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View Full Version : Purchasing addresses for direct mail?



df6548
01-24-2012, 12:11 PM
Hello,
I would like to try a small direct mail campaign for my new business, and am thinking about purchasing a mailing list from one of the companies who specialize in this, but could use some advice from someone who has some experience with direct mail.

My questions:
1) After doing some research, I am unclear as to roughly how much these lists should cost. I tried an online estimator on one site, and the "quote" they gave me for purchasing a list of addresses was several thousand dollars!! (That wasn't for sending out the postcards, JUST a list download.) That seemed really high to me, but then again, I've never done anything like this before.

2) Are there companies that specialize in niche business address lists? As an example, say I have a company that specializes in physical therapy for recreational athletes (which is not what I do, by the way!) Instead of doing a mass mailing to the general public and hoping to hit a few of these people, I want to send postcards/flyers to the places they frequent--sporting goods stores, gyms, etc. Is there a company who could sell me a list of sporting goods stores within, say, 60 miles of my zip code? So far all I've found are services that specialize in niches like senior citizens, etc., and not in specific types of businesses.

3) Is paying for these lists even worth it, or am I better off just using Google and compiling lists myself? This will be a smallish campaign (probably under 1000 pieces total) just to test the waters, but finding information for all of those businesses would still be time-consuming.

Any advice?

KristineS
01-24-2012, 12:23 PM
We've dealt with Info USA in the past. The advantage of buying from a company like that is that they've checked their addresses and the information is reasonably current. You can also drill down into a specific population segment. If you compile your own list through Google, you could end up with addresses that are inaccurate or incorrect. You also may well end up with people on your list who are not in your target demographic.

You might also check out Infofree.com. They offer lists for free. The catch is that you can only search by zip code or county, so compiling a list can take quite a bit of time. Still, it might be worth a look.

vangogh
01-24-2012, 02:30 PM
What kind of business is this for?

I'm not a fan of a general mailing list. Unless this list is highly targeted to your business you're only sending mail to random people who have no idea who you are. Odds are much of it gets tossed unopened. If this is a list of people who have shown prior interest in your product/service you likely get more to open the mail. Keep in mind that with sending out a mailing like this, success usually comes after months of sending mail. Sending out something one time to a small group of people probably isn't going to result in a lot of business.

Sending out postcards to businesses that would serve your customer is likely similar. Most of the places I've worked out no one ever looked at mail like this. It was even less frequently opened than mail to the home. Of course, that's just one person's observation. Perhaps other businesses did open more. Assuming you can collect the list I might go into the businesses and talk to the owners directly. My guess is it'll result in a higher return visiting in person. 60 miles might be difficult, but 20 might be realistic.

I wouldn't go the Google route if you're building a list of consumers. That would be even more random. Best is to get a list of a specific demographic or better a list of people who've shown an interest in what you offer. The ideal is a list of people who have shown interest in your company specifically, but that's one you'll have to build on your own. If you're looking for businesses you can probably build a list of places to visit.

df6548
01-24-2012, 03:05 PM
All valid points. In your opinion, if I don't go the direct mail route, what is the best use of my marketing budget? I am a brand-new business and I currently have $1500 to spend on marketing and advertising, so I want to do something that will give me as much bang for my buck as possible on such a small budget. Any suggestions?

It looks as though purchasing address lists might be out of my reach at the moment, anyway. I tried the site suggested above, and the lists alone would quickly eat up most of my $1500.

vangogh
01-24-2012, 04:16 PM
It really depends on your business. What kind of business is it? Is it a physical store? Something online? Are you offering products or services? What story is your brand telling? How much profit can you make in a single sale? All these things will help determine the best way to market the business.

I don't want to knock using a mailing list either. Businesses still use them as evidenced by all the junk mail I get. Of course, that I and many people refer to it as junk mail also says something about it. It's a valid way to market your business though and some do have success with it.

The idea you gave with the example above is a good one, in that you were trying to reach your customers in a place where they naturally spend their time and also one related to your business. I think that's the right approach. It's hard for me to be specific though since I don't know what kind of business you're in. If you don't mind sharing please do. If you want feel free to PM me. I won't share, but I will reply with some thoughts.

df6548
01-24-2012, 04:32 PM
I will send you a PM. We won't be up and running for another few weeks, so I just feel a bit uncomfortable about giving out specific information on a public forum where anyone (including my competitors or potential competitors) can find it...

lucas.bowser
01-24-2012, 04:53 PM
Depending on where you are, another possibility for a mailing list is your local chamber of commerce. I used mine once to get a list of all IT Service companies within 50 miles that had revenues > X. It's been 10 years, but I think it cost me $500, which was basically a gold membership to the local chamber of commerce which at that time allowed me full access to their contact database. I don't know if other chambers do this or not.

