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