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How to Generate Want to broaden your income possibilities? Then consider list rental income as a new source of untapped revenue readily available to you. More than 40,000 different lists are being rented out currently in the United States alone, generating income for such companies as American Express, Business Week, Doubleday & Co., Fortune, Kiplinger, Lillian Vernon Mail Order Catalog, Horchow Collection, etc. How valuable are your names? Are your names direct-response generated or compiled? Direct-response names are names of people who have responded to an offer in the mail or an ad in a publication. A compiled list is made up of names taken from a source such as a directory or a telephone book. Mailing lists of buyers are much more valuable than lists of inquirers. Both are more valuable than compiled lists. How should you begin? List owners who opt for self-management often find their lists go without proper promotion…they don’t have the contacts, the reputation or the facilities. You can most efficiently and easily generate rental income from your list by hiring a company which specializes in list promotion. Their list manager advertises the availability of your list and aggressively promotes rentals (1) in key direct mail trade publications, and (2) among list brokers, advertising agencies, list users and lettershops nationwide. Some list companies also offer specialized promotions. The company receives and handles all rental inquiries, so that you won’t be bothered with unproductive queries. In addition, they handle all follow-up, scheduling and billing. Your list manager will send you a sample mailing piece from the prospective renter for your approval. You may not want to rent to a competitor, or to a company whose product or service you don’t like. That is your option. Find out what lists of a competitive nature are renting for and use that as a basis for your price. Mailing list prices now average between $50 and $100 per thousand names. Lists that are very strong, such as The Ruff Times have been renting for over $120per thousand names. Once the rental is approved, the renter of the list must agree to the price, the assigned mail date and the fact that the list is rented, not purchased (this simply means that all rentals are made on a one-time use basis). You pay out commissions of about 100% to the list manager (20% if the list small) and about 20% to the list broker who generated the sale. Thus, you keep approximately 70%, minus the few dollars per thousand it costs to generate the labels. Choose carefully Make sure your list will be promoted aggressively. Many times, even though there is aggressive promotion to obtain your list management, actual promotion of your list may not be equally aggressive if the following conditions exist:
Reputation is important. If a list management company does not keep accurate information about about their mailing lists (for instance, a subscriber turns out to be an inquirer, or a contributor turns out to be a former contributor), they develop a bad reputation. Avoid them…the list broker will not recommend your list to his clients if your list company has an unfavorable reputation. Other things to watch for when choosing a list management company:
When should you start? If you have several thousand names, start now. Make a decision on a reliable list management company and start generating that hidden source of income. Your names are safe…you have complete control over who uses your list…and the time involved is minimal. Craig Huey is president of InfoMat, Inc., a list management/brokerage and consultation firm located at 21171 S. Western Ave., Suite 206, Torrance, CA 90501. He is publisher of the direct marketing newsletter, Direct Response.
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