Should You Hire a List Broker?
List brokers represent one or more direct mail lists. Get tips on whether you should hire a list broker or buy direct.
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A list broker is someone who represents either one or more data lists.
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They generally specialize in particular types of lists and sell the information on behalf of the data owner for a commission.
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The commission is paid by the list owner so there is no extra cost to you for using a list broker.
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The good list brokers are specialists in reaching particular types of people, so you will be buying their expertise and thus saving time and money in reaching your target audience. Since the direct mail list accounts for 40% or more of the success of a direct mailing, an experienced list broker can be extremely valuable in guiding you about what lists to buy and what list selections to use.
Where do list brokers get their data?
They buy from list compilers. These are the companies that originate and update lists which they sell directly, as well as through a large network of list brokers. Of the 183 list compilers listed by the Direct Marketing Association, there are just a few large companies who have the greatest market share and revenue. The other list compilers create and sell specialized lists like only email addresses, only telephone numbers, trade show participants, etc. Top Suppliers of Direct Mail Lists identifies the top list compilers.
Why buy direct from a list compiler vs. using a list broker?
- You are buying direct from the list originator. So, when you ask questions about the list, you're talking directly to the source and someone most familiar with their data.
- You should pay less overall. You'll pay the same cost for the list whether you buy direct or through a list broker, but since many list brokers add on fees, your total cost may be slightly lower if you buy direct from a major list compiler.
- If you are buying a small number of names, mailing list compilers may take orders for as low as $300, lower than what list brokers may accept.
Most of the people selling lists are list brokers
List brokers buy the data (names/addresses/other selection criteria) from the major list compilers. Some of these list brokers are generalists but most specialize in reaching particular types of vertical markets and target audiences.
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