The Ugly Truth About Buying Email Lists
Posted by Justin Premick
Experience, as the saying goes, is the best teacher.
Unfortunately, sometimes that experience is really painful.
This is never more true than when a well-intentioned business, eager to grow, gets suckered into a “quick fix” by someone offering them an inexpensive “shortcut” to building their email list.
I recently came across an example of someone who learned a hard lesson about email marketing, list-building and email deliverability…
Buying an Email List Is An Awful Idea
I can already hear a lot of you saying,
“Yes, yes, we all know… don’t buy email lists, they’re not good prospects, they don’t know you and never gave you permission to email them, blah blah blah…”
I know it sounds like I’m beating a dead horse here.
After all, buying email lists is so… 1999. Right?
Unfortunately, for new email marketers, it’s not always obvious what is and isn’t a bad idea.
Some Companies Prey On These New Email Marketers
They’ve learned there’s money to be made by offering new email marketers a “shortcut” to building their own subscriber lists.
So they compile email address lists and advertise them as…
- “Targeted”
- “Opt-in”
- “Verified”
- “Clean” (shouldn’t that be a clue that purchasing lists is inherently dirty?)
- “Real Time”
…and a whole lot more.
What those companies don’t advertise are the consequences of sending to purchased email lists.
One Company Learned Those Consequences The Hard Way – And Turned To The Internet To Share Their Lesson
Javelin Marketing, a marketing/consultancy firm in the financial advising sector, got lured into buying such an email list (of supposed financial advisors).
No doubt they expected to find their message well-received by many of those advsiors, and to quickly grow their prospect list as a result.
As you might expect, it didn’t turn out quite that way:
“…upon emailing to 100,000 of the records, 85,000 bounced, clogged up our mail server and also got us fired by our web-based email provider. Lesson learned.
“Don’t give business to the pushers. Develop your own marketing to build your opt-in list. There’s no quick fix.”
Key Quote: “There’s No Quick Fix.”
Attracting subscribers is a deliberate process.
The only thing you’re really buying when you buy an email list… is a massive headache.
Because that’s what you end up with after dealing with the damage that purchased email lists do to your email deliverability and your reputation as someone doing business online.
OK, I’m climbing down from my soapbox now…
All kidding aside, I know most (hopefully all) of you realize what a bad idea it is to buy email lists.
But for those who don’t, or who want to see what the real-world consequences are, Javelin provides a classic example.
Please, when someone asks you about buying email addresses, point them here so they can see why it Just. Doesn’t. Work.
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29 Responses
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Haywood
July 29th, 2008 at 10:21 am
I know first hand about those email lists people sell you.
Another great informative blog! Keep them coming. -
Codrut Turcanu
July 29th, 2008 at 11:28 am
Ha, ha..
These type of offers are usually similar to those about "targeted traffic" or get "10,000 hits for a one-time $49 fee".
If you’ve seen those, you already know what I mean.
Buying leads and/or targeted traffic is another way to throw money hoping quick fix results.
There’s NO quick fix formula on the Internet, or if it is, then it won’t last more than a day.
We get what we pay, so pay close attention to whatever you’re buying these days.
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Chris Lockwood
July 29th, 2008 at 12:41 pm
Good article. Even if there were no spam laws, the obvious question is if these lists are any good, why are companies selling them rather than just sending offers to them?
I don’t know anyone who has built a list who would be willing to sell it like these companies do.
Too bad the constant stream of new people coming online aren’t always able to see what a bad idea this is.
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Shirley George Frazier
July 29th, 2008 at 2:47 pm
What a painful lesson for that company and a great lesson for those of us who’ve considered buying a list as well as those who vow never to rent one.
As a snail mail example that parallels this story, I remember working as a temp for a company that rented a mailing list and seeing the thousands of returned envelopes from their efforts. It was overwhelming and an obvious waste of money.
AWeber has made the task of collecting Emails super easy, and the investment cost is well worth it. Can you imagine trying to collect this data on your own?
