WHY BUYING EMAIL LISTS IS A GOOD IDEABoost new customer growth by buying “quality” email lists
There are many misconceptions / myths about buying email lists, and for facts on this issue we recommend clicking this link:
Myths About Buying Email Lists – CLICK HERE
This page will focus on the #1 reason for buying email lists: positive ROI.
Of course, buying a low-quality email list is always a bad idea! On the other hand, a quality email list can provide a positive ROI, and saying yes to a positive ROI is always a good idea!
For example, let’s assume there’s a marketer who only gets 1 new customer for each 10,000 name email blast. Only one new customer means 99.99% of the 10,000 said no to the offer … with most probably deleting the email or not even opening it. Sounds horrible – doesn’t it? But, what if that 1 new customer had a LTV (lifetime value) of $2,500 … representing a ROI of 100+ percent? With that ROI it would be crazy to not execute a prospecting email campaign every single week.
Lets review more numbers … to help decide if buying an email list is a good idea. The first step is to calculate LTV … Lifetime Value of your average customer … meaning what is the average revenue (value) that a customer brings … over the typical lifespan of a customer? Once you know LTV and the email list cost, you can easily calculate ROI relative to CTR and CPA. The below hypothetical chart offers one example:
From the above chart you’ll see that buying an email list is always a good idea IF the following parameter are true for you:
LTV = $500 Minimum
CTR = .3% Minimum … just three-tenths of 1 percent
CVR = 10%
A positive jump any of the above 3 metrics will represent an even higher ROI.
Bottom-Line: Countless companies successfully grow their first-party opt-in data every day by using third party email lists. The craft is sending relevant content to qualified - quality email contacts, who are given the option to opt-in directly when visiting the marketer’s website or landing page. Email marketers that are clearly following CAN-SPAM Rules … with legitimate offers aimed at “qualified” email recipients … can gain a positive ROI when using a 3rd party email list, provided that their offer resonates with the email recipients.