What Are Purchased Lists?
Purchased lists are collections of email addresses that businesses buy from third-party vendors in an effort to expand their marketing reach. These lists are often marketed as a quick way to gain a large number of contacts.
Are Purchased Lists Legal?
The legality of using purchased lists varies depending on the jurisdiction. In the United States, the CAN-SPAM Act regulates commercial emails, requiring businesses to include opt-out mechanisms and accurate header information. In the European Union, the GDPR imposes stricter rules, emphasizing the need for explicit consent before sending marketing emails.
Why Do Businesses Consider Using Purchased Lists?
Businesses often turn to purchased lists to quickly grow their email subscriber base. This approach can be tempting for new businesses or those looking to boost their reach during a specific campaign.
1. Low Engagement: Recipients on purchased lists are less likely to engage with your emails, resulting in low open and click-through rates.
2. Spam Complaints: Sending unsolicited emails can lead to spam complaints, damaging your sender reputation.
3. Legal Issues: Non-compliance with laws like the GDPR or CAN-SPAM Act can result in hefty fines.
4. Poor List Quality: Purchased lists might include outdated or invalid email addresses, increasing bounce rates and affecting deliverability.
How Do Purchased Lists Impact Deliverability?
Deliverability is a critical aspect of email marketing. High bounce rates and spam complaints associated with purchased lists can negatively impact your sender reputation. Email service providers (ESPs) may flag or even blacklist your domain, making it difficult for your emails to reach the inbox.
1. Organic List Building: Grow your email list organically through signup forms on your website, social media, and at events.
2. Lead Magnets: Offer free resources like eBooks, webinars, or discounts in exchange for email addresses.
3. Referral Programs: Encourage existing subscribers to refer friends and family by offering incentives.
4. Content Marketing: Create valuable content that attracts and retains visitors, converting them into subscribers over time.
1. Ask for Transparency: Request information about how the list was compiled and how often it is updated.
2. Segment the List: Use segmentation to target specific groups within the list, improving relevance and engagement.
3. Use Email Verification Tools: Verify the email addresses using tools like ZeroBounce or NeverBounce to reduce bounce rates.
Key Takeaways
Using purchased lists in email marketing is fraught with risks and challenges, from legal issues to poor deliverability and low engagement. While it may offer a quick fix, the long-term consequences often outweigh the short-term benefits. Focus on organic list-building strategies to create a more engaged and compliant subscriber base.