- June 2004, DMAW Advents

So, you’re thinking about putting your list on the rental market …

by Rita O’Neill  

Through your own marketing efforts, you have accumulated a base of donors, members or buyers that have responded favourably to your direct response efforts. You’ve been told that you are “leaving money on the table” by not renting them. You’ve been told marketing your list represents an offset to marketing costs, but are concerned about the impact of doing so. You really want a clear vision of how it works, what to expect and when to expect it. You want to know your names will be protected. What now? You are looking for a good list manager. 

Your list is your most valuable asset and you are right to be concerned.  Most importantly you should have, and receive, good information. Your list manager will be the gatekeeper, but they’ll need your help.

Finding a List Manager.  Ask around. Gather the names of reputable list companies that have an established record “renting” similar names and take a close look at them. Consider what experience you want to have in the process and why you are considering putting your list on the market. You want a manager with a reputation as a strong marketer, one with integrity and a proven ability to meet expectations. Provide a laundry list of information needed to the potential list companies so they might thoroughly understand what your file is, how it was created and provide realistic expectations.

Number of Names Available. Total volume of the “marketable segment”. Decide what segment you will make available for list rental. 

Schedule of Mailings, Updates and Volume Increases. How many names do you anticipate adding over the next 12 months?  Will you be adding names monthly? Quarterly? When will you be mailing your names so those dates can be protected?

Source of Names. Are these names direct mail generated, Internet generated, telemarketing generated, etc. Can they be identified by source? Can percentages be given?

List Profile. Provide your list company with any studies, surveys, demographic information promotional pieces, and the mission statement you have on hand to help them understand exactly who is on your list.

Report Requirements. This is of particular importance to your accounting people. You will want to know that the list company can provide you the detail you need internally to coincide with your existing practices.  

Service Bureau/Fulfilment Capacities. This function should be briefly described in your request for proposal, along with any information about selection process, capacities, turnaround time, media, etc.

Restrictions. Indicate up front what you will and will not consider. If you will not rent to your competitors, than provide a list of them. Another example of exclusion would be an organization that decides to never make their names available to a “free” or “soft offer” if they never utilize that technique. As the list owner, you have final and ultimate approval.

A good list manager should be able to tell you the following based on what you’ve provided:  

Sales and Marketing Efforts. How do they plan on positioning your list and to whom? This should include a list of potential test mailers and markets. This might even include a draft of a rate card, describing your list and potential pricing of segments made available. Preliminary projections based on test marketing may or may not be included. Any projection scenario provided by the list manager hinges on the list’s performance and the consistency of updates and size. Ultimately, you want them to show you they can bring in the tests.

Advertising and Promotion. Resources designed specifically for the list community include SRDS, Marketing Information Network, Nextmark, and listings in publications such as DM News, Target, Direct, and Non-Profit Times, to name a few. The list company in most cases covers these costs. A promotional schedule should include attendance at industry gatherings, fax blasts, email, and direct mail, and include objective, time frame, quantity, and targets.

Approval and Order Process. A brief description of the structure and support they have internally for count requests, purchase orders, updates, and tracking. A copy of a list rental agreement, clearance requests samples and a description of the order process start to finish should be covered. The list company should have in place the ability to maintain records regarding exchanges and reciprocal agreements.

Invoicing, Collections and Payments. Sample reports should be forwarded on all of these functions and include a schedule of reporting and payments.

Recommendations. The list manger, having reviewed your information, might discuss with you ideas that could enhance your list performance and revenue generation.  

Finding the right company to market your names is a big decision.  Arm yourself and the candidates with as much information as possible so that both parties end up knowing enough about each other to make the right recommendations and decisions.