Some research, facts, and opinions
While I don't know the answer, I have done some research. Here are some facts and opinions that will be useful when you decide if opt-in email lists should be part of your sales plan.
Worldata, one of the premier mailing list compilers, had a full-page, four-color ad in the October 6, 2003 issue of DM News Magazine. According to DM News' published advertising and circulation information, Worldata paid $8,305(US) to tell 50,300 DM News subscribers why they should rent Ziff Davis' subscriber mailing lists.
You can rent PC Magazine's 1,891,262 postal addresses for $170/M (per thousand), or their 348,287 email addresses for $200/M for a single use. Ziff Davis' eWeek's 700,353 postal mail subscribers are available for $250/M, and their 260,265 email addresses are yours for a one-use rental of $300/M. You can also rent lists from Interactive Week, CIO Insight, Baseline, Computer Gaming World, Xbox Nation, and seven other Ziff Davis computer publications.
To my surprise, Jay Schwedelson, a vice president of Worldata, is quoted in an article in the same issue of the magazine, saying that the rate-card prices are "extremely negotiable". Business-to-business (BTB) lists that rent for $200/M to $400/M can be had for $100 to $250, and business-to-consumer e-lists are available at even deeper discounts.
The money that you pay for a list rental is split among the list owner, the list manager, and the list broker. Because the list broker makes only a fraction of the rental price, you will have difficulty finding anybody who will rent you fewer than 5,000 names. Many lists have much higher minimum-quantity requirements.
Another piece of advice from Mr. Schwedelson: Nearly a third of consumers change their email addresses each year. When you rent an email list, be sure that you're only paying for the actual names that are delivered.
Before renting an opt-in email list, find out if the people on the list really know that they've opted in. If they have technically and legally opted in, but they don't know this in their heads or in their hearts, some people on the list are going to report your email as spam. You could spend days defending yourself from an accusation of spam, and getting your ISP and web host to restore your accounts.
Many of the computer-related opt-in lists come from magazine subscribers in general, and "controlled circulation" magazine subscribers in particular. Controlled circulation magazines are free publications. To get a free subscription, you have to answer a questionnaire that proves that you're a qualified member of the trade. As part of the qualification for subscriptions to these free trade magazines, subscribers have to give contact information, and permission for the magazines to share their names.
Are opt-in lists really opt-in?
Some of the magazines are very honest about asking for permission to postal-mail and email infomation to their subscribers. Some magazines aren't. Last summer, I studied the sign-up cards from dozens of computer magazines, and I was amazed by the variety. For example:
e-Pro Magazine is perfectly upfront about their sign-ups. In the same size type as the rest of the form, they ask "Are you interested in receiving occasional mailings about key products and services from IT solution providers? We do the mailings; your e-mail address is not shared with the solution provider."
Electronic Publishing Magazine asks for phone, fax, and email. In the smallest print you can imagine, it says "You may receive renewal reminders via email. If you do not wish to receive other business-related, third party email offers from PennWell, please check here." This option is not just for Electronic Publishing Magazine, but for all PennWell publications - more than 40 of them, according to their web site.
Communications Convergence Magazine, in very readable type, asks you to "Please check the boxes below to let us know the types of information that may be of interest to you and that we may send you via e-mail:" The three choices are renewal forms, product and service offerings from other magazines from the same publisher, and product and service offerings from outside, relevant businesses and organizations.
Digital Imaging Magazine says, in the box where you fill in your name, title, postal address, phone, fax, and email address, "By providing your email address, you may receive annual electronic subscription renewals and industry related information from Cygnus Business Media. If you do not want to receive vital career information from our business partners via email please check here". That surely sounds like an opt-out system to me.
Technology & Learning Magazine has an email address box labelled "information required for processing". There's a yes/no checkbox that asks, "Other than subscription notices, would you like to receive special e-mail promotions for other CMP products?" And they ask, "Do you wish to receive Technology & Learning's FREE E-mail newsletter?"
Contingency Planning & Management Magazine, in small but readable type, asks you to opt-in: "Yes, I would like to receive e-mail from companies supplying business continuity products and services." They print this checkbox and sentence twice on the renewal form.
Network World uses an opt-out checkbox: "We would like to send you periodic information via email on 3rd party networking products/services. Check here if you DO NOT wish to receive this information."
I subscribe to more than 150 computer magazines. Some magazines try hard to get you to make an opt-in decision. Some magazines try hard to trick you into opting into their email system. Before renting an opt-in list, find out if the people on the list know that they've solicited emails from software developers like you.
Find out how often the list has been rented. If the list is rented several times each week, then the recipients are possibly already tired of receiving solicitations. Find a list that's fresh.
Should you use opt-in lists to promote your software?
Your success in using opt-in email lists will depend upon how clean the list is, how well-targeted it is, how compelling your offer is, how powerful your email subject line is, and how well you've written your presentation. It depends upon how popular your software category is, how many people's computers can run your program, and how strong your competition is. It depends upon whether your software is in a growing industry segment, or one that is in decline. It depends on whether your brand is the market leader, an also-ran, or a relatively unknown product. It depends if you use the opt-in emailing to generate sales, create downloads, or drive people to your web site.
The bottom line: It costs a bunch. There are risks that you could be accused of spamming. And it's complicated. Marketing usually is complicated. If you get it right, though, the rewards can be outstanding. That's why marketing is so important to your business.
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