You need people to email, and you need them quickly. Oh, and if you could make them pretty cheap, that'd be great, too.
That's the mindset many marketers find themselves in when they're on the phone with a list-purchasing company. Acting on that moment of desperation, however, will cause them more long-term (and short-term) harm than good. Yes, thousands of contacts are a credit card swipe away, but your email marketing program -- a critical part of a well-rounded inbound marketing strategy -- will seriously suffer. Curious why purchasing email lists is a legitimate email marketer's kiss of death? Read on, my friend ... oh, and bookmark this list of squeaky-clean and effective ways to build your email list.
Methods of Acquiring an Email List
Before we get into the pitfalls of purchasing an email list, let's review (for those who are new to the game) three of the most common ways marketers acquire contact lists to email:
1) Buy a list. You work with a list provider to find and purchase a list of names and email addresses based on demographic and/or psychographic information. For example, you might purchase a list of 5,000 names and email addresses of people with children who live in a certain city.
2) Rent a list. Also working with a list provider, you identify a segment of people to email -- but you never actually own the list. As such, you can't see the email addresses of the people you're emailing, so you must work with the provider to send out your email.
3) Generate an opt-in list. Someone voluntarily gives you their email address either online or in person (at a trade show, for instance) so you can send them emails. They may pick certain types of email content they wish to receive, like requesting email alerts when new blog posts are published. Opt-in email addresses are the result of earning the interest and trust of your contact because he or she thinks you have something valuable and helpful to say.
When it comes to rented or purchased lists, you may come across vendors or marketers who say, "this email list is totally opt-in!" This means that the people on the list opted in to an email communication from someone at some point in time -- like the list provider, for example. What it doesn't mean, however, is that they opted in to receive email communications from your business. This is a critical distinction, and the next section of this post will go into more detail on why this type of "opt-in email list" (should be read with air quotes) is not a good idea for your email marketing program.
Why You Shouldn't Buy Email Lists
So now that I've told you a few ways to acquire email lists, I'm going to tell you why you should acquire them through method number three above -- the opt-in method in which you generate your list of email contacts!
Reputable email marketing vendors don't let you use purchased lists.
If you're using email marketing software now or plan to in the future, you'll find that reputable companies will insist that you use opt-in email lists. You might be saying, "I'll just use a non-reputable email marketing vendor." Wrong again. Using ESPs that don't require their customers to use opt-in email lists suffer poor deliverability if they're using a shared IP address. In other words, one customer's ill-gotten email list can poison the deliverability of the other customers on that shared IP address. You're going to want to hitch your wagon to the light side of the email marketing force if you want your emails to actually get into inboxes.
There's no such thing as a good email list that's for sale.
Unless you're in the process of acquiring an entire company, you're not going to come across a high quality email list you can purchase. It being for sale at all means that the email addresses on it have already been ripped to shreds by all the other people who have purchased that list, and emailed the people on it. Any email addresses that once had value have since been spammed to the ends of the earth!
If someone actually had a good email list, they'd keep it to themselves because they don't want to see the value of those email addresses diminished by letting other people get their hands on it. Think about it -- would you sell or share with another business the email addresses of those who have voluntarily opted in to receive email from you? I didn't think so.
People on a purchased or rented list don't actually know you.
I referenced this in the previous section of this blog post, but it's worth going into some more detail on this subject. Rented and purchased lists are sometimes scraped from other websites, which, I think we can all agree, is a dirty way to acquire email marketing lists. But often list purchase and rental companies will tout that their lists are opt-in. Sounds great, right?
Not really, because it means that the contacts have opted to receive emails from, say, the list-purchasing company -- not your company. Even if the opt-in process includes language like, "Opt in to receive information from us, or offers from other companies we think you might enjoy," the fact is the recipient has never heard of your company, and does not remember opting in to receive emails from you. And that means they will mark you as SPAM ... which takes us to our next point.
Your email deliverability and IP reputation will be harmed.
Did you know that there are organizations dedicated to combating email SPAM? Thank goodness, right? They set up a little thing called a honeypot, which is a planted email address that, when harvested and emailed, identifies the sender as a spammer. Similarly, things called SPAM traps can be created to identify spammy activity; they are set up when an email address yields a hard bounce because it is old or no longer valid but still receives consistent traffic. Fishy, eh? As a result, the email turns into a SPAM trap that stops returning the hard bounce notice, and instead accepts the message and reports the sender as a spammer.
If you purchase a list, you have no way of confirming how often those email addresses have been emailed, whether the email addresses on that list have been scrubbed for hard bounces to prevent identifying you as a spammer, or from where those email addresses originated. Are you really willing to risk not only your email deliverability, but also the reputation of your IP address and your company? Even if you find the light after purchasing or renting an email list, and decide to only email those who have opted in with your company, it will take you months (or maybe years!) to get your Sender Score up and rebuild the reputation of your IP ... and your brand.
Because you're not a jerk.
How do you like it when you get an email in your inbox from a company you've never heard of? I bet that's not the kind of company (or marketer) you want to be. If someone didn't ask to hear from you yet, it doesn't mean they won't want to hear from you later. It's your job to prove to them -- through helpful content and valuable offers -- that they should stay up to date with your company via email. If you force your email content on anyone too early, even if you know in the depths of your soul that they're a great fit for your products or services, you will preemptively lose their trust and their future business.
What do you do to generate legitimate, opt-in email addresses for your email marketing program?
Image credit: 401K


Joanne Black 1:10 PM on May 22, 2012
Clients buy from people they know. Sales is not a numbers game of cold emails. That's exactly the same as a cold call. The relationship seals the deal.
