Buying lists costs more than just money

ShadyGuyWebsiteI’ve been talking to a lot of companies recently who are dealing with some major delivery challenges probably related to their practice of purchasing lists and then sending advertising to every address on the list. They assure me that their businesses would be non-viable if they didn’t purchase lists and it has to be that way.
Maybe that’s true, maybe it is more cost effective to purchase lists and send mail to them. I know, though, that their delivery is pretty bad. And that a lot of the addresses they buy never see their email. And that they risk losing their ESP, or they risk being SBLed, or they risk being blocked at Gmail, or they risk bulk foldering at Hotmail. There are a lot of risks to using purchased lists.
The reality is it’s only getting harder to mail to purchased lists and it’s getting more expensive to mail purchased lists. Paying for the list is a small part of the cost of using them.
Other costs incurred by companies using purchased lists include:
1) Having multiple ESPs. There are certainly legitimate reasons for companies to use different ESPs but there is a cost associated with it. Not only do they have to pay for duplicate services, but they spend a lot of employee time moving lists and recipients around to see who might have the better delivery today.
2) Multiple domains and brand new websites for every send. Landing pages are good marketing and are normal. But some ISPs track the IPs of the landing sites, and those IPs can get their own poor reputation. To get around it, senders using purchased lists often have to create new websites on new IPs for every send.
3) Complicated sending schedules. Sending schedules aren’t dictated by internal needs, they’re dictated by what ISP is blocking their IPs or domains (or even ESP) right now.
All of these costs are hidden, though. The only cost on the actual bottom line is the money they spend for the addresses themselves and that’s peanuts. Because, fundamentally, the folks selling addresses have no incentive to take any care in collecting or verifying the data. In fact, any verification they do only cuts into their profit, as buyers won’t actually pay for the verification and data hygiene and it also reduces the size of the lists they can sell.
And, no, data hygiene companies that look for traps and bounces and “bad addresses” don’t take a bad list and make it good. They just take a bad list and make it a little less bad. If the recipients don’t want the mail, all the hygiene in the world isn’t going to get that message into the inbox.
Outsourcing address collection to list selling companies is more expensive than it looks on paper. That doesn’t stop anyone from building a business around purchased lists, though.

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Blocking of ESPs

There’s been quite a bit of discussion on my post about upcoming changes that ESPs will be facing in the future. One thing some people read into the post is the idea that ISPs will be blocking ESPs wholesale without any regard for the quality of the mail from that company.
The idea that ESPs are at risk for blocking simply because they are ESPs has been floating around the industry based on comments by an employee at a spam filter vendor at a recent industry conference.
I talked to the company to get some clarification on what that spam filtering company is doing and hopefully to calm some of the concerns that people have.
First off, and probably most important, is that the spam filtering company in question primarily targets their service to enterprises. Filtering is an important part of this service, but it also handles email archiving, URL filtering and employee monitoring. The target market for the company is very different than the ISP market.
The ISPs are not talking about blocking indiscriminately, they are talking about blocking based on bad behavior.
Secondly, this option was driven by customer request. The customers of the spam filtering appliance were complaining about “legitimate” mail from various ESPs. Despite being reasonable targeted the mail was unrequested by the recipient. While ESPs use FBLs and other sources of complaints to clean complainers off rented or epended lists at ISPs, the option is not available for mail sent to corporations. Enterprises don’t, nor should they have to, create and support FBLs. Nor should employees be expected to unsubscribe from mail they never requested.
This option is the direct result of ESPs allowing customers to send spam.
Thirdly, this option is offered to those customers who ask for it. It is not done automatically for everyone. The option is also configurable down to the end user.
While I haven’t seen the options, nor which ESPs are affected, I expect that the ones on the list are the ones that the filtering vendor receives complaints about. If you are not allowing your customers to send spam, and are stopping them from buying lists or epending, then you probably have not come to the attention of the filtering company and are not on the list of ESPs to block.

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Resource hogging

Today on SFGate there was an article talking about how some Bay Area coffee houses were struggling to deal with workers who purchase one cup of coffee and then camp out all day using the free wifi. The final paragraph quoted one of the campers.

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May 2015: The Month in Email

Greetings from Dublin, where we’re gearing up for M3AAWG adventures.
In the blog this month, we did a post on purchased lists that got a lot of attention. If you’ve been reading the blog for any length of time, you know how I feel about purchased lists — they perform poorly and cause delivery problems, and we always advise clients to steer clear. With your help, we’ve now compiled a list of the ESPs that have a clearly stated policy that they will not tolerate purchased lists. This should be valuable ammunition both for ESPs and for email program managers when they asked to use purchased lists. Let us know if we’re missing any ESPs by commenting directly on that post. We also shared an example of what we saw when we worked with a client using a list that had been collected by a third party.
In other best practices around addresses, we discussed all the problems that arise when people use what they think are fake addresses to fill out web forms, and gave a nod to a marketer trying an alternate contact method to let customers know their email is bouncing.
We also shared some of the things we advise our clients to do when they are setting up a mailing or optimizing an existing program. You might consider trying them before your own next send. In the “what not to do” category, we highlighted four things that spammers do that set them apart from legitimate senders.
In industry news, we talked about mergers, acquisitions and the resulting business changes: Verizon is buying AOL, Aurea is buying Lyris, Microsoft will converge Office365/EOP and Outlook.com/Hotmail, and Sprint will no longer support clear.net and clearwire.net addresses.
Josh posted about Yahoo’s updated deliverability FAQ, which is interesting reading if you’re keeping up on deliverability and ESP best practices. He also wrote about a new development in the land of DMARC: BestGuessPass. Josh also wrote a really useful post about the differences between the Mail From and the Display From addresses, which is a handy reference if you ever need to explain it to someone.
And finally, I contributed a few “meta” posts this month that you might enjoy:

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