Revnew Blog

10 Pros And Cons Of Buying Email Lists By Industry

Written by Ojesvi Singh | Aug 16, 2023 2:30:13 PM

Today, emails are the prime method for businesses to connect with clients. According to 2023 statistics, around 347.2 billion emails were sent and received daily. 

This fierce competition makes buying an email list by industry more attractive. But can the benefits of buying an email list overshadow its drawbacks?  

Abhi Bavishi, a seasoned email marketing expert and the founder of AutoDeus Technologies Pvt Ltd (Smartify), says,

"The answer isn't black and white

It's a grey area where you must build lists for cold outreach without explicit permissions, but you’ll have a much better ROI if you build them using targeting filters with tools like Apollo.io, AnyLead, ZoomInfo, etc."

So, let us see the 10 pros and cons of buying the email list.

10 Pros Of Buying An Email List

Buying an email list can have multiple benefits. From giving you ready data of the emails to connect to saving your time researching, you can benefit significantly from the email list. 

Thus, you get the details of potential untapped clients.

In fact, as per Hubspot, 64% of B2B marketers suggest using email marketing is the most effective strategy to meet their business goals. To understand this better, here are the top 10 pros you will get when buying an email list by industry.

1. Swift Delivery Through Instant Contacts

You instantly get access to many contacts when you purchase an email list. You do not need to wait for new prospects to join or sign up on your website. You can send a cold or welcome email once you get the list. Thus, you can quickly deliver your messages and offers on your product or service.

2. Time-Saver

Building an organic email list is a time-intensive process. Attracting potential subscribers, convincing them to opt in, and retaining them requires effort. However, when you purchase an email list, it lets you circumvent this lengthy process.

In fact, you can directly reach out to potential clients. Thus, you can initiate business conversations with them almost immediately. Thus, it accelerates your business outreach.

3. Expanding Reach to Untapped Markets

An acquired email list can open the doors to markets you weren't aware of or hadn't previously considered. This way, you can easily broaden your potential client base.

4. Relatively Cost Effective

You must be wondering,  how much does it cost to buy an email list? Purchasing one can be cost-effective compared to the cost and time of organically developing an email list. The price will depend on the industry and the number of emails.

"By finding a reputable email list broker who can offer a high-quality list at a reasonable cost, businesses can reach a substantial number of potential customers without exceeding their budget." ~ Matthew Ramirez, Founder, WriteLab, and Rephrase.

Even though the upfront cost might appear excessive, many firms find it cost-effective when they include the time and resources saved.

5. Increased Number Of Potential Leads

An email list essentially provides a robust pool of potential leads. The more comprehensive your list is, the larger the volume of leads you can aim to convert into customers.

It opens up opportunities for:

  • Offering personalized offers
  • Running wide-scale marketing campaigns
  • Maintaining a steady pipeline for your sales team to work with

6.  Minimized Dependence on Current Clients

If your client base is small, buying an email list can help you connect with new potential customers. Thus, your existing customers will no more solely drive your business revenue and growth.

7. Extensive Customer Base To Choose From

Purchased email lists often come with various potential customers. Through the list, you can tap into a range of your target:

  • Demographics
  • Client interest
  • Geographical locations
  • >Client needs and pain points

Thus, you get to present personalized offerings to such a broader potential customer base.

8. Shifted Focus On Other Business Affairs

Purchasing an email list eliminates the time and effort needed to accumulate one organically. Thus, you can spend your time on more serious business areas.

Thus, you can channel your time and resources into:

  • Enhancing your product offerings
  • Elevating customer service
  • Fine-tuning your strategic objectives

-This drives overall growth and efficiency in your company's operations.

9. Effective Business Growth

A robust email list can do these three things for you business:

  • Increase sales
  • Boost brand awareness
  • Increase customer engagement

This way, you can see a positive impact on your business. As a result, your market reach may also rise.

10. Testing Ground for Novel Marketing Approaches

With purchased email lists, you can test your different business marketing strategies or brand messaging. However, you need to monitor the response and engagement of different segments frequently. Thus, you'll refine your marketing efforts which will eventually improve outcomes.

10 Cons Of Buying An Email List

When you buy an email list by industry, you must be aware of the downsides too. So, here are the most prominent cons that you might face when you buy an email list:

1. Invasion Of Privacy

Purchasing an email list often means reaching out to people who haven't given you their explicit consent. In fact, they may see it as a breach of their privacy. Thus, it puts you at a high risk of ruining your relationship with your potential customers.

2. Complaints

Since recipients haven't opted into your communications, there's a higher chance they'll complain or mark your emails as spam. Frequent complaints can lead to email service providers flagging or suspending your email account.

3. Lower Engagement Levels And Spam

These people didn't voluntarily sign up for your emails. So they're less likely to engage with your messages. High rates of unopened emails, unsubscribes, or being marked as spam can harm your reputation and email deliverability.

4. Unqualified Prospects

The people on a purchased email list may not match your ideal customer profile. They may not even have any interest in your product or service or can benefit from your offering in any way. As such, you would waste resources on pursuing such unqualified prospects.

