What is a
List Broker?
In the marketing list trade, there are a number of middlemen standing between the owner of a list and the marketer who wishes to use it. One of these is called the list broker. The list broker, like a travel agent, has specialized knowledge of lists -- their profiles, quantities, costs, sources, etc. -- and uses it to advise list users.
This knowledge is shared with the list user free of charge with the understanding that the user will order the lists through the broker. The broker earns a commission on this transaction, typically paid by the owner of the list. List users cannot obtain lower prices by ordering directly from list owners.
In some cases, list owners may not rent lists to the public for
fear of list abuse. The only way to obtain use of these lists is
to use a list broker.
How much does a list
cost?
Lists will vary depending on the source, the
contents and the quantity. Most list are rented
(not sold) on a per record basis. You can expect a minimum
purchase amount and to pay extra for selects. Selects are the
additional criteria used to better target a mailing lists. The
prices shown below are accurate as of November 2002:
Business mailing list: multi-use one year
license base price is $104.00 per 1,000 records ($95.00 minimum) *
Business Selects: (these prices are added to
the base after the minimum, more selects are available than
shown)
- Geographic area: free
- Employee size: $15.00 per 1,000
- Sales volume: $15.00 per 1,000
- Contact names: $30.00 per 1,000
Consumer mailing list: multi-use one year
license base price is $80.00 per 1,000 records ($95.00 minimum) *
Consumer Selects: (these prices are added to
the base after the minimum, more selects are available than
shown)
- Geographic area: free
- Income: $5.00 per 1,000
- Marital status: $5.00 per 1,000
- Homeowner/renter: $10.00 per 1,000
Resident/Occupant mailing list: base price is
$15.00 per 1,000 records ($95.00 minimum) *
Resident/Occupant Selects: (these prices are added to
the base after the minimum, more selects are available than
shown)
- Dwelling type: $5.00 per 1,000
- Zip+4 select: $5.00 per 1,000
- Radius select: $25.00 per 1,000
Other vendor sources will have different per
record (and select) prices. Specialized lists (ie: magazine
subscribers, association memberships, etc.) will usually be even
more expensive per record because of their source. For more
information on list pricing, visit our mailing
list information page or contact us directly at (847) 776-9697
or use our contact form.
* Prices are subject to change at any time -
please contact Moonlight before budgeting your next campaign for
an up-to-date cost estimate.
What are the terms and conditions for renting lists?
The vast majority of marketing lists are supplied on a one-time rental basis. This means that the owner agrees to allow the renter to use the list once in return for a
fee. If a rented list is used more than once without prior permission from the owner, he/she may ask for additional payment or may refuse to supply the user with any names in the future.
Owners may impose other restrictions on the use of a list or may even refuse to supply it altogether, such as to competitive marketers.
Some specialized list owners
may require list users to submit a reasonably complete sample of the marketing piece for their review. This enables them to screen out competitive, questionable or otherwise inappropriate offers.
These are very general terms and conditions; all list owners reserve the right to set the price and terms under which they will rent their lists.
How much time should be allowed for list ordering and delivery?
Since list orders are produced according to your detailed specifications, time must be allowed for fulfillment. Most orders for
basic business, consumer or residential lists are shipped within a
few working days of receipt by the list owner or manager.
Specialized lists can take longer, depending on the fulfillment capability of the owner.
What format can I
expect my list to be in?
Rented lists are usually supplied as ASCII Text
Delimited files. This means the fields are separated by either a
comma, tab or other item and the file may be opened or merged into
any word processing, database or spreadsheet software. If
requested, Moonlight will, at no charge, supply your file as an
Excel spreadsheet.
Why are lists so important to the success of my direct marketing campaign?
Experts agree that your choice of lists has more impact on the response produced by your direct marketing effort than any other decision you make.
A poorly conceived marketing message will pull more response from a well-targeted list, than a well-conceived message will from a poorly targeted list.
While changes in the creative elements -- copy, package or offer -- can increase overall response by 25% to 100%; good, new lists can improve response by 200% to more than 1,000%. To make the most of your valuable
time, spend it looking for good lists.
What is a typical response rate for a marketing effort?
Response rates for marketing efforts run from fractions of one percent to as much as 5% or more depending on the nature of the offer. A high-priced offer (e.g. $100+) will normally have a much lower response rate than a low-priced or free offer.
Predicting a response rate for an untested list or new offer is impossible. The question to ask is not, "What response rate will I get?" but rather, "What response rate do I need to get?" For most marketers income from a mailing, relative to its costs, provides the answer.
If the income generated by a list exceeds the costs to use it, plus the cost of fulfillment, then the list is probably worth re-using. If a list produces less income than its total costs, it is probably not worth re-using.
What is undeliverable mail and how should it be interpreted?
Undeliverable mail, also called nixies or gone-aways, is mail which can not be delivered by the postal service due to incorrect, illegible or insufficient address. Such mail may be forwarded (if possible), discarded or returned to the sender.
There is only a tenuous relationship between the amount of undeliverable mail produced by a rented list and its response performance.
For example, while an entirely undeliverable list will produce zero response, a deliverable, but poorly targeted, list may also produce zero (or very little) response. Conversely, a list that returns many nixies (20%+) may also produce acceptable response if it is properly targeted.
The savvy direct marketer will normally measure a list's performance by its response and not by the quantity of nixies. Most mailing lists, even the cleanest, produce undeliverable mail at the rate of 2% to 10%. Any quantity over 10% to 15% may be a cause for concern, but only if the list appears properly targeted and the response rate falls well below expectations.
What is NCOA and do I need
to use it?
NCOA (the National Change of Address) provides mailers with new addresses for people that have moved in the last 48 months. This service is provided by licensees of the United States Postal Service. NCOA provides CASS certified output, Address Standardization, Zip+4, Zip Correction, Carrier Route Coding. NCOA meets Move Update requirements, enabling mailers to qualify for postage discounts.
Currently, most mailing list that continually use ancillary
endorsements (ie: Return Service Requested) do not require NCOA
services. |
