2023-11-30 2:32 pm
2024-03-04 3:47 am
2024-03-22 9:03 am

How Much Are Email Lists Worth? A Detailed Pricing Guide

Email marketing is an essential tool for modern businesses, but an email campaign is only as good as the email list it’s based on. But how do you work out the value of an email list, and are they worth it?

Read our in-depth guide because it takes a deep dive into the world of email lists, providing intelligent insights to help you maximize the success of your campaigns.

We cover:

  • What email lists are and how they work
  • Factors that determine the value of an email list
  • How to calculate the worth of your email subscribers
  • How to choose an email list provider
  • Frequently asked questions.

What are email lists?

what are email lists?

Email lists are email addresses that businesses use for their email marketing campaigns. They can be targeted to specific audiences, including performing email searches by name, and may include contact information details such as names, addresses, and demographics.

You can either put together your own or buy email list directly from Bookyourdata — and yes, it is totally legal!

Email lists are not a magic tool for marketing success, the success of an email campaign depends on the engagement rate of subscribers and is influenced by the source of acquisition.

Bookyourdata

For example, an email list from a proven provider with a big business-to-business database like BookYourData aligns with industry benchmarks and standards, and the success of your campaign reflects its quality and relevance.

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How Do Email Lists Work?

Email lists are the foundation of email campaigns and form the basis of increasing engagement in your promotional offers, product launches, or regular newsletters. There are a few steps to using an email list:

  1. First, a business must acquire email addresses. This can be through a specialized platform like BookYourData, signups on your business landing page, or other methods. 
  1. The next step is segmenting the email list. The list varies based on segmentation and targeting capabilities; you can search and group individuals based on demographic details, buying behavior, or other factors. For more insights on segmentation, read about using a B2B database effectively.
  1. Next, the emails need to be created — and content matters! Ensure your emails are well crafted and offer value to your customers. 
  1. After the emails are sent out, keep track of how successful your campaign is. The conversion rates of past campaigns determine your success, so make sure you carefully analyze your data. 
  1. Keep your email lists maintained. Your success increases with the recency of subscriber interaction. Positive results in email campaigns correlate with the frequency of updates and cleanliness of your list, so keep that list maintained and clean!
  1. Ensure you’re following all data privacy rules! Adherence to the law relies on your email list provider's compliance and opt-in methods, so choose wisely. BookYourData is GDPR and CCPA-compliant, which will give you peace of mind. 

What Is the Value of an Email List?

Drawing from our experience, well-maintained email lists are a crucial marketing tool. Purchasing a list is justified by the return on investment (ROI) it can generate. It’s essential to remember that the value of an email list is subject to the breadth and depth of data points provided and is impacted by the overall reputation of the list provider. 

An email list is vital for businesses — it increases the chances of profitable conversions and improves customer engagement. It’s not just about the number of contacts; it’s about the quality and relevance of every contact on that list. 

Benefits of Having a High-Quality Email List

benefits of having a high-quality email list

Drawing upon extensive testing, we’ve found that high-quality email lists have many benefits for businesses. Let’s break down what you can gain from focusing on quality rather than quantity:

Increased Reach and Visibility

A high-quality list can hugely enhance your company’s reach. When email lists have been acquired via a legitimate method that relies on the compliance and opt-in methods used, you can be confident your emails will end up in people’s inboxes rather than their spam folders.

This increases the chances your content, products, or services offer will be seen by customers who value it. A well-maintained email list aligns with industry benchmarks and standards, ensuring your company is competitive and successful. 

Improved Targeting and Segmentation

The success of your email campaign varies based on segmentation and targeting capabilities. With a high-quality list, companies can segment email addresses based on various criteria to ensure your email campaigns are more relevant and your engagement improves.

For example, sending product offers to someone with a history of purchasing that particular product type will give you better results than a less targeted approach. 

Increased Conversion Rates

Conversion rates are a great indicator of the value of your email list. High-quality, well-maintained lists are more likely to get results, as it means that your subscribers are engaged and interested. The conversion rate correlates with the frequency of updates and cleanliness of your list, so high-quality lists are paramount. 

