Editor’s Corner
THE DICEY PRICING OF DIRECT E-MAIL

Once again the opportunists are on the scene as technology rapidly creates more possibilities than the average business can take on or master. At least at the outset. The opportunists know that most companies have not captured e-mail addresses from their customers and prospects. Most mailing lists from traditional brokers do not have them yet either. Where is a business to go if they want to try out cybermail marketing?

Most e-mail lists that are available are collected by one of three ways:

First, there are clever technologists out there who know how to scavenge for e-mail ID’s. Their software can sift through everything online and create lists which are the equivalent of compiled lists in the offline world. However, there is relatively little information about the person behind the ID that is gathered with this technique. There are some universal givens: the user has a computer, a modem, access to an online service or the Internet. If the name came from a discussion list, then perhaps a certain interest area can be added to the record. Companies renting these lists can offer you names for a penny a piece, $500 minimum for a list of 50,000.

Next, there’s, what the direct marketing industry calls, an "opt-in" list. These are gathered mostly from Web site guest books or web site registration areas. I’ve heard of rates in the 10 and 15 cents an ID range.

And lastly, I came across the most professionally gathered e-mail list. A major magazine publisher for two technical magazines has captured e-mail addresses for subscribers who have agreed to accept commercial messages. These rent for 25 cents a name. Add on the cost of using the company’s only approved e-mail provider to send those out for you at 15 cents a name. Now we’ve hit a whopping 40 cents a message for an e-mail campaign! (I thought e-mail was supposed to be cheap.)

If direct e-mail is something you’d like to do, the best tactic, of course, is to capture your own list at your web site and make alliances with others for list swaps. All it takes is one in-house maven to handle your database and your list and then your e-mail campaigns will have the right price: zero cost per name.