Methods of Email Marketing: Building Email Lists

Many companies are successfully marketing themselves through email. But if you aren't careful, you could end up causing more damage than good. What can you do to make sure your marketing efforts are accepted, not scorned?

by Al Bredenberg Senior Consultant, Enterprise Interactive

Many companies are hesitant to try e-mail marketing because of the stigma associated with spam — unsolicited e-mail marketing. And I agree that this is a marketing method fraught with dangers.

One company president called me for help after naively hiring a bulk e-mail company to send out an ad for his product. After the mailing went out, his company received thousands of complaints from angry Internet users. Someone rigged up a robot that called their toll-free number over and over for three days. When the president called the bulk e-mail company for help, he found their number had been disconnected.

Why Not Spam?

I personally think unsolicited bulk e-mail violates some important ethical principles. Unlike direct mail (the postal variety), spamming hijacks resources that belong to others.

Beyond ethical considerations, though, spamming exposes a company to considerable business risks. The spammer faces the possibility of lawsuits, technological retaliation (such as e-mail bombs) and losing their Internet access and Web site — not to mention the damage to the company’s reputation.

Many business people who have been accused of spamming take umbrage at being labeled that way. “I’m not a spammer — I have a legitimate offer!” and “I targeted my mailing. It’s not spam!” are two common objections.

But the crucial factor is not what you, the marketer, think about your e-mail effort — it’s what the recipient thinks. On the Internet, the recipient has the power to take action against you, and if that person thinks you’re sending spam, you could be in trouble.

In view of the risks involved, as well as the ethical concerns, I recommend this policy for building e-mail lists:

Nobody should be placed on an e-mail list without their explicit permission. And nobody should have to ask to be removed from an e-mail list they never asked to be on in the first place.

That means building all e-mail lists on a strictly opt-in, or voluntary, basis. Rather than restricting you, choosing the permission-based route frees you from the hassles that go with spamming — the flame mail, losing your ISP, having to hide your identity, the constant risk of a lawsuit. Ethical marketers have found many ways to use the e-mail medium to get their message out to the Internet audience.

Methods of E-Mail Marketing

Because our company offers e-mail marketing consultation services, I receive many calls and messages from people who want to “rent” e-mail lists that will reach this or that audience. But the best list is not the one you rent from someone else — it’s the one you build in-house.

Building e-mail lists is not necessarily easy. You’ll have to commit yourself to spending time and money to promote your list and gain an audience. You need to think about technology — What software will you use to manage your list or lists? How will you integrate e-mail addresses with your existing marketing database? How will you host and send the e-mail messages? How will you handle bounces and bad addresses? You’ll have to devise mechanisms for acquiring addresses — perhaps on Web forms, product registration forms or coupons.

You’ll also need to keep a clear head when it comes to sending mail to your list. Many people view their e-mail boxes as an intensely personal and private space. Think of your e-mail list as a way to build a trusting relationship with your online audience. Make sure that your mailings respect that relationship — don’t abuse it by sending out inappropriate material.

Here are the primary types of in-house e-mail lists marketers are using today:

1. In-house commercial opt-in list — An opt-in list developed specifically to promote the company’s own products and services. You might also use this kind of list to carry targeted and relevant messages from outside advertisers.

2. Announcement list — Employ this kind of list to send out special company news — new product announcements, news releases, personnel changes or special offers.

3. Newsletter or e-zine — An editorial effort designed to serve your special audience on the Internet. A newsletter should be content-rich, but can also carry promotional messages from your company or from outside advertisers. If you’re consistent in sending it out and if you offer truly valuable, high-quality content, an e-mail newsletter can help position you as an expert in your field and thus serves as an excellent tool for building awareness.

4. Press contact list — A specialized list of journalists and editors who cover your market. This might be a small list and might grow slowly, but it can yield tremendous results in gaining free publicity for your business. Make sure that you ask permission before placing anyone on your press list. And learn how to write an effective press release.

Besides building your own e-mail lists, it’s certainly worth it to consider buying advertising on others’ lists. The most commonly available e-mail media are:

1. Commercial opt-in lists — These are lists compiled by others and available “for rent.” I put “for rent” in quotation marks, because the owner or broker won’t actually give you a copy of the list. You’ll send them your ad and pay a fee, then they’ll send it out to their list. I’ve put together a directory of opt-in lists at http://www.copywriter.com/lists/adlists.htm — this directory is by no means comprehensive, but it’s constantly growing.

2. E-mail newsletter sponsorships — Many e-zines, and some e-mail discussion lists, accept in-line advertising (text banners) and classified ads. Just be aware that many e-zines are of poor quality or may not reach your target market. Again, I have a list of electronic newsletters that accept advertising at: http://www.copywriter.com/lists/ezines.htm

If you buy e-mail media, it’s a good idea to check out the list owner carefully. Make sure you are dealing with a responsible company, not a fly-by-night operation. And confirm with them exactly how their list was built — accept true opt-in only.

Al Bredenberg is senior consultant at Enterprise Interactive (http://www.enterprise1.com).

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