Question

Topic: Other

How Much Should Contacts Cost?

Posted byjoshnasonon 125 Points
We're having an internal discussion here about the practice of purchasing contact lists through Tower, etc. I can't get my head around how much a contact should cost? Is there an industry-standard (i.e. .50 per contact, $1 per, etc)?

Obviously, more qualified are more valuable but how much is a name worth?
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RESPONSES

  • Posted on Accepted
    I know of no pricing standard. In general, the recency of compilation, and the cost to acquire the contacts by the supplier, the demand for the leads, and the quantity you purchase will affect the price.

    A name (lead) is worth precisely what you are able to sell them. In a nut-shell, if you are selling a $50,000 product/service, and you are closing a certain percentage of sales, that lead may be worth a few hundred dollars. To someone selling a $19.95 product, that same lead may be worth $.20 cents.

    What does it cost you to acquire leads from your in-house lead generation programs? If you are able to generate viable leads for $10.00 each, then you wouldn't what to pay more.
  • Posted bymgoodmanon Accepted
    schulte is exactly right. The range is from a few cents to a few thousand dollars, depending on what you're selling, what qualifications you're setting, and what your margin is.

    Even if you knew that the "average" were, say, $21.50, it wouldn't tell you if that's even close to what you should pay. It could be 1/100th of that amount or 100 times that amount ... or more or less.

    Better to start by figuring out what leads are worth to you and then figuring out whether you can buy them for that price.
  • Posted byflangeron Accepted
    but it's illegal! you cant buy or sell any contacts, it's immoral. Also, its a ground for spamming, cause i dont think someone who didnt subscribe to your letters would be happy to get them

    Zakk at [URL deleted by staff]
  • Posted on Accepted
    Hello,

    All of the responders to your question are 100% correct and valuable advise.

    There are no standards on what a list owner can charge for their list. It is all supply and demand.

    You need to define who your customers are, age, income, title, industry etc.. Once you have a clear profile of who your best customers are. then you can research the potential lists available to you. i recommend you hire a list broker to help you navigate the 73,000 + lists on the market. A high price is not always a good indicator of quality. A list that matches your customer profile is what you want.



    Flanger's reference to SPAM is another reason to hire a list broker to help you avoid those types of lists. Brokers only deal in opt-in permission base lists. Immoral, you say. Go to the post office and request that all 3rd class mail be stopped at your address. Then go to:www.the-dma.organd sign up for the do not mail list. That will stop most of the advertisements you don't want.
    If it wasn't for the direct marketing industry, you would be paying over $1 to send out your first class mail.



    Thank you

    Tom

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