What to expect from e-mail marketing

Watch out for these common misconceptions that canmarketing game is starting to sound more expensive
torpedo your email effort.than I thought.' And you're right. But marketing
As primary contact person for the EmailResults.comexpenses are part of the cost of doing business. If you
Marketers' Market (http://emailresults.com), I come indon't have the financial resources (as well as the time
contact with dozens of business people every monthand patience) to promote your product, don't quit your
who are trying to use email as a marketing tool. Inday job just yet. It's possible to build up a business on a
many cases, these marketers are preventingshoestring through grit, wile, and toil, but it takes time.
themselves from being successful by harboring3. Buying or Renting the List
unrealistic expectations.Here's a common misconception that doesn't do much
Granted this is not necessarily their fault. For one thing,harm but comes up frequently. In the email marketing
suppliers within the email marketing industry arebusiness, we talk about "renting" lists and "buying"
sometimes guilty of hyperbole creating the impressionmedia. Many newcomers assume that when they rent
that this marketing medium is magic. Here are somean email list they will receive the addresses and send
common misconceptions and some ways people setout the promotion themselves. This isn't the way it
themselves up for disappointment in the realm of email:works.
1. Lowball BudgetIn the email list rental business, you pay someone else
It's true that email can be an inexpensive alternativeto send out your email ad for you. You'll be able to see
compared to postal direct mail marketing and othera sample of what your ad looks like, but you will not
methods. However, many small business people havehandle the email addresses yourself. Opt-in email and
the idea that they're going to be able to run an emailsubscriber lists are jealously guarded, and I have hardly
campaign on a budget of $200 or $100 or even $50.ever heard of a list owner who will let that list get into
By and large, the only possibilities on budgets of thatanyone else's hands. The exception is the provider of
size are spam lists ('We'll email your ad to a milliona spam list, who might sell you an email database on
people for $79!') and small-circulation newsletterCD, but I strongly discourage you from going that route.
advertising. If you've read my other articles on theIf you're in the email marketing business, this might
subject (http://www.emailresults.com/articles.html), yousound so elementary that you're surprised I'm even
know that I don't recommend spam lists.bringing it up. But the fact is that every day there are
It is possible to find email newsletters that will accepthundreds if not thousands of business people who
ads for under $500. This can be a good alternative fordecide they want to find out what 'this email thing' is all
a business on a limited budget. You can search forabout, and they are out there shopping for email lists.
email newsletter publishers at EmailResults.com (http:/So I see a big need for basic education in how this
market.emailresults.com). Although you might be able tobusiness works.
find a newsletter you can get into for $100 or $200,That said, there is one email list that you will get to
one newsletter placement is probably not enough tohandle yourself: the in-house email list that you build up
get an idea whether your ad really works. Iyourself over time, through signup forms on your Web
recommend testing your ad in at least three or foursite, warranty and registration forms, contacts
newsletters. This will increase your costs but will givecollected at your trade show booth, or whatever other
you a chance to find out what really works.source you can mine. You might use this list to send
A newsletter ad can help you reach a targetedout a newsletter, company announcements, weekly
audience, but your ad will only be a small part of thespecials, or some other content. You can certainly
newsletter's content, so response might not be huge.benefit from renting others' lists and advertising in
You're more likely to get a decent response with aothers' newsletters, but your own list is a unique and
solo ad sent to a good opt-in list. However, this isvaluable asset that allows you to get in front of your
where a lowball budget becomes an insurmountabletarget audience regularly.
obstacle. Most list owners have a minimum order of4. Pay for Performance
$1,000 or even $5,000. You might be able to cajole aI hear from many, many business people who say
sales rep into letting you test a list for $300 or $500,they will only use email media on a
but it's not easy. And then you have the risk of hittingpay-for-performance (PFP) basis, such as CPC (cost
the wrong list and getting skewed results. Again, Iper click) or CPA (cost per acquisition). As an
recommend testing three or four lists to get a realisticadvertiser myself, I can understand this point of view,
idea of response rates for your offer.and I've had good results with PFP media for certain
2. Phenomenal Resultscampaigns.
Unrealistic expectations about response andIt's certainly possible that you could run successful
conversion rates are not limited to email marketing, butcampaigns on this basis, given the right product and
they are common in this field. An email promotion thattarget market. But for most advertisers, insisting on
offers high value to a well-targeted audience can pullCPA won't work and will be self-defeating. The fact is
well. I've seen response rates as high as 30%, but I'vethat the vast majority of email list owners simply won't
also seen response rates that were effectively zero.work on a PFP basis. Whether you like it or not, they
There's no such thing as a "standard" response orinsist on getting paid up front. If you insist only on using
conversion rate. Your response will depend on theCPA media, you might be missing out on just the email
quality of your list, offer, and creative. The only way tolist that could make your business. I've seen very
find out what kind of response to expect for apromising products that never made it to market
particular campaign is to run tests. In fact, you shouldbecause the marketer wasn't willing to bear the cost
always be running tests to increase yourof buying and testing media to figure out what works.
return-on-investment. Work hard to find the mostUnrealistic expectations often result in disappointment.
responsive lists, the best email and Web copy, theUnderstanding the realities of email marketing can help
most compelling offer.even the beginner to plan a marketing effort with more
By now, you might be thinking, 'Wow, this emaillikelihood of success.