| Watch out for these common | | | | this email marketing game is starting to |
| misconceptions that can torpedo your | | | | sound more expensive than I thought.' |
| email effort. | | | | And you're right. But marketing expenses |
| As primary contact person for the | | | | are part of the cost of doing business. |
| EmailResults.com Marketers' Market | | | | If you don't have the financial |
| (http://emailresults.com), I come in | | | | resources (as well as the time and |
| contact with dozens of business people | | | | patience) to promote your product, don't |
| every month who are trying to use email | | | | quit your day job just yet. It's |
| as a marketing tool. In many cases, | | | | possible to build up a business on a |
| these marketers are preventing | | | | shoestring through grit, wile, and toil, |
| themselves from being successful by | | | | but it takes time. |
| harboring unrealistic expectations. | | | | 3. Buying or Renting the List |
| Granted this is not necessarily their | | | | Here's a common misconception that |
| fault. For one thing, suppliers within | | | | doesn't do much harm but comes up |
| the email marketing industry are | | | | frequently. In the email marketing |
| sometimes guilty of hyperbole creating | | | | business, we talk about "renting" lists |
| the impression that this marketing | | | | and "buying" media. Many newcomers |
| medium is magic. Here are some common | | | | assume that when they rent an email list |
| misconceptions and some ways people set | | | | they will receive the addresses and send |
| themselves up for disappointment in the | | | | out the promotion themselves. This isn't |
| realm of email: | | | | the way it works. |
| 1. Lowball Budget | | | | In the email list rental business, you |
| It's true that email can be an | | | | pay someone else to send out your email |
| inexpensive alternative compared to | | | | ad for you. You'll be able to see a |
| postal direct mail marketing and other | | | | sample of what your ad looks like, but |
| methods. However, many small business | | | | you will not handle the email addresses |
| people have the idea that they're going | | | | yourself. Opt-in email and subscriber |
| to be able to run an email campaign on a | | | | lists are jealously guarded, and I have |
| budget of $200 or $100 or even $50. | | | | hardly ever heard of a list owner who |
| By and large, the only possibilities on | | | | will let that list get into anyone |
| budgets of that size are spam lists | | | | else's hands. The exception is the |
| ('We'll email your ad to a million | | | | provider of a spam list, who might sell |
| people for $79!') and small-circulation | | | | you an email database on CD, but I |
| newsletter advertising. If you've read | | | | strongly discourage you from going that |
| my other articles on the subject (http:/ | | | | route. |
| www.emailresults.com/articles.html), you | | | | If you're in the email marketing |
| know that I don't recommend spam lists. | | | | business, this might sound so elementary |
| It is possible to find email newsletters | | | | that you're surprised I'm even bringing |
| that will accept ads for under $500. | | | | it up. But the fact is that every day |
| This can be a good alternative for a | | | | there are hundreds if not thousands of |
| business on a limited budget. You can | | | | business people who decide they want to |
| search for email newsletter publishers | | | | find out what 'this email thing' is all |
| at EmailResults.com (http:/ | | | | about, and they are out there shopping |
| market.emailresults.com). Although you | | | | for email lists. So I see a big need for |
| might be able to find a newsletter you | | | | basic education in how this business |
| can get into for $100 or $200, one | | | | works. |
| newsletter placement is probably not | | | | That said, there is one email list that |
| enough to get an idea whether your ad | | | | you will get to handle yourself: the |
| really works. I recommend testing your | | | | in-house email list that you build up |
| ad in at least three or four | | | | yourself over time, through signup forms |
| newsletters. This will increase your | | | | on your Web site, warranty and |
| costs but will give you a chance to find | | | | registration forms, contacts collected |
| out what really works. | | | | at your trade show booth, or whatever |
| A newsletter ad can help you reach a | | | | other source you can mine. You might use |
| targeted audience, but your ad will only | | | | this list to send out a newsletter, |
| be a small part of the newsletter's | | | | company announcements, weekly specials, |
| content, so response might not be huge. | | | | or some other content. You can certainly |
| You're more likely to get a decent | | | | benefit from renting others' lists and |
| response with a solo ad sent to a good | | | | advertising in others' newsletters, but |
| opt-in list. However, this is where a | | | | your own list is a unique and valuable |
| lowball budget becomes an insurmountable | | | | asset that allows you to get in front of |
| obstacle. Most list owners have a | | | | your target audience regularly. |
| minimum order of $1,000 or even $5,000. | | | | 4. Pay for Performance |
| You might be able to cajole a sales rep | | | | I hear from many, many business people |
| into letting you test a list for $300 or | | | | who say they will only use email media |
| $500, but it's not easy. And then you | | | | on a pay-for-performance (PFP) basis, |
| have the risk of hitting the wrong list | | | | such as CPC (cost per click) or CPA |
| and getting skewed results. Again, I | | | | (cost per acquisition). As an advertiser |
| recommend testing three or four lists to | | | | myself, I can understand this point of |
| get a realistic idea of response rates | | | | view, and I've had good results with PFP |
| for your offer. | | | | media for certain campaigns. |
| 2. Phenomenal Results | | | | It's certainly possible that you could |
| Unrealistic expectations about response | | | | run successful campaigns on this basis, |
| and conversion rates are not limited to | | | | given the right product and target |
| email marketing, but they are common in | | | | market. But for most advertisers, |
| this field. An email promotion that | | | | insisting on CPA won't work and will be |
| offers high value to a well-targeted | | | | self-defeating. The fact is that the |
| audience can pull well. I've seen | | | | vast majority of email list owners |
| response rates as high as 30%, but I've | | | | simply won't work on a PFP basis. |
| also seen response rates that were | | | | Whether you like it or not, they insist |
| effectively zero. | | | | on getting paid up front. If you insist |
| There's no such thing as a "standard" | | | | only on using CPA media, you might be |
| response or conversion rate. Your | | | | missing out on just the email list that |
| response will depend on the quality of | | | | could make your business. I've seen very |
| your list, offer, and creative. The only | | | | promising products that never made it to |
| way to find out what kind of response to | | | | market because the marketer wasn't |
| expect for a particular campaign is to | | | | willing to bear the cost of buying and |
| run tests. In fact, you should always be | | | | testing media to figure out what works. |
| running tests to increase your | | | | Unrealistic expectations often result in |
| return-on-investment. Work hard to find | | | | disappointment. Understanding the |
| the most responsive lists, the best | | | | realities of email marketing can help |
| email and Web copy, the most compelling | | | | even the beginner to plan a marketing |
| offer. | | | | effort with more likelihood of success. |
| By now, you might be thinking, 'Wow, | | | | |