RENT MAILING LISTS TO OTHER DEALERS
Mail order dealers are always
looking for more people to send their offers to. You'll find this out in your
own business. Besides sending your offers out to people who answer your ad,
you can expand your business by doing mass mailings to lists of people who
have responded to offers similar to yours. You can make extra profits by
renting your customer list to other dealers.
Notice I said "renting." Too many people use the terms "buy" and "sell" when
talking about mailing lists. Mailing lists are rented, not bought and sold.
When you rent a mailing list, it is for one-time use. Any customers who order
from you can, of course, be added to your permanent customer list. But you
shouldn't send out more than once to a rented list. This is unethical, as it
robs the owner of the mailing list of revenues. How would you like it if
someone paid you once for the mailing list YOU were renting out, then used it
three or four times? Each time he used it would be a rental fee you DON'T
get. So, mailing lists are not bought and sold. They are rented.
How should you go about setting up your customer list so you can gain rental
income? If you don't have a computer, the best way to go about it is by
purchasing some photocopier labels. These can be found at any office supply
store. Type your names and addresses once on labels. This is your master
set. Then, when you get an order for your list, photocopy your master list
onto new labels.
If you do have a computer, you should be keeping your customer list in a
database. If you're not, you can learn how to by reading the "Mail-Order
Computer" report, available for $8 postpaid from Pat Flanagan Publishing &
Design, 540 Imus Dr., Mishawaka, IN 46545. You can also find out the BEST
and most ECONOMICAL computer to get, if you don't already have one. Anyway,
by keeping your mailing list on your computer, you can print out labels
whenever necessary. Also, you can keep track of the age of your mailing list.
The best customers to send an offer to are ones who have bought in the past
thirty days. A list of names and addresses that are less than thirty days old
can be rented for a higher rate than older names. I wouldn't bother renting
names that are more than ninety days old, unless you specifically say they are
that old in your ads. Most smart dealers won't rent them, though, so it may
be a waste of your time. Also, a list of people who have just inquired about
offers, but not ordered, will not rent for too much.
A good idea is to have a friend whose name and address you can add to your
list. Then, have your friend pass on to you anything he or she receives from
those who rent your list. That way, you can tell if someone is using your
list more than once without paying. This is called "seeding" the list. Also,
you will get offers you have never seen before, that you may want to respond
to.
How much should you rent your list for? A lot depends upon competition. Read
the ad sheets and tabloids you get in the mail and see what others are
charging. Use this as a guideline. Despite what other writers may say, don't
count on making $100,000 per year renting lists. Some people do, but they are
the ones who do ONLY that, who have large, multiple computer setups, and spend
thousands in advertising. Let THEM do that. While you may make a much
smaller amount renting your list, it's still money you didn't have before.
In your ads, be sure to include how old your list is, how many names, and
where they came from. For example: "125 Fresh, Active Mailorder Buyer's
Names from my Order list, all less than 30 days old. $2.00 plus 2 first class
stamps. Order today! (your name and address)." This ad can be used as a
classified ad or a typeset one-inch ad. Labels usually come 33 to a page (3
columns of 11), so you can fill this order with four sheets. Your cost should
be less than 50 cents, so you make $1.50 per order, plus your postage expense
is nothing. Enclose your best offers with your list, up to the maximum weight
for the amount of postage you requested, and you will make more money with the
orders you receive. You will get a lot of dealers who will pay for your
names, if they are priced right. Like I said, you won't get rich, but it's
more money, and you'll get some orders for your other offers, too. Add the
names of those who rent your list to the list of names you rent. After all,
they did buy from you.
Your mailing list is an important profit-making resource, one which many mail
order dealers don't take advantage of. Do the smart thing and rent it out.
More money plus more orders equals a good idea.
