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Email Marketing, Business & Monkeys

Purchased & Rented Email Lists Suck

June 5th, 2006 | by Ben

I just stumbled upon this very interesting article from Blackfriars’ Marketing, that compared Google Adwords to Email Marketing for one of their recent campaigns. Their conclusion was that Google worked way better. Their email marketing efforts basically only got a 0.3% response rate (and cost them about $100 per click). Ouch.

So why would MailChimp post a link that poo-poos email?

Because they rented their email list. When you purchase or rent
an email list (even if it’s "opt-in"), don’t expect to get any response
from it. The recipients on that list have no clue who you are, and they
didn’t give you permission to email them.

Is purchasing or renting an email list against the law, or unethical? Not necessarily.

But it’s definitely a waste of money, and will more than likely get you reported for spamming (not to mention it’s a violation of the MailChimp terms of use). Again, that’s because they didn’t give you permission to email them.

By the way, we’re not saying the guys who did the experiment did anything wrong. We’re so glad they actually posted their results, proving how worthless rented lists can be.

On a side note, I recently ran some stats on one of our MailChimp users with a list of over 60,000 recipients. He uses double opt-in for his sign-up process. Every campaign, he gets reported for spamming (from the very people who double opted in) by about 0.08% of his recipients! Most of the reports come from AOL users who have found it more convenient to click the "Report Spam" button, rather than clicking the actual "Unsubscribe Me" link provided in the email. One more reason to provide very prominent unsubscribe links at the top of your email, in addition to the footer (examples).

I compared that to another MailChimp user with a list of about 20,000 recipients, and who uses the single opt-in method. He does a great job of setting expectations on his sign-up page, and sends an email confirmation that tells people exactly what kind of emails they’ll get, and how often. Every time he sends, he gets a 0.25% complaint rate from AOL users.

How do we know they’re getting all these complaints? Because AOL sends our Abuse Desk an email alert, every single time an AOL user clicks that "Report Spam" button for a campaign that came from our system. We monitor those complaints across all user accounts. If anyone exceeds a certain threshold, we send a warning, investigate the account, and take any necessary precautions to prevent blacklisting and to protect the deliverability of our system.

So even if you run a completely clean, permission-based list, you’re gonna get spam complaints. There are some things you can do to prevent complaints, but they’re inevitable (hey, people forget, and we all get lazy sometimes). But if spam complaints are inevitable with permission lists, think how bad they are with purchased lists!

Our recommendation?

Build your own house list. It’s slower, but your response rate will be so much better. There are some tips for growing your house list here. Can’t wait that long? Look into list co-registration with relevant partner sites. Just don’t rent or purchase email lists. Even if they’re opt-in. Even if God himself sold you the list. If you do, just don’t use MailChimp.

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10 Comments

    • shahz says:

      I just got across your site and I have to say, you guys are by far the best..indeed, purchsed mail lists suck and a cheap trick to spam innocent people..I bet in the test that those guys ran, the 0.3% response rates came from people who didn’t know much about the email they recieved and just clicked it because they saw it in their inbox. Count that out, and the rate will be even lower..perhaps 0% at all..Personally, I just mark the email as spam when I get something from someone I dont know..You guys are pioneers of mail system as far as I can see your system..Can’t wait to get a hold of your system one day..You have a very bright future..Keep up the good work and keep us posted with these useful posts..

      Regards,
      shahz

    • purchasing email lists is not bad idea says:

      From the admin: I’m approving this “counterpoint” from the nameless individual, because I think it only proves my point.

      No, i don’t agree purchasing email lists or rented email lists is bad idea, email marketing is booming on internet and getting better results, number of internet user is increasing and very one are having multiple emails, and they are very much interested to get any information in there inbox.

    • Touché says:

      @purchasing email lists is not bad idea
      You’re making yourself (and your company too, which you linked to) look very bad. The article above just smashed to pieces, burnt to ashes and buried on the moon the point that you’re still trying to push through.
      Ignore the ignorant troll though. I replied so you don’t have to.

    • Elliott says:

      We sell a pile-em-high, sell-em-cheap e-commerce system. Back in the days before spam was the problem it is now, shortly after the web was invented, I wrote a script to harvest email addresses from web sites with order forms but no online purchasing facilities. We then emailed them to sell them our product. We did lots of tests with different wordings and subject lines. We learnt a lot about what kinds of subject lines get opened (or did in those days)…

      And the upshot of all this? Not only did we not sell any product but we got hate mail too.

      These days we put a lot of effort into helping our clients avoid having their email addresses spam harvested. We’ve joined the good guys!

    • Shannon says:

      What is your spam complaint tolerance rate? My list is complete opt-in too, but I still have some folks using the “Report Spam” button.

      “How do we know they’re getting all these complaints? Because AOL sends our Abuse Desk an email alert, every single time an AOL user clicks that “Report Spam” button for a campaign that came from our system. We monitor those complaints across all user accounts. If anyone exceeds a certain threshold, we send a warning, investigate the account, and take any necessary precautions to prevent blacklisting and to protect the deliverability of our system.”

      • Ben says:

        Generally speaking, our spam complaint threshold is about the same or slightly more strict than the ISPs’. So about one complaint per thousand recipients is acceptable.

    • Jay says:

      Disagree in some respect. I bought a list earlier this year and it paid for itself 100 fold. You cant throw out the idea all together of buying a list. In general, yes, buying a list of 10,000 random people will likely result in your emails being tossed into spam Heaven. However… the more specific you can get with your list and smaller coverage area, depending on your business, there is a greater possibility for you to reach people that might have heard about you or the type of service you offer but have never made contact with you and will open your mail… and thus a connection has been made. I am not in the business of selling or not selling lists… I am sure the guys that sell lists have numbers and blogs and all sorts of info to persuade you otherwise too. I guess I wont use mailchimp to send my lists..also…i noticed the mailchimp plan for 50,000 plus emails. Are these organic lists?

      • Ben says:

        @Jay – If you purchase a quality, targeted email list, then use it to send one-to-one messages to prospects (from *your* own server or CRM) about your business, then meh—I can see some value there. Still wouldn’t do it, but to each his own. As an email marketing service provider, the problem we have w/purchased lists is if you try to send a mass email to all of the recipients at once. That’s spam. To clarify, when we say that we have a price plan for 50,000 emails, that means if you have a list of 50,000 opt-in addresses, this will be the charge for uploading and managing in MailChimp. We’re not actually providing any lists (that’s against our terms of use, and more importantly, something we’re vehemently opposed to).

    • melanie says:

      Ben, I am very interested in this topic. We lease and sell commercial real estate, and we plan on purchasing your product to manage our e-mail campaigns. These will go to both existing clients, and potential clients. Much of our list has grown organically, from within, so we don’t anticipate complaints or issues with those people (possible opt-outs, but certainly not complaints). My question is, if we have a building for lease, do you really think it’s a bad idea to buy a list from a reputable company (e.g. Dun & Bradstreet) to target businesses located near that space, to let them know its available? I imagine residential brokers do this alot. Thanks for any insight.

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