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Michael Davis
July 29th, 2008 at 11:35 pm
I totally agree. My biggest problem with obtaining email lists from someone or some other company is that the individuals on these email lists answered an ad that could be vastly different from I am trying to sell them! Thus being my main reason for working on my own email list since I want my subscribers to genuinely want what I have to offer.
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Steven Vrancken
August 2nd, 2008 at 2:17 am
I do not agree.
In Belgium, there are some really good and clean services, and they give good e-mail lists, with good results, they sent the mail you give to them.
I do not believe in good / bad - vision; not all the email lists you buy are good, not all of them are bad. IN my opinion, it just depends, nothing more, nothing less.
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G
August 2nd, 2008 at 5:49 pm
Yes, I agree completely.
Never buy any list of E-mails!
I learned my lesson many years ago.
It was only a small list of 1000 people, but I saw that only 20 received my E-mail, without to purchase anything.
Build your list for Free is the best way!
It is not a fast process but it is a strong way!
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Justin Premick
August 4th, 2008 at 10:26 am
Hi Steven,
Thanks for presenting a dissenting opinion!
What you’re referring to, where someone else sends an email promotion on your behalf to his/her list, is commonly called list rental. What I’m referring to in my post above is purchasing a list of email addresses and assuming ownership of that list as your own.
That said, I and numerous other email marketers disagree with you, and feel that list rental is simply a poor tactic. It’s fraught with risk to your reputation as a sender of email (and in turn, your deliverability) and yields a poor return compared to building your own subscriber base organically.
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Don Massey
August 4th, 2008 at 2:35 pm
I was in direct mail for several years renting a lot of direct mail "lists". What I learned with mailing lists is directly applicable to email lists.
In the direct mail scam world are people who pull lists from telephone directories and sell them as "hot prospects". This is the same as harvesting emails by having bots roam the Internet.
I found the only lists that worked for me were those who had purchased similiar products or had an interest similiar to what I was selling.
All other lists were duds!
So the lists (both direct mail and email) that work are buyers want a product like yours or have purchased from you before.
In goes without saying my best returns were the lists of my own customers. The conversion on those were 10 times or greater than those of great lists that I found.
And there is nothing new under the sun. Spam laws were passed. Before it was "Do not Call" legislation. No one could ever get Do Not Mail lists legislation started. Why? It is so expensive to mail and if someone is really sending "Junk" mail they go out of business. Junk mail kills itself.
Junk email does not because it is cheap cheap cheap and just as ineffective.
But the newbies in Internet marketing don’t know any better.
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Chris Desouza
August 5th, 2008 at 9:19 am
I disagree to an extent. There are instances when a competing company buys another, eg Wal-mart buys Target along with its customer base. When the company which was bought loses its entity in the acquisition process, the customer list is brought into the fold.
Obviously, in this scenario, the customers are notified of this action.
Acquiring customer lists during acquisition of company assets is an exception.
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JonathanB
August 5th, 2008 at 11:24 am
In general, the article is correct — there’s no magic bullet — but there are plenty of lists out there that DO work, it’s just VERY unlikely that new internet marketers will know what to look for.
Who owns the list?
Reputable national magazines, trade groups, charities, seminar lists — there are thousands of properly built lists that the owners would like to monetize further.
Look for: Owner must approve your mailing and one-time use.What data is provided?
Sort by dates added to list; HOW was the list built - subscribers?, warranty cards? etc.Sponsored or unsponsored mailing?
If the people on that list wouldn’t know who you are, i.e., you’re not a national brand, then you need to be introduced by the list owner.It’s not rocket science, but you DO have to learn how to do it right, and then read up on Open Rates even when you have a quality list.
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Dan
August 5th, 2008 at 11:49 am
Yup, I agree.
A long time ago, I bought those DVDs full of harvested email addresses and was thrilled (at the time) to know that I had the whole AOL databse in my hands and could mail out to them.
Wow, that was SOOO pre-Aweber days for me, and not only was it bad marketing, but it was also a lot more expensive because their mailer was more than Aweber, plus the cost of buying those lists was high,too.
For the total investment of 800 I spent a long time ago, I could have done 30 -50 Ezine solo ads, paid advertisements, and built a real list using Aweber.
