When we talk about email lists, we usually mean two things. First, it can be the cost to buy a list of email addresses. Second, it can be the costs linked to building your own list. Both have different price tags. Also, each has its own good and bad sides. We will explore both options in detail. This way, you can make the best choice.
The return on investment (ROI) for email marketing is usually high. Some studies show a return of $36 for every $1 spent. This makes email a very good way to market. However, you need to think about the costs involved. These costs are not always just about buying names. There are other hidden costs too.
Understanding Email List Costs
The price of an email list can change a lot. It depends on many things. Think about the quality of the emails. Think about how many list to data are on the list. Also, consider the type of people on the list. For example, a list of business contacts might cost more than general consumer emails.
Prices are often given as "cost per mille" (CPM). Mille means one thousand. So, CPM is the cost for every 1,000 email addresses. A typical consumer list might be $200 to $400 CPM. A business list could be $300 to $600 CPM. Therefore, a list of 3,000 consumer contacts at $300 CPM would cost $900.
Factors Affecting Email List Prices
Many things make email list prices go up or down. Quality is a big one. A good list has active people. These people want to get emails. They have agreed to receive messages. High-quality emails cost more but give better results. They bring more sales.
The size of the list also matters. Bigger lists often cost more. This is because they reach more people. However, sometimes the CPM can go down for very large lists. This happens when you buy a lot of emails at once.
Another factor is how targeted the list is. A list for a special group of people will cost more. For example, if you want only doctors in a certain city, that list is special. It is harder to get. So, it will have a higher price. More general lists are cheaper.
The freshness of the list is also important. How recently was it updated? Old lists might have many bad emails. These bad emails do not work. They can hurt your sending reputation. A list that is kept up-to-date is more valuable.