The Ugly Truth About Buying Email Lists

Shady SalesmanExperience, 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 bulk 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…

…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 the mail server and also got them fired by our web-based email provider.

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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By: Justin Premick
Director of Education Marketing

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49 Comments

  1. I know first hand about those email lists people sell you.
    Another great informative blog! Keep them coming.

    7/29/2008 10:21 am
  2. 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.

    7/29/2008 11:28 am
  3. 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.

    7/29/2008 12:41 pm
  4. 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?

    7/29/2008 2:47 pm
  5. 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.

    7/29/2008 11:35 pm
  6. 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.

    8/2/2008 2:17 am
  7. G

    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!

    8/2/2008 5:49 pm
  8. 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.

    8/4/2008 10:26 am | Follow me on Twitter
  9. Don Massey

    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.

    8/4/2008 2:35 pm
  10. 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.

    8/5/2008 9:19 am
  11. JonathanB

    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.

    8/5/2008 11:24 am
  12. Dan

    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

    8/5/2008 11:49 am
  13. 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.

    8/5/2008 6:41 pm
  14. 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.

    8/6/2008 9:29 am
  15. 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.

    8/7/2008 12:22 pm
  16. 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.

    8/7/2008 6:20 pm
  17. 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

    8/7/2008 9:11 pm
  18. 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.

    8/8/2008 10:19 am | Follow me on Twitter
  19. 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.

    8/8/2008 10:32 am
  20. 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.

    8/8/2008 12:32 pm | Follow me on Twitter
  21. 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?

    8/8/2008 4:08 pm
  22. 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.

    8/11/2008 6:24 am
  23. Mark

    great article, can you keep me posted?

    8/12/2008 12:13 pm
  24. Mark,

    Absolutely – the best way to stay posted on articles here is to subscribe via email or RSS.

    8/12/2008 1:27 pm | Follow me on Twitter
  25. A

    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.

    8/16/2008 2:43 pm
  26. probably is the safest way to start building your own list but it may
    take to long to build big list.

    8/19/2008 12:48 pm
  27. 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?
    :)

    9/8/2008 6:59 am
  28. david

    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.

    10/16/2008 10:25 am
  29. 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.

    11/29/2008 9:35 am
  30. There’s no substitute to building your own mailing list. Aweber’s advantage is the ability to add new features to help grow your list faster. Kudos on the post.

    3/22/2009 6:52 pm
  31. I was ask many time to buy a list but I never believed in buying some one ells privacy It is good to read abbot this infraction that could happen to me. Thank you for all this informations

    6/3/2009 11:47 am
  32. Jacky Fung

    I agree with this article.

    As even I try email broadcasting someone has communicated before, they sometime (low %) would report it as a spam…

    So, by just buying a new list without any evidence would surely be just a disaster to the marketers.

    ps. Hi aweber folks … Thanks for your great information and support..
    it helps a lot.

    10/19/2009 11:35 pm
  33. I had to laugh. SO TRUE about email lists!
    The best part is that image
    you chose.
    ahahahahahhaa….

    Good stuff.

    5/6/2010 10:45 am
  34. Been there. Done that. Several times.

    I have tried so many "so called" opt-in lists, as well as verified lists. Always a very poor if no return.

    Trying to find better options, but as always my own database does do better than any others.

    6/30/2010 10:39 pm
  35. Let’s say I rent one of those so called "targeted lists" I pay them to send only one message to 10.000.000 addresses for example.

    The email is short and its only purpose is to direct them to a squeeze page where hopefully they will be converted into an actual double opt-in subscribers, my golden AWeber list so to speak…

    Even a conversion of one per thousand would be a nice result…

    What’s your thoughts on that? Anybody try that one?

    7/21/2010 1:35 pm
  36. Chris,

    Sending email (or paying someone else to send it) to a non-permission list to get them to sign up to your AWeber-managed email list is not permitted.

    See the 5th & 6th items on the "Things You May Not Do With AWeber" list on our anti-spam policy page:

    http://www.aweber.com/antispam.htm

    7/22/2010 9:52 am | Follow me on Twitter
  37. Thank you Justin for bringing some clarity.

    I think I will just stay away from those things then…

    I am looking to build a business and not for some quick fix, I guess the answer will always boil down to GOOD CONTENT!

    I am happy I found this post.

    7/22/2010 12:37 pm
  38. Very valuable information, literally. Use your marketing budget wisely and always be weary of shortcuts, they very rarely put you where you want to be.

    8/18/2010 1:44 pm
  39. Tati Leoni

    Ok,what if email marketing is not a part of your company’s publicity but a big part of it. How else could you get mailing lists that matters?

    12/5/2010 5:31 pm
  40. Tati ~ There are many ways to find subscribers; to get started, here are six of the most popular!

    12/6/2010 10:36 am
  41. Tati Leoni

    Thank you Amanda,Im gonna check those out…

    12/6/2010 11:52 am
  42. WCP

    Wow, I was actually going to buy a list. I was checking out the different web sites seeing what they offer and their prices. All of the stuff listed here is true. They all say everyone is opted in double opt in. ect ect. I don’t know if it is worth it to try it but I am going to pass for now!

    3/1/2011 6:09 pm
  43. WCP,

    I’m glad that this was helpful for you, and that you found this article before you bought an email list. It’s simply not worth it.

    3/2/2011 11:07 am | Follow me on Twitter
  44. I agree with you.Some days earlier had a bitter experience with buying email list.The list did not work out ! Then in a blog,I had some discussion and knew that,That seller was a fake one ! so be sure not to be cheated when buying email list.

    4/19/2011 2:23 am
  45. There’s a better way to buy lists though. When you get a web site, blog or product attached. I mean, people enter and exist web businesses all day, if someone is selling their business/project on Flippa or other related sites, then it could be a good chance for you to get a list too :)

    That means the business is exclusively sold to you, I am not talking on PLR packages or a “replicate” business

    Think in perspective, get the whole story about something before making assumptions or decisions… and avoid putting a label on a specific strategy or concept just because that’s all you know about it.

    (In depth) research is required in everything we do, right? :)

    4/28/2011 2:06 pm
  46. Great information thank you. I have purchased two Email databases, one for specific businesses and one for cosumers. The business database worked well, the consumer one did not.

    7/24/2011 8:45 am
  47. Yes, getting email addresses is so hard.

    I am looking to find the email addresses of online computer stores to sell them my new products.

    Many of these companies, especially the big ones, do not list any email addresses, or often even phone numbers !

    10/23/2011 8:46 pm

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