Email marketing remains one of the most effective methods for lead generation. However, it can be a challenge to build an email list. One technique that marketers apply to address this is the use of rental lists.
What Is a Rental List?
A rental list or acquisition list is a compilation of names and contact information gathered by a third party. The information can be collected from a national database or built by gaining permission from individuals specifically for marketing purposes. The party who compiled the list then leases its use to businesses and marketers.
For businesses without an organically grown list, a rental list can help reach audiences targeted by demographics, interests, or other criteria. It can increase open rates and decrease bounce rates without the steep cost of buying email lists or building one organically.
Why Use Rental Lists
Get immediate data
When you’re starting a business or entering a new market, you’d want to get a list of prospective consumers fast but may not always have the time or manpower to do so. Using a rental list gives you an instant prospect list to start your promotions with.
Gain access to a wider database
Getting an acquisition list from a third party enables you to access information from a wider database. Rental list providers typically have a massive database of information that they have accumulated over the years. So you get to have high-quality contacts even without building a database of your own.
Decrease your acquisition cost
Using rental lists entails lower acquisition costs compared to other methods. You get quality leads without having to buy targeted email lists. The decrease in costs can be substantial, giving you faster ROI on your marketing campaigns.
Save time and effort
Creating your own list takes time and effort. Gathering data, requesting permission, and consolidating information are time-consuming and tedious work. By using rental lists, you still get ample exposure to your target audience without having to do all the legwork yourself.
Increase open rates and conversion rates
High-quality rental lists are typically permission-based. Since people respond more positively to correspondence they signed up for, they are more likely to open your emails. If the rental list is segmented, you’re also more likely to see your conversion rates increase.
Downsides of Rental Lists
While rental lists provide a great shortcut to list building and targeting, it also has a few drawbacks. For one, some business clients frown on its use because some unscrupulous parties acquire lists using dubious methods. Another downside is a high bounce rate when the rental list is compiled poorly.
As for legal repercussions, renting lists per se is not illegal. However, there are some policies against sending unsolicited messages. Due diligence must then be practiced when using a rental list, so you don’t ruin your brand image.
Tips on Using Rental Lists
- Acquire rental lists only from trusted third parties who are transparent on how they gather information.
- Make sure that names, numbers, addresses, and other information were legally and properly sourced.
- Clearly mention your brand and business detail, and inform recipients why they are getting an email from you.
- Avoid using deceptive subject lines or headers.
- Give the recipients from the rental list an option to unsubscribe from your messages any time they wish to.
- Allow recipients to opt out, and make sure to remove them from your email list.
- Use rental lists where data is segmented, so you can reach a targeted group who will find your content relevant and useful.
- Limit the frequency of your promotional campaigns to avoid spamming the recipients.