover, most of these leads are dead email addresses, which expired a few years ago, or non-existent emails or spam traps. With email lists, it’s always about quality, NOT quantity. You can have a million contacts on your list but it won’t matter if the subscribers don’t respond. In fact, you’d be lucky if your average open rate landed between 0.01% and 0.1%. On the other hand, a company that uses only 10.000 high-quality, opt-in email addresses can achieve 50% open rates and higher. Now, which list would you prefer to use?


But what if the subscribers on your purchased list opted to receive third-party offers? Most people that do this simply don’t know what they’re getting into, but they will still tag such messages as spam when they get them. Multiple uses of the same lists by multiple vendors can lead to a barrage of marketing emails and subscribers simply turn off – or turn on the SPAM button. So using these kinds of lists can lead to spam complaint problems that could put your email marketing account in jeopardy. Most importantly, the negative effects of using purchased lists can impact loyal, active customers who want to receive the newsletters and offers you send.



ISPs and blacklists

Sellers of email lists usually have a decent website: they guarantee ‘fresh’ opt-in email addresses; they promise that the list is well-targeted and responsive; and that they can provide proof of permissions, etc., should you require it. So the overall impression may be quite professional. But remember, no legitimate company would ever try to sell you a high-quality mailing list. Period!


A marketer can  easily buy poor email lists, filled with undeliverable email addresses, spam traps, and some real email addresses of people that will click ‘this is spam’ button when they get your email. Emailing such a list would likely generate a maelstrom of spam complaints, prompting email marketing account closure, and destroying marketer’s reputation. This is serious!



The victims

These lists can wreak havoc on everyone that does business with you. Of course, the first victims that come to the mind are the subscribers on the email lists. However, the damage doesn’t stop there.  Here are a few victims of sending unsolicited bulk emails to purchased email lists:



  • Sender of abusive email lists damages their own reputation, leading to possible blacklisting or blocking and/or deferring of all sender messages by the major ISPs.
  • Email Marketing Providers that strive to maintain the highest possible deliverability rates have to “clean up the mess” due to senders’ abusive traffic, investing major time and resources.
  • ISPs are already struggling to develop more advanced systems and to allocate massive resources for spam detection and prevention in order to protect inboxes.



Organic growth is the answer

Growing your list organically is the best way. You are in touch with users who are interested in your offer and maintain their engagement. They signed up on your website of their own free will. So you know the list is creditable and that you are in control. Read about some best practices to support organic list growth or download our list building white paper. Without a doubt, organic growth is the safest and most effective way to build a successful mailing list.


What’s your “definition” of “organic” list growth? Would you like to share some of your experiences, tips, or perhaps “things to avoid” when building subscriber lists? Your comments are always welcome!


Maciej Buchowski is an Email Solutions Specialist for GetResponse, focused on optimizing deliverability and educating customers on privacy and anti-spam policies.

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  • http://www.vemma-md.com rudi neidhardt

    be great to find a way with your system – to get new leads for my business.
    Thanks
    = R

  • http://econsultancy.com Matt Owen

    Some very good points here Maciej. Email marketing often has a very strong ROI, but only if you are taking the time to target a relevant audience. If you are just randomly broadcasting across the web your emails, no matter how well put together, are going to come across as spam. It’s really worth taking the time to build your own lists and organise them correctly before you begin engaging.

  • http://www.getresponse.com Maciej Buchowski

    @Matt: Matt, thanks for a comment. Organic list and adequate targeting are indeed the core to grow business. Also, current online environment provides so many legitimate ways to build an email list. I’d say: the sky’s the limit.

    @Rudi: Rudi, actually we offer a unique system to build a high-quality, permission-based email list. Here is a link to find out more: http://www.getresponse.com/features/getsubscribers.html.
    Please check also the video promo by clicking on ‘watch video’ button at the top.

  • Razvan

    ok… to generalize that… is… well… stupid.

    One of the best way to grow your business is to rent email targeted lists and put up a break-even marketing campaing for customer acuisition.

    if you mail to 1 milion prospects and get 10.000 new fresh customers that will buy from you like 5 times a year then you should definetly do that. And the figures that i stated here are low.

    Yeah.. is also stupid to buy lists from who knows what spammer. But to buy or rent lists from trusted companies that can deliver demografics and all sorts of infos for those prospects that’s WISE.

    Grow your business organically? Maybe you should reconsider what organically means

  • http://www.tonyclingan.com Tony

    I think the temptation in buying mail lists comes from the time it takes to build a list and the misleading claims made about how quickly it can be done

    It’s no big secret that many big name people use co registration leads in their mix for fresh leads but buying from the databases that offer you the opportunity to e mail 2 or 3 million people a day for $20-$30 Dollars is just asking for trouble

  • http://tctripadvisor.com Tian Chye Tan

    Your advice not tobuy email list very true. I personaly do not believe in buying such lists as I do not know how the vendor obtained the addresses.

  • http://www.getresponse.com Maciej Buchowski

    Guys, thank you for your comments.

    @Razvan: Please always keep in mind that people respond well to messages they asked for. Thus, it doesn’t really matter if you buy the list from trusted or spammy source, because it’s being sold again and again to various people and the quality of these lists is always very low.

    Razvan, I will always encourage people to grow email list organically as this is the core of permission-based email marketing and most importantly for marketers, the best way to achieve very high conversion rates.

    Renting email lists is a different topic, which shouldn’t be compared to buying an email list. By the way, we will consider writing another blog post regarding this issue and the differences.

    @Tony @Tian Chye Tan: Thank you for your comments. I hope it helps understand the huge differences in email marketing strategies and the way to do it right.

  • http://www.menshealthcures.com Ken

    Thanks for great information. I get so inundated with spam I would never think to abuse the trust of my organic list.

    By offering good newsletter or e-book to an opt-in list you can build an organic list that wants your information, and is more likely to buy from you.

  • Razvan

    Ok… let me put it to you this way.

    You have a product that can save people from death. ok? And your product really works on let’s say diabetes.

    And you’re telling me you shouldn’t rent an email list from a good medical publisher ’cause it’s not organically?

    Well maybe organically… one of youre relatives dies (wish it never happens), and after that you find on page 2 of google this remedy.

    How’s that feed? Good?

    If you’re product is really good. And it helps people. Why the heck shouldn;t i write a great sales copy and send it to those who need it?

  • Andy

    Razvan, renting email lists is a completely different topic, Maciej already mentioned it in his prior comment. If you do the list renting properly – it’s fine. But doing it right is not that easy. I’m ok with the list renting as long as:
    * the sender (list lender) has all the permissions to send commercial emails;
    * the content is relevant for the recipients;
    * sender allows to unsubscribe easily at any time;
    * The marketer (you) who rents the list from the sender doesn’t have an access to any single address from the list.

    When it comes to the list buying practice – it’s always wrong! And there are no exceptions here. Even if you sell product that solves global warming & world hunger problems, cures diabetes, MS and aids simultaneously – promoting this product with a bought list is not an answer.
    Trust me, If your product is great, people will find it and your email list will grow organically faster than you can even imagine. Moreover those lists will contain people who are really interested in your product.

  • http://www.bugreviews.com Ivan Lee

    I once bought an email list and the results do not like what I want.
    I am sure that the email I send will be considered spam by the recipient, now I prefer to use a gift or bonus to get email from visitor.