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Investment Numbers that will Add up Well for You

Traditionally, list brokers make about 20% of the base price from one of your business’ mailings. Let us say you rent about 5,000 names through a list broker. Say the base price per thousand names is $125, the list owner will come away with about 5 x $125 x .20 = $125. You also need to consider things such as selection charges, a disk, and shipping. A loss will come in the form of losing the expertise of a list broker, but renting your own list can be profitable.

Renting your list can be quite a lucrative process. Say twenty other clients in the country rent the same list you did in a given month, we are looking at 20 x $125 = $2,500. Considering doing this each month for one year and that culminates to $30,000 for doing no work, no overhead, and no investment.

“I dislike privilege and monopoly. Whatever cannot be shared with the masses is taboo to me.”

Several factors contribute to your potential in-house list income. You have to be concerned of the quality and cleanliness of your list, the number of names, your base price, marketing of your list, partaking in databases, offers you approve or deny, and usage of an ‘alias name list’ are just a few.

You are going to ask about what happens to the other revenue you do not receive. About 5% goes to running charges (the actual cost to create the list according to client specifications). The balance is received by the list manager who markets your list.

The more we share, the more we have.”

Here are some tips to consider in making the decision to rent your list or not:

- You can rent your list anonymously
- No need to sign long-term, binding agreements
- You can give your list manager a list of guidelines to follow in providing others with your lists
- Putting a list into a database will invite demographic data to be later used (company size, industry, level of management, etc.).
- The names on your list most likely are not faithfully yours. Almost all of them will be found on at least one other mailing list.
- One hand washes the other. If you rent out 5,000 names that are useful to another business, the sentiment can later be returned at a time that is advantageous to your business.

“Share and share alike.”

It is not a secret that some of the most profitable and successful businesses make it a business to rent out their lists. Depending on what you rent it out for, your business should not be marred in future transactions by the customers on your own list if they are available to other businesses to contact. These businesses understand that their current customer lists cannot only make them money based on their own products and services, but can doubly serve as a commodity in sharing with other businesses.

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