Improved Return on Investment from Email Campaigns

Our findings show that a high-quality email list can hugely boost the ROI of your email campaign. When every email on your list reflects its quality and relevance, sales will be higher, ensuring the campaign is justified by the ROI it can potentially generate. The cost of an email campaign fluctuates according to market demand and trends, but a good email list can consistently improve your return on investment. 

Why Is Knowing Your ‘List Value’ Important?

Knowing your list value is essential for all businesses engaging in email marketing. This allows you to gauge the revenue generated by your email campaigns vs. the cost of putting together the campaign. Each dollar spent on the campaign is weighed against the potential revenue it can cause so you can stay on top of your finances and make smart business decisions. 

Factors That Determine the Value of an Email List

So, what determines the success of an email list? Our investigation demonstrated that there are several key factors to bear in mind when assessing an email list’s value:

Quality of Email Addresses

The value and success of an email campaign correlate with the frequency of updates and cleanliness of the list. Quality email addresses mean fewer emails will bounce, and the engagement and clickthrough rate (CTR) will increase. 

Overhead Costs

Factor in the costs of maintaining an email list against the potential sales revenue. The value of an email list fluctuates according to market demand and trends, so it’s essential to ensure the ROI is favorable. 

Optimal Time Span

The value of your email list increases with the recency of subscriber interactions. When a list is recently acquired or recently updated, it’s of higher value and will yield better results. 

Engagement Rate

Value and success rates depend on the engagement rate of the subscribers. If the engagement rates are high, you’re more likely to have sales because the content resonates with your audience. 

List Size

Although size matters, the most important metric for email lists is the number of active list members. The value of the list is proportional to the number of active subscribers — the more active participants, the higher the value. 

Segmentation

A campaign’s success varies based on segmentation and targeting capabilities. Lists segmented by demographics and preferences mean you can tailor your campaigns and achieve better sales results. The exclusivity of the list enhances success, so make sure you choose quality over quantity. 

Relevance

The relevance of your email to your targeted audience directly affects engagement levels and conversion rates. Using demographic information to make your content relevant to your audience increases the value of your email list.

When your email content is relevant, you will have more visitors to your website and more customers clicking on links in your emails. 

Recency

Ensuring your list is compiled of email addresses with recent subscriber interactions shows that you’re contacting people interested in your product or service. This increases the value of the list and helps with conversion rates. 

Opt-In Method

The value of your list relies on the compliance and opt-in methods used. When you use voluntary opt-in to build your list, you ensure you adhere to all legislation and increase your list's value. 

Bounce Rate

The success of your list is affected by the deliverability rates. Low bounce rates show that email addresses are valid and worthwhile spending money on. 

List Cleanliness

An email list’s value correlates with the frequency of updates and cleanliness. Regularly cleansed lists devoid of inactive addresses are more valuable.

Demographics

The success rate of your campaign is contingent upon the demographic details available. Detailed demographics mean improved targeting and better campaigns. 

Purchase History

Based on our observations, lists that include purchase history are incredibly valuable. This means you can target your promotions at people with a proven interest in particular product types, allowing you to target your offers for better value. 

How to Calculate Your Email List Value

how to calculate your email list value?

How can you determine the actual value of your email list? Follow the below steps to work out its worth:

Step One: Determine a Twelve-Month List of Revenue

Review the past 12 months of email campaign revenue and calculate the total. This includes every sale and conversion you can attribute directly to your email campaign. 

Step Two: Subtract Costs From Revenue to Find the Net

Now, deduct all associated costs. This includes the cost of the list itself, as well as any other fees and maintenance expenses associated with your email campaigns. 

Step Three: Find the Total Number of Active Subscribers

Figure out how many of your subscribers are active. This means that they regularly open your emails and engage with the content. Regarding your list, this figure reflects its quality and relevance. 

Step Four: Divide Net Revenue by Active Subscribers

To work out the value of each subscriber, divide the net revenue by the total active subscribers to get a per-subscriber value.

