Editor’s Corner:
Better To Build Than To Rent

Let's imagine that only twenty percent of those online subscribe to an opt-in e-mail list. (I chose this number because that's how many convert to opt-in status when an e-mail company I interviewed works on converting lists.) With 50 million online, that means 10 million e-mail addresses. Kind of small for direct marketing purposes when you think of all the marketers that want to use these lists.

Nearly half of the direct marketers in the Gruppo, Levey & Co. survey (see page 1) said they would not rent their lists. And with good reason! While "spam" lists may abound, opt-in e-mail lists will be in short supply. Since most marketers fear that spamming or an over supply of opt-in mail will cause list fatigue or attrition, e-mail lists are best held "close to the vest." If you worked hard to get e-mail addresses why give anyone else access to them?

Here's a quick case study that illustrates my point: A newsletter publisher built his own e-mail list of 3,000 names. He sent an announcement out with an order form to this list with a pre-release announcement for a report for $95 (full price would be $135). In a matter of days, the publisher received 150 orders, a five percent response rate. This is a hot list and he's not going to rent it. Would you?

Unlike postal mail where most addresses can be found on compiled lists, e-mail addresses are hidden. If you can develop your e-mail lists as your business grows you'll have a "creme de la creme" database. Don't get stuck in the e-mail equivalent of the Y2K problem: a database that doesn't have an available field for e-mail addresses.

E-mail marketing may be growing but not for everyone. The only way to make sure you have the currency to play the game is to build lists of your own.