List Building


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List Building

  1. 1. List Building: When to Rent, Buy and/or Profile
  2. 2. How to get started <ul><li>Before you decide if renting, purchasing or prospect sourcing contacts to supplement your house list is prudent you need to know some key data points: </li></ul><ul><ul><li>Establish your revenue goal </li></ul></ul><ul><ul><li>Establish you average deal size </li></ul></ul><ul><ul><li>Establish the average percent of inbound leads that become clients </li></ul></ul>
  3. 3. What d o es all this t ell y ou? <ul><li>Revenue Goal ÷ Avg. Deal Size = Total # of deals needed to reach revenue goal </li></ul><ul><li>Required # of Deals ÷ % of Leads Closed = # of leads needed to meet revenue goal </li></ul><ul><li>Now find the average response rate for house list </li></ul><ul><ul><li>How many leads are generated, on average, when sending to the house list at any given time? </li></ul></ul>
  4. 4. <ul><li>If you found that your house list is indeed sufficient then there is no need to continue through this presentation </li></ul><ul><ul><li>You’re house list is the most effective way to generate leads </li></ul></ul><ul><ul><li>Remember that generating an excess in leads that your sales team is unable to follow up with in a timely manner actually creates more harm then good </li></ul></ul>Is your house list sufficient?
  5. 5. Options for building lists <ul><li>Budget is an important variable, if it’s limited some options may not be viable </li></ul><ul><li>Based on average response rate (from most expensive to least) the best options are: </li></ul><ul><ul><ul><li>Renting </li></ul></ul></ul><ul><ul><ul><li>Prospect Sourcing </li></ul></ul></ul><ul><ul><ul><li>Purchasing </li></ul></ul></ul>
  6. 6. Universe study <ul><li>A universe study should be done before renting or purchased list </li></ul><ul><li>A universe study is an ideal way to research the big picture: </li></ul><ul><ul><li>Find out what niche your target buyer is most likely to exist in </li></ul></ul><ul><ul><li>What are the costs associated for various lists </li></ul></ul><ul><ul><li>What industry publications prospects read </li></ul></ul><ul><ul><li>What is the cost for a minimum order </li></ul></ul><ul><ul><li>What selects are available to you </li></ul></ul>
  7. 7. Selects <ul><li>Specifications for the people you want to reach: i.e. geography, department, and position title </li></ul><ul><li>Need to take advantage of as many of these selects as possible </li></ul><ul><ul><li>Helps create the most targeted and therefore smallest list possible </li></ul></ul><ul><li>While most vendors charge for each select, you often recoup these charges as they weed out those unqualified, thereby producing smaller, less expensive lists </li></ul>
  8. 8. Readership communities <ul><li>Research Communities: good idea to explore and find out where your prospects get their information </li></ul><ul><ul><li>Research publications (print & online) to see if they rent their lists </li></ul></ul><ul><ul><ul><li>If they do rent lists this is a good thing (counter to conventional wisdom), as opposed to selling their lists. </li></ul></ul></ul>
  9. 9. Media purchases <ul><li>No Deals to be found </li></ul><ul><li>Get what you pay for: </li></ul><ul><ul><li>The more expensive the list, the higher quality it is and the less it’s been sent out. </li></ul></ul>
  10. 10. List renting <ul><li>If best option contact list broker and list specifics (opt-in, double opt-in, how often its sent) </li></ul><ul><li>What costs are associated </li></ul><ul><ul><li>Typically average list is $.25-.50/name with 5,000 contact minimum order </li></ul></ul>
  11. 11. Pros of list renting <ul><li>The list owner allows you to see the list’s statistics (average response rates, average amount of leads generated, etc.) before you rent </li></ul><ul><li>Rented lists usually generate .5%-2% response rate </li></ul><ul><li>The list owner manages the number of times the list is sent out, which prevents overuse </li></ul><ul><li>Once the email is created, the owner will send it for you </li></ul>
  12. 12. Cons of list renting <ul><li>You do not own the addresses on the list – you only get the contact information of individuals that take part in your offer and fill out one of your forms </li></ul><ul><li>A fee is charged each time an email is sent </li></ul>
  13. 13. List purchasing <ul><li>Purchasing a list is the same process as renting except you pay a one time fee, </li></ul><ul><ul><li>Usually less than a rental fee ($.10-2/name), to keep a physical copy of the list </li></ul></ul>
  14. 14. Pros of list purchasing <ul><li>You own the addresses on the list immediately </li></ul><ul><li>This is a shortcut to instantly boosting the size of your house list </li></ul><ul><li>You can use it as many times as you want </li></ul><ul><li>Once purchased, sending to it again is free </li></ul>
  15. 15. Cons of list purchasing <ul><li>Rarely are purchased lists opt-in </li></ul><ul><li>Rarely are purchased lists targeted – think shotgun versus rifle </li></ul><ul><li>The chances of your communication being marked as spam are higher because it is unsolicited </li></ul><ul><li>If there are too many spam complaints, your risk of being blacklisted is higher </li></ul><ul><li>The list can be sold to many people, which puts it at risk for overuse </li></ul><ul><li>Purchased lists have a much lower average response rate, around .5% </li></ul>
  16. 16. Prospect sourcing <ul><li>This includes searching for new clients, collecting contact information and adding it to the house list via several online data collection methods. </li></ul><ul><li>The process of collecting this information is difficult and most good prospect sourcers have over 10 years experience </li></ul><ul><li>If you don’t have access to someone with that knowledge, ramping up can be an insurmountable obstacle </li></ul><ul><li>Need the proper technology to be effective </li></ul>
  17. 17. Pros of prospect sourcing <ul><li>Once technology and ability are acquired there are no additional costs </li></ul><ul><li>It helps expand your house list – you own the data you collect </li></ul><ul><li>You gain contact data for specific companies you are interested in </li></ul><ul><li>It can augment your house list at any time with new data </li></ul>
  18. 18. Cons of prospect sourcing <ul><li>Addresses are not opt-in </li></ul><ul><li>You can gather outdated email addresses </li></ul><ul><li>The process is time consuming if done internally </li></ul><ul><li>The skills needed require considerable time to acquire </li></ul><ul><li>The technology needed is expensive </li></ul>
  19. 19. Before picking an option… <ul><li>Test them out! </li></ul><ul><ul><li>Make sure the list you’re planning to use is legitimate before sending out the actual marketing campaign </li></ul></ul>
  20. 20. Call to action <ul><li>Full Report – </li></ul><ul><li>Contact: William Tincup </li></ul><ul><li>W: </li></ul><ul><li>E: [email_address] </li></ul><ul><li>P: 817-204-0400 </li></ul>