Built your own list of sales prospects and market to them with relevant content. No more cold calls and no more cold emails.
It's a waste of time and money.
Jon Nugent 1:16 PM on May 22, 2012
Purchasing email lists is NOT always a bad idea. The recent issue of B2B Marketing describes how companies are using email paid lists.
There is a case study on SAP and it's use of paid email lists. The use of paid lists is not a substitute for home grown lists but another arrow in our marketing quiver. The case study outlines those caveats that companies should consider when paying for lists.
Bob McCarthy 1:31 PM on May 22, 2012
There no question that your own opt-in list is the best list you can have. That’s the case in email and direct mail.
But that doesn’t mean that all email lists are a bad investment. Cold email lists can play a role in the lead acquisition process.
When using email, take the same tact you would use with direct mail. Try several lists and see which produce the best response or lowest cost per lead. Then roll out with the winners.
But go in with your eyes open. Understand that your response will never be as good as the response you get from your own list. Understand that there are some truly junk email lists but there are many others that are legitimate. Understand that legitimate lists will never release the list to you.
It’s too simplistic to say that all email lists are a bad idea.
Sue Garrison 1:40 PM on May 22, 2012
Although there are some good "buyer beware" guidelines here, it's not true that there's no such thing as a good email list--nor is it true that a company with a good opt-in list would necessarily keep it to themselves. (Money talks!) List quality varies greatly, however, so it's wise to do your homework beforehand and test the list.
Tracy 1:40 PM on May 22, 2012
Thanks for a really well written blog post. I always knew it was a bad idea to buy a list but sometimes it is hard to explain to customers why it's a bad idea! We did get persuaded to do it once a few years back for a restaurant we work with - against my better judgement and never again. Went to a reputable list-renter (as reputable as we could find) but it was not a successful mailing and we did get a complaint that the email was received "10 times" by one recipient. The "reputable company" said it couldn't possibly have happened but we were out of control and the client's brand was on the line. The response rate was very low and resulting bookings neglible. Never again. Ever!
John 2:18 PM on May 22, 2012
Corey (and others), any recommendations on tracking/benchmarking Sender Score?
Paula Johnson 2:18 PM on May 22, 2012
Great article. Too bad the clueless companies that keep emailing me wildly off-base offers likely won't read it!
Lionel Jerrard Carter 3:33 PM on May 22, 2012
I would not purchase a list for multiple uses, but what about sending a 1 time top of the funnel offer to a list that fits your buyer persona? Any one that downloads your TOFO will opt in to your natural grown list. This to me is more of a hybrid between traditional and inbound marketing. Like advertising an ebook.
Lynn Dalsing 4:11 PM on May 22, 2012
Corey, these are some great points. It's important to remember that the only company a subscriber has given permission to email them is the company that they opted in with. That company is the only one who should email them.
It is possible to send stand-alone email ads, but they need to come from the original list owner and need to follow email marketing best practices. We also covered this topic over on our blog: http://blog.ividence.com/en/archives/why-buying-or-selling-email-lists-doesnt-work
Sharon Brown 4:12 PM on May 22, 2012
I totally agree that buying email lists is the worst thing you can do. People treat that as spam, and you gain far more haters than likers.
I give away genuinely helpful gifts to help build my list of people who want to hear from me. When I show people that they come first and that I'm offering for free something that can really help them solve a problem or get something started . . . then they are happy and want to keep hearing from. It's a win-win situation. You help other people, and at the same time, you are helping yourself. And that's a great feeling :)
Sharon
Professional Courses 1:43 AM on May 23, 2012
Precisely the reasons we don't buy email lists. We have cultivated our own lists through contests, fan pages, twitter conversations, blog subscriptions etc. In fact, we make it a point to mark to any email we receive as "Spam" so that it discourages "result-oriented" marketers to get that sting! True, it take some time (honestly, a long time!) to build an email list but its always worth it! Another way to build email list is to simply ask your contacts and business associates to opt-in for your newsletters or blog updates. Then, run a referral contest and make use of their goodwill to grow your list! Simple but effective. Instead of spending $$$'s on an email list, its better to spend $100, get an awesome giveaway and give it to the person or contact who gets you the most referrals. It worked well for us!
Couponliker 12:54 PM on May 23, 2012
Great article! And we agree- cold calling and emails can distance customers! Companies should instead find a target market, then offer great deals and customer service- if you find customers who want your services, they will willingly give you their contact information- win-win!
Mike Pierce 1:36 PM on May 24, 2012
I LOVE INBOUND MARKETING as much as anyone on here. No question that the inbound leads I've gotten have been a much higher quality. However, those of us at start ups and small companies can't bank the whole farm on Inbound. Sure, one day we'll grow up to be dominant players in our niche and people will come flocking our way. But, it'll take a while.
With that in mind, I think it's hurtful and a waste of time to write articles beating up COLD tactics (cold calls, cold emails, direct mail). This article shouldn't be about 'Pretending Kittens Die' but rather what are the best practices we can use when we have to resort to outbound.
Purchasing an email list might not be ideal, but it's done daily. And if you do it, be smart about and use some tact. Don't hit the list 5 times in a 72 hour period. Perhaps 2 emails over a few weeks would be good. And put some triggers in there. If someone clicks on a link in the email or opens it for that matter, trigger another email right away to try and send them to a landing page or even place a telephone call to them.
Don't beat up COLD tactics, there are many of us (and I would bet HubSpot early on was included) that have to cold call and cold email daily. By writing these types of articles you scare folks away from performing COLD tactics and instead leave them sitting there wondering "What the hell do I do? Try and build an opt in list in the next 2 days?"