Making money from your database

Amid the fast moving developments of the Internet era there are many mailers whose lifeblood is through traditional direct mail. Added to that, increasingly Internet start-ups are using direct mail to drive traffic to their sites. All this makes for a growing demand for new lists.

There are multiple benefits from putting your database on the list rental market apart from the obvious - making money! Regular customer mailings add to the updating process and improve the overall quality and usability of the file. Whether you have a compiled or customer file the revenue can be of a significant level that requires a dedicated team for management and processing. Some of the things to consider / include:

Addresses - ensure any addresses to be rented are fully post coded and that fields are consistent.
Enhancing data - consider overlaying or adding fields to data such as industry codes or telephone numbers which add value to the file.
Management- consider whether to set up an in-house team to market list(s) or whether you want to place the job with a list manager. List managers usually take 30 per cent commission and depending on expected revenue this may be a more economical option.
Output - counts and orders - standard software is available for list counts and processing that can be run in-house or the job can be given to a data processing bureau that will handle all counts and processing. Again depending on each situation this may be a more economical route to take.
Delivery - the most common form of data delivery is email, although some mailers still want labels or disk. Check that your email system can send large zipped files quickly.
Service - list customers expect fast delivery of counts and orders. It is not unusual to have to provide counts within an hour and orders within a day. More and more mailers want fast delivery on counts and orders. Consider putting lists online to service orders and counts.
Returns - both returns and other customer feed back will need a route to the central file to ensure timely updates. A mailer will not want to see the same returns twice!
Pricing and market position - there are several good publications that can give an idea of similar files on the market and how much they sell for and what position each file has in relation to the market (Precision Marketing, Marketing Direct, Direct Marketing International).
Restrictions - if renting a customer base, think about restrictions, which companies you don't want to have access to files, seeding (dummy companies) to check usage and whether mailings should only be done through a recommended mailing house.
The best way to find all the information and support you need is by meeting others who are in the list business. Join your local or international Direct Marketing Association (DMA). A list of DMAs worldwide is available on www.galedirect.com.