For example, let’s say you achieved $12,000 in lost revenue over the past 12 months, and your costs total $3000. This means your net revenue is $9,000. If your number of active subscribers is 5000, then the value per subscriber is as follows:

$9000/5000 = $1.80

This value aligns with industry benchmarks and standards, so you can compare your results to similar companies. With a well-managed list, you can greatly increase the worth of each subscriber, leading to increased revenue and engagement. 

How Much Is an Email List Worth to Your Online Business?

An email list can be precious to an online business, but the importance of list quality cannot be overstated. The value varies based on segmentation and targeting capabilities and depends on the engagement rate of subscribers — the RIO justifies what it can potentially generate. The list’s worth also increases with the recency of subscriber interaction. A list filled with dormant subscribers is far less valuable. 

How Do You Choose the Best Email List Provider?

So, how do you choose the best provider? Our analysis has shown that there are several factors you want to consider when making your choice:

Reputation

Choose a provider validated by testimonials and case studies that align with industry benchmarks and standards. BookYourData is an excellent example of a company with glowing testimonials from satisfied customers and #1 ranked by G2 as sales intelligence platform.

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Compliance

A good provider relies on compliance and opt-in methods, ensuring they adhere to regulations such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). This way, you can be confident your business is on the right course, operating within the bounds of the law, and that you won’t be risking fines. 

List Quality

The success of a list reflects its quality and relevance. Ensure your chosen provider has a high accuracy rate — BookYourData boasts a 97% accuracy rate!

Opt-in Methods

Providers that use explicit opt-in methods are more likely to operate within regulations. Subscribers who willingly provide their email addresses have more potential to engage with the content, leading to higher conversion rates. 

Segmentation Options

A provider’s value varies based on segmentation and targeting capabilities. Examples include those allowing tailored email campaigns based on demographics, industries, job titles, location parameters and preferences. Bookyourdata provides 100+ data points to filter of 250M direct b2b contacts.

Deliverability Rate

The deliverability rate shows how many emails reach an inbox vs. how many are bouncing or being flagged as spam. The higher the rate, the more successful your email campaign will be. 

Pricing

Look at the price structure of the list provider — you want to ensure you’re getting transparent pricing and value for your money. BookYourData offers 10 new leads completely free, without even entering your credit card info, so you can see how worthwhile their product is without spending a cent!

Frequently Asked Questions

What Is the Rate for the Average Email List?

Email list cost varies hugely based on the provider, industry, and data quality. Bookyourdata’s pricing structure is highly transparent and is scaled depending on how many records you want to purchase.

Many believe free or cheaper alternatives are available, challenging a professional email list. Still, those alternatives will always be of lower quality and lead to a worse ROI. 

How Can I Calculate Email Subscriber Value?

You can determine the CPM of your email campaigns as follows:

Calculate the total revenue associated with mailing list campaigns over 12 months. Subtract all associated campaign costs from this revenue to get the net revenue. Divide the net revenue by the total number of active subscribers. This will give you an idea of the value per person for that period.

If I Purchase a List, Does That Mean I Own It?

This depends on your provider. You will have the right to use it for marketing purposes, but some agreements might stipulate you can only use the list for a single campaign. Ensure you read all the terms and conditions associated with the campaign before deciding on your provider.

Final Thoughts: Core Takeaways on How Much Email Lists Worth

Email lists are incredibly helpful resources that let businesses drive engagement and make sales. The value of the list is determined not just by the number of email addresses but also by the quality of the contact information and the relevance of the subscribers.

Email lists are the basis of a successful email campaign. The best lists combine segmentation, engaging content creation, regular maintenance, and strict adherence to data privacy laws to provide a quality product for businesses.

The value of an email list is determined by a range of factors, including the quality of the email addresses, engagement and interaction rates, and the segmentation of the list. When you have a high-quality list, you ensure your emails are not marked as spam and that you get a good ROI.

The value of your list can be calculated by dividing your net revenue by the number of active subscribers. This lets you compare the value of your list against industry standards.

When choosing a list provider, look for one that adheres to compliance standards, that has a good reputation, and that offers high deliverability and transparent pricing.

While email lists can hugely boost your email campaigns, quality is always more important than quantity. Using a reputable provider like BookYourData is truly worth the investment, and brings a better ROI and peace of mind.

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