What is a List Broker and Why Do I Need One?

Are you planning to conduct a direct marketing campaign? Whether your campaign is for direct mail, email or telemarketing, hiring a list broker can help you reach your target customers.

In general terms, a broker is someone who mediates between a buyer and a seller over an agreement, for example in selling a property or an investment. It is also the job of a broker to assist a prospective buyer in looking for ideal real estate property or services. The terms and conditions followed by the broker are the ones set by both parties, settled into mutual agreements. There is a certain percentage from the sold property that shall be given as a form of brokerage fee.

Another type of broker is the mailing list broker. In marketing, it is important to collect and sort viable mailing addresses of prospect clients. The job of the mailing list broker is to categorize random sets of clients into demographic groups based on the qualifications set by the client.

Why Do I Need a List Broker?

Whether you are a large or small scale business, you can definitely take advantage of the benefit of hiring a list broker. Take note that there is no need to hire in-house brokers because even multinational brokerage firms are outsourcing these people. Consider the amount of savings you can have by outsourcing a list broker. The mailing list company takes care of sending correspondences to prospects and in turn attends to all inquiries. Once the list brokers have shortlisted potential buyers of your products and services, they will forward the list and you are now responsible for follow ups.

Email list brokers can also be categorized as a part of the business processing industry. Most agents deal with clients on an offline basis, only via emails. One advantage of contracting mailing list brokers is that you are given 50% to 80% sales opportunities instead of allocating most of your resources to gather and sort prospects.

However, not all list brokers can assure you of such figures. Choosing the right mailing list brokers for your company would mean that they should be able to stand by their figures. Some brokers of this type are tied up to marketing research firms where they get their information for professional contacts. These brokers should be able to stand by their list proving that their data will be able to bring you results.

But in reality, email listing is both a tedious and frustrating job. More often than not, it stems into numerous unexpected problems. Sometimes, leads can result into a dead-end and if not handled properly, it can be majorly time consuming and unreasonably expensive. Email listing entails extensive research of the specific group of audience you are targeting. You can easily identify a poorly-researched listing through the following criteria:

  • Dead addresses and returns
  • Addresses of deceased or under-age prospect clients
  • Duplicate entries
  • Emails of inappropriate subjects
  • Incorrect names, titles, gender identifiers etc.

Email listing companies are continuously evolving and improving in terms of accuracy, timelines, and appropriateness.