5. Higher Chance Of Cold Leads

Most contacts on a purchased email list are cold leads. It means they don't know  your business at all. Converting cold leads can be difficult if you don’t use the right strategies.

6. Invalid Emails

Frequently, the email addresses on purchased lists are invalid or out of date. You'll probably see significant bounce rates while sending messages to these incorrect addresses.

Thus, you may waste your money, and damage your sender's reputation. It could later impair your future email marketing campaigns.

7. Damage To Brand Reputation

"Even though the lure of quick gains is alluring, the potential long-term harm to your brand's reputation may outweigh the advantages. Long-term suffering may result from short-term gains." ~ Andrew Mavis, CEO and Founder, 98Strong.

People may find your emails intrusive or annoying, harming your brand reputation and trustworthiness. Furthermore, it may be challenging to regain existing and new client’s trust and credibility if your brand is connected to spam-like conduct.

Therefore, always uphold respectful and consent-based communication.

8. Possibility Of Same Contact Lists

Many businesses might buy the same email lists. It means the people on these lists are likely receiving multiple emails from brands like yours. This can make your communications less effective. Plus, it increases the chance of your emails looking spam.

9. Legal Implications

Dispatching emails to recipients without their explicit consent can invite legal issues. Numerous jurisdictions enforce strict digital communication and privacy laws. Therefore, non-compliance might cause you to pay substantial fines. Plus, it can cause reputational damage.

Thus, before purchasing an email list,  fully comprehend and adhere to these governing rules to avoid potential legal pitfalls.

10. Lack Of Targeted Segmentation

Purchased lists often lack detailed segmentation, making it difficult to target your campaigns effectively. Without segmentation, your emails may not resonate with recipients, leading to lower engagement and conversion rates.

Should You Buy An Email List Or Skip It?

While there are cons to buying an email list, it can serve well for some businesses under certain circumstances. But the next question is how to buy an email list.

There are several important steps to follow to ensure you maximize its potential and mitigate any risks:

Vendor Research


Ensure you are purchasing your list from a reputable vendor. You can do so by:

  • Looking for customer reviews
  • Checking their policies
  • Asking questions about how the data was collected

Clear Understanding Of Laws

Familiarize yourself with the laws and regulations in your country and the countries of your potential customers. It is vital to understand the legal obligations surrounding email marketing.

Data Quality


Ask the vendor about the quality of their data. You want to ensure the email addresses are current. Additionally, the people on the list should benefit from your product or service.

Segmentation


Segment your list by relevant criteria such as location, demographics, industry, etc. This way, you can tailor your message based on different segments. It's a great way to increase engagement.

Testing The List


Before implementing a campaign to the entire email list, run an A/B test. It gives you information on response rates and helps you refine your approach.

Personalization Of Outreach Efforts


Even if you didn't compile the list organically, you should still strive for personalization. It increases the chance of engagement.

Unsubscribe Option


Always include an unsubscribe option in your emails. In fact, it's legally imposed in many places and respects the recipient's right to opt out of your communications.

Metrics Monitoring


Monitor email data, including the following:

  • Open rates
  • Bounce rates
  • Click-through rates
  • Spam complaints and others

These metrics help you assess your campaign's effectiveness. Thus, you can make necessary adjustments.

Following these simple steps, you can quickly get an email list per industry.

Conclusion

You must carefully consider whether to buy an email list. We recommend you to weigh the potential benefits against the potential pitfalls. It might offer a quick way to gain potential leads, but it also poses certain risks, including possible legal implications and damage to brand reputation. If you buy an email list, follow the suggested steps to optimize your strategy and mitigate risks.

As an agency, Revnew understands the intricacies of outbound lead generation. We are equipped to guide whether purchasing an email list might be a suitable strategy for your specific business needs. Plus, we help you to learn to utilize such a list best if it's the route you choose to take.

FAQs

1. Is Buying An Email List A Good Option?

Yes, buying an email list can be a good option depending on your specific situation and marketing objectives. It can rapidly reach a vast audience, but it also has drawbacks, including the possibility of legal problems and reduced engagement rates. If you decide to buy, follow best practices and respect privacy laws.

2. Are Purchased Email Lists Legal?

The legality of purchased email lists depends on the jurisdiction and how the emails were obtained. In some countries, sending unsolicited emails to individuals without explicit consent is illegal. It's crucial to understand the laws in your country and the countries of your recipients before buying an email list.

3. What Percentage of Companies Buy Email Lists?

The percentage of companies that buy email lists varies widely by industry, business size, and marketing strategy. There's no specific percentage that applies to all businesses. It's more about whether buying an email list aligns with your  business objectives and marketing strategies.

4. How Much Do Email Lists Cost?

Depending on factors including list size, data quality, list targeting, and vendor reputation, the cost of email lists can vary significantly. It's crucial to pay more attention to the list's quality than price. An inexpensive list with low-quality data would probably produce subpar results, but an expensive, high-quality list might offer a higher return on investment.