Buying lists is actually the HARD way out.
I’m a big Fan (and Beta tester) of Aweber, and I reveiwed it here
http://www.danielmcgonagle.name/product-reviews/aweber-review-bonus-and-videos
Maybe I’m drinking the Aweber Kooliad, but I also have Aweber’s blog snippet on my blog as well, that’s how much I think of Aweber, and their widget works better than Ezinearticles.com’s blog widget,figures..
Thanks for the post
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Flora Morris Brown, Ph.D.
August 5th, 2008 at 6:41 pm
Thanks for sharing the downfall of buying email lists. As with all other "quick fix" offers on the Internet, buying email lists is definitely asking for trouble.
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Alex Cole
August 6th, 2008 at 9:29 am
Great article…except the important part is missing- what does a new marketer DO to build a list? How can you market without STARTING? If not buying lists (which I fully agree with) then offer examples of what TO DO. It would make discussion more lively, I’m sure, and would be much more useful.
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Jodi Kaplan
August 7th, 2008 at 12:22 pm
Absolutely, do not BUY email lists. If you do rent, rent carefully… use lists of subscribers, seminar attendees, associations, etc. As Dan said, you want people who have already bought something similar.
To answer Alex’s question, you build your own list by driving traffic to your site, offering a white paper, a book, or something else of perceived value, and asking for the opt-in. You drive traffic by writing articles, commenting on blogs, sending press releases, using AdWords, etc. etc.
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Peter Gold
August 7th, 2008 at 6:20 pm
I think the view of *never* buy a list is somewhat simplistic and utopian.
Writing a white paper and then sending out PR is surely SPAM as the recipients most likely do not know who you are. However, if they are an Engineering magazine publisher and you are an Engineer are you saying this is not SPAM? If so, then surely buying a list of opt-ins from the same Engineering publisher of readers who have requested information from the third party suppliers of the publisher is acceptable??
Aweber is proving to be a fantastic tool and works very well for people that subscribe but more ways of building your list would be really useful to add to the mantra ‘Never buy a list’.
Rob Nixon has a nice way of building a list which involves cold calling; kind of telephone SPAM although they get sent a letter and have to subscribe to get further details.
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Brian
August 7th, 2008 at 9:11 pm
While it definitely takes longer to build your own lists, the payoff is well worth it. When people like Robert Allen talk about being able to generate thousands of dollars in 24 hours, that’s how they do it, folks.
They mail to their lists.
Done properly, Email Marketing is a powerful tool
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Justin Premick
August 8th, 2008 at 10:19 am
Peter,
if they are an Engineering magazine publisher and you are an Engineer are you saying this is not SPAM?
That’s really up to them as the recipient, isn’t it?
surely buying a list of opt-ins from the same Engineering publisher of readers who have requested information from the third party suppliers of the publisher is acceptable??
In short, no
It’s important to realize that email lists are not valuable. They’re not, in and of themselves. What’s valuable is the attention of the people behind the addresses on those lists and the relationship you have with them.
And you have to build those things. You can’t buy them. When you purchase a list, you get neither of those things. All you get are a bunch of email addresses of people who are going to report you for spamming when they start getting email from you out of the blue.
Buying lists is a rotten deal for the people on the list and for the person buying the list.
Thanks for the tip to include some list-building ideas. We actually publish quite a bit on list building. Check out the tag cloud in the sidebar for posts on that and other email marketing topics.
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Peter Gold
August 8th, 2008 at 10:32 am
Justin
I don’t disagree with you but what are your thoughts on Jodi’s comment about renting lists? And what do you see as the difference? I often see claims of what I think are rental lists where Seller X maintains the database e.g. an industry mag but based on feedback from others, response rates are poor and bounce rates high.
I think the seminar attendee lists make a lot of sense but still seems to sound like list buying; albeit focused.
Thanks for your response.
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Justin Premick
August 8th, 2008 at 12:32 pm
Peter,
I think we need to clarify that renting and buying are not the same thing.
"Renting" a list is email industry slang for having the list owner send an email on your behalf. Unlike buying an email list, when you rent you don’t at any time take possession of the actual list.
