| Watch out for these common misconceptions that can | | | | marketing 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.com | | | | expenses are part of the cost of doing business. If you |
| Marketers' Market (http://emailresults.com), I come in | | | | don't have the financial resources (as well as the time |
| contact with dozens of business people every month | | | | and patience) to promote your product, don't quit your |
| who are trying to use email as a marketing tool. In | | | | day job just yet. It's possible to build up a business on a |
| many cases, these marketers are preventing | | | | shoestring through grit, wile, and toil, but it takes time. |
| themselves from being successful by harboring | | | | 3. 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 are | | | | business, we talk about "renting" lists and "buying" |
| sometimes guilty of hyperbole creating the impression | | | | media. Many newcomers assume that when they rent |
| that this marketing medium is magic. Here are some | | | | an email list they will receive the addresses and send |
| common misconceptions and some ways people set | | | | out the promotion themselves. This isn't the way it |
| themselves up for disappointment in the realm of email: | | | | works. |
| 1. Lowball Budget | | | | In the email list rental business, you pay someone else |
| It's true that email can be an inexpensive alternative | | | | to send out your email ad for you. You'll be able to see |
| compared to postal direct mail marketing and other | | | | a sample of what your ad looks like, but you will not |
| methods. However, many small business people have | | | | handle the email addresses yourself. Opt-in email and |
| the idea that they're going to be able to run an email | | | | subscriber 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 that | | | | anyone else's hands. The exception is the provider of |
| size are spam lists ('We'll email your ad to a million | | | | a spam list, who might sell you an email database on |
| people for $79!') and small-circulation newsletter | | | | CD, but I strongly discourage you from going that route. |
| advertising. If you've read my other articles on the | | | | If you're in the email marketing business, this might |
| subject (http://www.emailresults.com/articles.html), you | | | | sound 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 accept | | | | hundreds if not thousands of business people who |
| ads for under $500. This can be a good alternative for | | | | decide they want to find out what 'this email thing' is all |
| a business on a limited budget. You can search for | | | | about, 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 to | | | | business 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 to | | | | handle yourself: the in-house email list that you build up |
| get an idea whether your ad really works. I | | | | yourself over time, through signup forms on your Web |
| recommend testing your ad in at least three or four | | | | site, warranty and registration forms, contacts |
| newsletters. This will increase your costs but will give | | | | collected 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 targeted | | | | out a newsletter, company announcements, weekly |
| audience, but your ad will only be a small part of the | | | | specials, 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 a | | | | others' newsletters, but your own list is a unique and |
| solo ad sent to a good opt-in list. However, this is | | | | valuable asset that allows you to get in front of your |
| where a lowball budget becomes an insurmountable | | | | target audience regularly. |
| obstacle. Most list owners have a minimum order of | | | | 4. Pay for Performance |
| $1,000 or even $5,000. You might be able to cajole a | | | | I 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 hitting | | | | pay-for-performance (PFP) basis, such as CPC (cost |
| the wrong list and getting skewed results. Again, I | | | | per click) or CPA (cost per acquisition). As an |
| recommend testing three or four lists to get a realistic | | | | advertiser 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 Results | | | | campaigns. |
| Unrealistic expectations about response and | | | | It's certainly possible that you could run successful |
| conversion rates are not limited to email marketing, but | | | | campaigns on this basis, given the right product and |
| they are common in this field. An email promotion that | | | | target market. But for most advertisers, insisting on |
| offers high value to a well-targeted audience can pull | | | | CPA won't work and will be self-defeating. The fact is |
| well. I've seen response rates as high as 30%, but I've | | | | that 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 or | | | | insist on getting paid up front. If you insist only on using |
| conversion rate. Your response will depend on the | | | | CPA media, you might be missing out on just the email |
| quality of your list, offer, and creative. The only way to | | | | list that could make your business. I've seen very |
| find out what kind of response to expect for a | | | | promising products that never made it to market |
| particular campaign is to run tests. In fact, you should | | | | because the marketer wasn't willing to bear the cost |
| always be running tests to increase your | | | | of buying and testing media to figure out what works. |
| return-on-investment. Work hard to find the most | | | | Unrealistic expectations often result in disappointment. |
| responsive lists, the best email and Web copy, the | | | | Understanding 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 email | | | | likelihood of success. |