Last week, I touched on the
specialization that exists in our industry. Email fits into
that distinction. Many sites find it not worth the effort to
try and make money with their list. The complexities of
getting mail past the ISPs, past the various filters, and
into the inbox almost guarantee that two or more full time
resources are needed. Such a high cost for unpredictable
gains can only make a sound person question the value of
allocating any resources towards that business unit.
Consequently, it opens the door for specialists, ones who
can offer gains at a fraction of the cost and risk.
We asked several of the
leading specialists about the business. In some ways, the
nature of fully outsourced email providers resembles the
search engine optimization and search engine management
landscape. At the end of the day, all do the same thing as
far as the client is concerned. They make more money using a
certain distribution channel better than can be done
in-house. You have a limited number of truly capable
companies going after a rather static number of large to
medium size clients, each trying to position their services
in a way that makes them seem like the one to choose.
Historically, convincing a
list owner to accept a fully out-sourced solution was not an
easy sell. Saying that they will no longer control what ads
their users see, when, or know exactly how much they earned,
would have made for a quick call – unless of course you are
Google AdSense where such practices are standard, i.e., not
knowing what will show on your site or what you are making
exactly. People in email still assumed they could do better
and didn’t want to take the risk of making less. Now, it’s
hard to make less, so many potential clients appear ready to
let go in hopes that someone can make money off the names.
They care more about the total dollars at the end of the day
than the granular details driving that revenue.
In corresponding with some of
the leading full-service email monetization companies, we
learned that while a lot has changed, much remains the same.
Delivery still ranks high on the constant challenges. No
magic formula exists for exacting more revenue out of a
person than they are worth. Good names make more than bad
names – that hasn’t changed. What has changed is the
technology. More than ever before the level of technology
needed to extract maximum value out of a name has risen to
new heights in complexity. The average person simply can’t
compete or buy an off the shelf equivalent. Depressing as
that might sound, it is still a good time to be a list
owner. Highly specialized companies exist and want to earn
your business. They won’t tell you their secret sauce, but
you will receive better service than you did when more lists
than list managers existed. As Zac's company said, “very few
responsibilities aside from delivering the database are
expected of our partners, who can relax, view online
real-time revenue reports, and expect regular direct
deposits from us on a monthly basis." In other words, email
in this respect has become legit with list owners able to
actually put trust in the companies that manage their list.
How do you know which to
choose? That’s hard to say. The best advice is still to talk
to several and see how you feel about them handling your
business. Get references and talk to others you know who
might already be working with one. See if certain companies
appear to be stronger with certain types of lists than
others. Know that your list might not make a good home for a
particular company and that either party may turn the other
down. The number of variables for making money is relatively
fixed. Each firm has found a way to manipulate these levers
differently as they attempt to extract maximum value out of
the available opportunities. Don’t expect to hear exactly
how they do it, but you can get a feel for what, if any,
contextual and behavioral targeting they use. You can get a
sense for their level of connectedness to the ISPs, their
awareness of the market and response to changes in the
environment. This is by no means a comprehensive guide, but
perhaps it can help those scratching their heads.
As with any emerging field, it isn’t perfect.
Remember, these new age direct marketing email firms do not
practice customer relationship management; they do not focus
only on sending or enabling communication from client to
customer. These companies offer list owners a highly
advanced means to make money. The list owner simply needs to
handover the controls. With the handoff comes freedom from
many of the costs and headaches, but it doesn’t necessarily
free the database owner of the liability resulting from an
angry subscriber. That’s why list owners still need to play
an active role in managing their brand. The burden of
restraint rests solely on you – be it frequency, content,
and/or customer service. No matter who is watching over the
list, it’s still yours. Now, go (finally) make some money
with it.
Author’s
note: I would like to extend our thanks to those companies
that took the time to share a little about their business.
For users interested in learning more, we offer up the
following companies and contact (in no particular order). In
this space and not mentioned here? Then tell us and we’ll
make sure to include you in the next issue.
Datran
Media –
(212) 706-9781 x:206
sean@datranmedia.com
Sean O'Neal
Hydra
Media Group – contact Zac Brandenberg
zac@hydragroup.com
IDesktopMedia – contact Evan Greenberg
evangreenberg@idesktopmedia.com
JDR Media
– contact Dan Young
dyoung@jdrmedia.com
Vayan
Marketing Group – contact Maureen Burke
maureen.burke@vayan.com
Topica
- contact David Buckmaster
davidb@get.topica.com
Jay Weintraub