As far as best use of your budget, that's hard to say without knowing what you're actually selling and what the consumer buying process is for that particular product or service? The questions I think you need to ask yourself are:

1. How does my consumer become aware of their problem / need for my type of product/service?
2. How are they going to research/find their options?
3. What is their decision process when choosing an option?

Without that information, you're kind of guessing what the best way to spend your money is.

df6548
01-24-2012, 05:19 PM
That's a good thought. I'll have to see what my Chamber of Commerce offers in terms of a mailing list or other marketing options. I live in New York City, and the Manhattan Chamber of Commerce has a "young professionals" membership for just $75, so joining is something I'd definitely planned on doing anyway. Thanks for the tip!

vangogh
01-24-2012, 05:27 PM
PM received. As soon as I get a chance I'll look through everything and send you some thoughts. I understand about not wanting to post the info publicly, but remember that ideas are only worth so much. It's their execution that's valuable.

HoodLaw
01-24-2012, 06:51 PM
With your budget, you couldn't afford to purchase a decent list. Use Google to make your list. Target several names at the same company. Make your list as large as possible and email them.

Follow up with a phone call. I know that means getting hung up on and a long day on the phone, but...You can't just rely on impersonal marketing to sell yourself. Make contact, work, and build your business.

Just as an aside, it is not technically legal in some states to just make a list and spam companies. Of course anything goes with the mail.

Steve B
01-25-2012, 08:01 AM
I just purchased a list the other day for about $100 - it included about 1,500 names of new homeowners in specific zip codes (about 6 cents each). The more specific you want the list to be - the more it costs per name, but the numbers you are getting sound way too high. I bet you're doing something wrong. I think if I want addresses of just dog owners that live in houses valued over 300k in specific zip codes I end up paying about 17 cents per address. I use either info USA or melissadata.

The response rate will be very low - so you have to calculate your expected return and see if it's even worth it at all. Of course, your first several attempts will be based on guesses until you figure out what works. It's all a gamble. As you do more and more advertising you will gain insight as to what might work for you or not. You are guaranteed to spend a lot of money on failed attempts until you figure it all out. Until we know what your business is - it will be hard to give much insight.

Steve B
01-25-2012, 08:24 AM
Also - I just did some pricing for a direct mail campaign I'm considering and I calculate that it will cost me between 82 cents and $1.20 each depending on which options that I choose (jumbo postcard versus #10 envelope, hand addressed versus computer printed etc.). This includes postage, cost of list, printing, and labor. So, you have to decide if hitting approx. 1,500 people with your campaign is going to have a positive return. Depending on what you're selling - the response could be far less than 1%.

vangogh
01-25-2012, 11:08 AM
Of course, your first several attempts will be based on guesses until you figure out what works. It's all a gamble. As you do more and more advertising you will gain insight as to what might work for you or not.

Great point that applies way beyond sending out postcards to a mailing list. With many things marketing and business the only way to get the information you need to make a good decision is to first do your best without that information. Sure, you'll probably fail a time or two if you only looking at your first efforts in terms of the bottom line, but you'll gain the experience you need to succeed in future attempts.

greenoak
01-26-2012, 11:02 PM
we have used google...for us it was to reach garden businesses in area cities and towns.... we got a great list...and it was easy...

Startup Survivor
03-01-2012, 12:10 AM
As a direct mail marketer and lettershop owner I can tell you it's certainly possible to begin a campaign within your budget. Some thoughts on selecting a mailing list:

1. What geography do you want to cover? You can pin it down to a carrier route within a zip code or spread out by zip code, city, county, state, nationally or even a radius around your location.

2. Who are your best prospects? Businesses can be selected by SIC code, number of employees, reported sales, franchise (or not), home businesses and many other criteria.

3. Contact names and telephone numbers, if available, can be included (ditto email addresses) although they may not be the person you ultimately want to reach.

4. We, along with any other reputable company will charge about 5-6 cents per record usually subject to a minimum charge of $250.00 (this for a Dun & Bradstreet list), although very specific lists, subscribers to trade magazines for example, could cost substantially more.

5. Lists are not sold they are rented. The cost quoted above is for a one-time use. Two-time usage costs 150% of the one-time base, unlimited 12 month use will typically be double the one-time base.

6. What and how you mail will affect your cost. Post cards are probably the least expensive way to go. For your budget you could mail 3,000 - 4,000 cards. This includes; a.Printing (but not design), b. Mail list (as described above), c. Addressing services and, d. Postage

Good Luck in your venture.

PHCProducts
11-17-2015, 09:57 PM
Have you considered doing it on your own? There is a lot of great info out there for creating basic websites and buying traffic. You'd be able to target a very specific user on both google and facebook and make sure your money is stretched as far as it can be.