While in theory list rental could help you to market a product or build your own list, in my professional opinion the money spent on it would be far better spent elsewhere - say, on an AdWords campaign.
It’s important to keep in mind that even with list rental, spam complaints can and do occur, and that those hurt not only the reputation/deliverability of the sender of the message (the list owner), but also your company as the one being advertised.
Even though you’re not sending that message, if your site is linked from within it, ISPs can use complaints against that message to decide whether to block email from, or linking to, your company.*
This is what I was referring to (albeit not in as much detail) when I responded to Steven’s comment above.
* Incidentally, this is also one of the perils of offering an affiliate program for your products. When it comes to email, affiliate marketing can be highly similar to list renting - the affiliate marketer (who owns the list) emails about a given product, and people purchase that product or sign up for the product owner’s mailing list.
The big difference to me between outright list rental and affiliate marketing is that the affiliate is paid on conversions, not on the mailing itself. Affiliates have a greater incentive to make sure that their subscribers are interested/responsive to the content/promotions they send, since if they’re not, the affiliate doesn’t make sales, and thus doesn’t get paid.
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Alex Cole
August 8th, 2008 at 4:08 pm
Are we talking subjective SPAM or CANSPAM compliance? Yes, compliant emails can be identified and reported as SPAM- but isn’t the false reporting also a crime? Has anyone been sued or fined for reporting falsely?
CANSPAM compliance is easy. It applies only to solicitations for business (ie advertising) and requires a physical address of the sender, and an easy way to unsubscribe.
So if I offer something free for a certain list of people is SPAM even a consideration?
And if I deliver the freebie from a webpage that happens to have ads on it for other (priced) products- well, explain what the problem is with either the email free offer or the download page?
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Peter Gold
August 11th, 2008 at 6:24 am
Justin
Thanks again; I did think renting sounded the same i.e. SPAM but we don’t hear that term so much in the UK. I’ve not bought or rented lists and feel this has been the right decision now based on this post.
I do use Adwords and have found it a great way of getting people who are actually interested in what we offer.
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Mark
August 12th, 2008 at 12:13 pm
great article, can you keep me posted?
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Justin Premick
August 12th, 2008 at 1:27 pm
Mark,
Absolutely - the best way to stay posted on articles here is to subscribe via email or RSS.
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A
August 16th, 2008 at 2:43 pm
It’s much better to take out ad space in someone else’s mailing list who has an opt-in list than to purchase an email list. It’s also better to form relationships with other list holders and then offer to provide articles to publish in their online newsletter. You’ll get better exposure that way.
I once had a client who did buy an email list and she did get business out of it. She bought it after we stopped working together. I didn’t want to go that route and she did…. which is fine with me because I can keep looking at myself in the mirror and like what is looking back at me.
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matjaz krajnc
August 19th, 2008 at 12:48 pm
probably is the safest way to start building your own list but it may
take to long to build big list. -
Haroun Kola
September 8th, 2008 at 6:59 am
I’ve always believed in this philosophy, and live by it but now I’m working for a company that wants me to search the net looking to buy a database for the product it’s selling.
My dilemma is that I believe in the philosophy of building your own list but to do this task properly, I have to find the list of targetted leads and pass the info on.
Tough, hey?

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david
October 16th, 2008 at 10:25 am
Alex cole has hit the nail on the head, what does someone new to the business DO to build a list?
They may have a good product to sell but little or no knowledge of internet marketing or even many of the terms used in blogs such as this.
I have friends who ask "what is this HTML thing people talk about" but they are not idiots, just people who have bought a modern computer which does everything for them and have thus never had to learn the nuts and bolts of how it all works.
For them there is not only the lack of knowledge to overcome but also the inate fear that if they do try something they will make some simple mistake and end up with a disaster.
Maybe there is a good e-book out there which explains it all in non-techno speak, but I have yet to see one. -
Patricia Reszetylo
November 29th, 2008 at 9:35 am
Better to JV with somebody in your niche who already has a list. They have a relationship with those people, and can say, "Hey - this is something you need to know about" and the list listens.
Email Tips.
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