Working the Back End

This is where the real money is made

[cyril kearney]

In Direct Marketing many companies make good money off their mailing list of their clients. They rent a list and mail out a catalog. The people that buy are extracted to a hotlist. This list is rented out a half-dozen or more times. They keep sending the buyers catalogs and each time they buy, the name gets rented again.

In email marketing names are usually rented in bulk for a very low price. They are rented to dozens and even hundreds of companies. Each name on the list is inundated with tons of spam. People react badly to this. To stay in business you must swear not to rent your list.

When you establish a privacy policy, you have an opportunity to distinguish your email list from your traditional mailing list. You can still promise not to spam but leave open your ability to rent your traditional mailing list.

How is your company dealing with this?

An email list may rent for $3-$5 a thousand. Traditional mailing list are renting for rates like $50 to $200 a thousand.

[mat_bastian]

those have to be some huge double opt in lists...

[Dante_Maure]

It can be far more profitable to proactively seek out joint venture partners with products and services attractive to your customer base than it is to rent your list out.

In the event that you are the one approached with such an offer, it's not uncommon to negotiate as much as 50% of the total profits gained from these campaigns while the partner pays for all the mailing expenses.