Who pays for spam?

A couple weeks ago, I published a blog post about monetizing the complaint stream. The premise was that ESPs could offer lower base rates for sending if the customer agreed to pay per complaint. The idea came to me while talking with a deliverability expert at a major ESP. One of their potential customer wanted the ESP to allow them to mail purchased lists. The customer even offered to indemnify the ESP and assume all legal risk for mailing purchased lists.
While on the surface this may seem like a generous offer, there aren’t many legal liabilities associated with sending email. Follow a few basic rules that most of us learn in Kindergarten (say your name, stop poking when asked, don’t lie) and there’s no chance you’ll be legally liable for your actions.
Legal liability is not really the concern for most ESPs. The bigger issues for ESPs including overall sending reputation and cost associated with resolving a block. The idea behind monetizing the complaint stream was making the customer bear some of the risk for bad sends. ESP customers do a lot of bad things, up to and including spamming, without having any financial consequences for the behavior. By sharing  in the non-legal consequences of spamming, the customer may feel some of the effect of their bad decisions.
Right now, ESPs really protect customers from consequences. The ESP pays for the compliance team. The ESP handles negotiations with ISPs and filtering companies. The cost of this is partially built into the sending pricing, but if there is a big problem, the ESP ends up shouldering the bulk of the resolution costs. In some cases, the ESP even loses revenue as they disconnect the sender.
ESPs hide the cost of bad decisions from customers and do not incentivize customers to make good decisions. Maybe if they started making customers shoulder some of the financial liability for spamming there’d be less spamming.

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Clarification on monetizing complaints

There has been quite an interesting discussion in the comment stream of my earlier post about monetizing the complaint stream. I’ve found all the perspectives and comments quite interesting.
There is one thing multiple people have brought up that I don’t necessarily see as a problem. They assert that this idea will only work if all ESPs do it because customers can just say, “Well, Other ESP will let us do this and not charge us.”  I don’t quite understand why this is an issue. Customers already do this.  In fact, sometimes the assertion is actually true.
There are ESPs that let customers spam. There will always be ESPs that let customers spam. This is not new. Changing a pricing model isn’t going to change this.
As I was envisioning the monetization process, ESPs who wanted to do this could actually offer multiple tier pricing. The customer can choose a lower price point for their overall mail program, while assuming the cost of their recipients complaining. Or the customer can choose a higher price point and let the ESP absorb the cost of handling complaints. In either case, the customer would still have to meet the ESP’s standards for complaints and comply with their TOS.
Clearly I’m seeing the idea and industry differently than a lot of my readers. I’m interested to hear the thought process behind this so I can better understand the objection.
 
 
 

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Spamming ESPs: the followup

Campaign Monitor contacted me about yesterday’s post. The phrasing I picked out of the spammers AUP matched their AUP quite closely. In fact, if you plug the AUP into Google, Campaign Monitor comes up as one of the first hits.
It was not Campaign Monitor I was talking about. In fact, the ESP I received the mail from is not on the first 8 pages of Google hits for the phrases I posted.
A similar thing happened when I posted about Dell spamming me. Dell has multiple ESPs, and one of their ESPs contacted me directly in case they were the ones Dell was spamming through. It was no surprise to me that they weren’t the ESP involved.
This is what good ESPs do. Good ESPs monitor their reputation and monitor what people are saying about them. Good ESPs notice when people claim they’re being spammed and effectively reach out to the complainers so they can investigate the claim.
Good ESPs don’t just rely on the complaint numbers to take action. They keep an eye out on social networks to see who might be receiving mail they never asked for.

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Spamming ESPs

In my mailbox there is a definite uptick in spam from ESPs advertising their services.
Today’s email was from a company that has the following in their anti-spam policy:

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