Why are so many businesses still buying email lists?

November 3, 2024

Last week, I met up with an old acquaintance who runs a small tech company specializing in software for property management.

We hadn’t caught up in a while, but as we talked about his latest business initiatives, I could see how excited he was.

He was in the process of launching a new product aimed specifically at property managers who oversee multiple rental units—what he believed would be a game-changer for his business.

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As he outlined his plans, he mentioned that email marketing seemed like the perfect way to get this new service in front of property managers.

But there was one problem: he didn’t have a list of property managers he could contact.

This led him to ask a question that many businesses ask themselves:

“Should I consider buying email lists to quickly connect with a large group of potential customers?”

It’s a tempting idea, but the reality of buying email lists isn’t as simple as it seems.

Let’s dive into why so many businesses still resort to this strategy and what the real risks are.

Why businesses choose to buy email lists

The idea of buying an email list is appealing for several reasons.

First, there’s the speed.

For businesses like my friend’s, launching a product is a race against time. A purchased email list feels like a way to save weeks, if not months, of effort.

Second, it seems cost-effective.

Compared to running ads or creating content to attract subscribers, purchasing a list can feel like a bargain. Why spend months growing a list when you can pay for one and start emailing today?

Lastly, there’s a belief that more is better.

Businesses often think that sending emails to thousands of people increases the chances of making sales. Unfortunately, this isn’t always true.

Purchased lists are often low-quality, filled with outdated or irrelevant contacts.

The risks and challenges of purchasing email lists

As I explained to my friend, buying an email list comes with serious risks that many businesses don’t consider.

a) Legal issues

Sending emails to people who haven’t given consent can lead to hefty fines or legal action.

For instance, in 2021, three major UK brands—We Buy Any Car, Sports Direct, and Saga—were collectively fined £495,000 for sending unsolicited emails.

b) Damage to reputation

Email providers, like Gmail and Yahoo, track how recipients interact with your emails.

If too many emails bounce (i.e., are sent to invalid addresses) or get marked as spam, your sender reputation is harmed.

This reputation is crucial because it influences how likely your emails are to reach inboxes rather than being sent to the spam folder.

A poor sender reputation can cause your future emails to be automatically filtered out or blocked, even if your audience genuinely wants to hear from you.

c) Spam complaints and blacklisting

People on purchased lists often don’t know your business.

When they receive your emails, they might flag them as spam. Too many spam complaints can get your domain blacklisted, making it impossible to reach any audience.

d) Erosion of trust

Perhaps the biggest risk is losing customer trust.

When emails are sent to uninterested or annoyed recipients, it damages your brand’s image. A negative first impression can be difficult to recover from and can hurt your business in the long run.

Building an email list the right way

Instead of buying a list, I encouraged my friend to consider organic list-building strategies. These take time but offer far better results.

One of the simplest ways is to create a lead magnet.

This could be a free guide, checklist, or exclusive content that property managers would find valuable. By offering something helpful, you can attract people genuinely interested in your product.

Another strategy is hosting webinars or live events.

These provide value while giving attendees a reason to join your email list. Social media campaigns and contests can also be effective, especially when combined with targeted ads.

Don’t forget the power of social media.

Platforms like Facebook, LinkedIn, and Instagram allow businesses to build communities and attract potential subscribers. By sharing valuable content, engaging with followers, and promoting lead magnets, you can grow your email list organically.

Social media ads can also be used to target specific groups, like property managers in my friend’s case, to drive traffic to your landing pages or sign-up forms.

Partnerships can also play a big role.

Collaborating with other businesses, influencers, or even complementary service providers in your industry can help you tap into new audiences.

For example, partnering with a company offering related services can help you co-market and share each other’s email lists (with proper consent, of course).

The key is consent. When people willingly subscribe to your emails, they’re more likely to engage with your content.

Case Study:
Purchased vs. Organic Lists

Let me share an example from a company I worked with that was selling solar panels.

Initially, they purchased a list of 10,000 email contacts, hoping to reach a large audience quickly. After sending their first campaign, they only saw a 4% open rate and a 0.3% click-through rate.

Unfortunately, they also received 70 spam complaints, which led to their email provider, Brevo (formerly SendInBlue), suspending their account for violating spam policies.

This forced them into the frustrating process of regaining access to their account, further delaying their marketing efforts.

When I took over their email campaigns, we made the decision to abandon the purchased list and focus on building an organic, opt-in email list.

We started by offering a free downloadable guide on the benefits of solar energy, which attracted individuals who were genuinely interested in solar panels.

After several months, they had built a list of 5,000 engaged subscribers who were truly interested in solar energy solutions.

When we launched their next campaign, the results were remarkable: the open rate jumped to 40%, and the click-through rate hit 10%.

This shift from a purchased list to an organic one didn’t just improve their email performance—it also helped them build a stronger, more trusting relationship with their audience.

Building relationships that convert

As we wrapped up our conversation, I emphasized one thing: email marketing isn’t about sending messages to as many people as possible. 

It’s about building relationships with people who trust your brand.

Organic list-building takes time, but it’s an investment in long-term success. It helps businesses create meaningful connections that lead to sales, referrals, and repeat customers.

My friend left with a clear plan to grow his email list organically.

And I left knowing that one more business was on the path to ethical, effective email marketing.

Let’s build your email strategy

If you’re considering buying an email list, let’s talk first.

I can help you create a strategy that grows your audience the right way—organically. Contact me today to start your journey toward email marketing success.

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