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How much do list owners make
from renting their list?
Have you ever wondered
how much a list owner makes when you rent their list for one of your mailings?
The average is about 65% of the base price. Example: You rent 5,000 names from
ABC Association through us or another list broker. If the base price per
thousand names is $125, the list owner will make about 5 x $125 x .65. About
$406. Of course, when you rent a list, you also may pay for selection charges, a
disk, and shipping, but those fees typically go to the service bureau that
fulfills the order.
Is it worth it to rent your
in-house list?
Now, let's say 20 other clients
around the USA rent the same ABC Association list you did in a given month.
That's 20 x $406. About $8,120. Do that each month for one year and the list
owner makes $97,440. Not bad for no work, no overhead, and no investment. But is
this realistic? Yes. I know of one professional association that generates over
$1,000,000 per year from a list of no more than 140,000 names! Sure, that may be
an exception, but think about it.
Factors that influence rental
income
The amount of revenue that your list can
generate is based on numerous factors: quality and cleanliness of your list,
number of names, base price you charge, effective marketing of your list,
participation in databases, number of offers you approve or deny, use of an
alias list name, and other factors.
If you don't win, no one
wins.
It certainly has occurred to you to ask
what happens to the other 35% of revenue you don't receive. Roughly 5% goes to
what are called running charges, the actual cost to create the list according to
the specifications of the client who is renting it. The balance goes to the list
manager who markets your list and to the list brokers who actually place the
orders. (For more on this, see our Insider Report on Anatomy of a Mailing List
Order.)
Answers to some Frequently
Asked Questions
If you want to explore renting
your list, you might want to know the following:
- You do not need to sign any long
term, binding agreements.
- You can rent your list under an
alias name.
- You can have the right to approve
every offer of everyone who would like to rent your list, or you can simplify
this by giving your list manager guidelines to follow.
- If you put your list into one of the
databases, your list will be enhanced with demographic data you can use for
your own marketing purposes, like company size and industry, level of
management, and much more.
- Should you ever want to order other
lists within a database, your list can be automatically deduplicated so that
you don't pay for names you already own. (And you can do this in our database,
even if you don't rent your list.)
- The names you have on your internal
list of participants and students are not a secret. Almost 100% of them are
already on one, or many more, mailing lists.
- Renting your list gives you access
to many good lists that are only available with reciprocity -- they will rent
5,000 names to you IF you will give them the right to rent 5,000 names from
you at some future point.
You already know that some of the
finest, credible organizations and companies in the country rent their list of
decision makers, customers and clients, and prospects. They have verified that
the response of their own internal list to their own offers does NOT decrease as
a result of renting it to others. They know they have a valuable commodity in
their own internal list and have made a prudent business decision to leverage it
into a very profitable income stream.
Explore how you can leverage
your internal list into a profitable income stream - at little or no
cost.
Please call and ask for Phil Graf,
President, at 941-921-5455.
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