What Are Third Party Lists?
In the context of email marketing, third party lists refer to email lists that are purchased or rented from an external provider. These lists typically contain email addresses of individuals who have not directly opted in to receive communications from your business. Instead, they have signed up for mailing lists from other companies or platforms, and their information is then sold to marketers. Why Do Marketers Use Third Party Lists?
Marketers use third party lists to quickly and significantly expand their reach. Building a
subscriber list organically can be a time-consuming process, so purchasing a third party list can seem like a fast way to gain access to a large number of potential customers. This approach is often used in
lead generation campaigns or when launching a new product or service.
The Risks and Downsides
While third party lists can offer quick access to a broad audience, they come with several significant risks and downsides: Low Quality Leads: The recipients on these lists have not explicitly opted in to receive your emails, which often results in low engagement and high
bounce rates.
Legal Issues: Using third party lists can put you at risk of violating
data protection laws such as the GDPR and CAN-SPAM Act. These laws require explicit consent from individuals to receive marketing emails.
Damage to Brand Reputation: Sending unsolicited emails can tarnish your brand’s reputation and lead to your emails being marked as
spam.
Deliverability Issues: High bounce rates and spam complaints can damage your sender reputation, making it harder for your emails to reach inboxes in the future.
Alternatives to Third Party Lists
Instead of relying on third party lists, there are several ethical and effective strategies for building your own
email list:
Content Marketing: Create valuable content such as blog posts, eBooks, and webinars that encourage visitors to subscribe to your newsletter.
Social Media: Use social media platforms to promote your email sign-up forms and offer incentives for joining your list.
Website Pop-ups: Implement pop-ups on your website to capture visitors’ email addresses.
Lead Magnets: Offer free resources or discounts in exchange for email addresses.
Best Practices for Using Third Party Lists
If you decide to use third party lists despite the risks, here are some best practices to follow: Verify the Source: Ensure that the list provider complies with all relevant
regulations and follows ethical data collection practices.
Segmentation: Segment the list based on relevant criteria to increase the chances of engagement.
Personalization: Personalize your emails to make them more relevant and engaging for the recipients.
Clear Opt-Out Options: Always include an easy way for recipients to unsubscribe from your emails to stay compliant with regulations.
Conclusion
While third party lists can offer a shortcut to a larger audience, the potential risks often outweigh the benefits. Focusing on building an organic, opt-in email list will yield better long-term results and help you maintain compliance with data protection laws. By investing in ethical and effective list-building strategies, you can ensure higher engagement, better deliverability, and a positive brand reputation.