"Is It Okay To Buy An Email List To Kick-Start My Online Marketing Campaign?"

Q: I received an ad offering me thousands of prospect emails for less than a few pennies per name. Is it okay to buy an email list to kick-start my online marketing campaign?

A: Unless you can confirm that the people on that database gave their permission to receive your solicitation, the answer is a loud and clear NO! You risk permanently harming your online marketing program if you cross the federal CAN-SPAM Act.

More importantly, there are legal and proven methods for quickly building your database - that won't break the law or ruin your reputation.

Email Marketing Regulations First, the law. According to a 2007 Nucleus Research report, email spam cost U.S. businesses $712 PER employee in lost productivity. That translates to $70 billion in wasted productivity last year!

The federal CAN-SPAM Act, which took effect in 2004, established requirements and restrictions for all commercial emails:

• Misleading Subject Lines Banned

  It's illegal to use a subject line that misleads the reader about the true content of the email message.

• False header information prohibited

  The routing information and sender email address must accurately identify the company or person sending the email.

• You cannot build your database illegally

  The federal law prohibits development of a commercial email database (1) by harvesting emails published on other websites, (2) use a "dictionary attack" that generates different email permutations for spamming, or (3) relay emails through a computer or network without the owner's permission.

• You MUST have an opt-out system

  Recipients must have an easy way to unsubscribe from future emails, either by email or a webpage that allows them to "opt out" of your database. You also cannot require people to pay a fee or provide additional information just to opt out.

  If you do receive an opt-out request, you must honor it within 10 business days - if not immediately.

• You must provide an address

  The sender must provide a valid physical mailing address, although it can be a P.O. box.

The Federal Trade Commission can assess a fine of up to $11,000 for commercial emailers who fail to follow CAN-SPAM regulations. Major spammers can receive more serious criminal penalties, including prison time.

Effective and Legal Methods
There's really no need to break the law when you consider that legal methods for mass email campaigns are readily available. They may cost more money up front, but they'll cost less and produce more over your entire campaign. And oh yes, they keep you out of prison.

The most common method is to rent a commercial opt-in list. These databases contain people who have agreed to receive specific email offers. The owners of these opt-in lists will normally handle the email delivery of your pre-approved message.

The biggest advantage of these opt-in lists is that you should be able to target your messages to people who are more likely to buy your health insurance.

You may also want to consider buying seasoned or "aged" leads. These leads are typically several weeks old, but they're genuine health insurance shoppers who asked to speak with an agent.

Many top producers actually buy these cheaper leads in bulk and then use a drip marketing system to revive them and turn them into live clients.

Deliverability Rates and Reputation
If the law and the availability of legitimate alternatives aren't enough to persuade you to avoid questionable mailing lists, then consider your deliverability rates and reputation.

The addresses on many of these "spammy" mailing lists are well known to spam blockers. Very few of the emails you send to these lists will actually get rejected or sent to a junk folder. And what doesn't get caught by spam filters will probably get reported as spam by anyone who bothers to open it.

At best, your efforts will be a short-term waste of time and money. Unfortunately, as email providers notice that you've sent a lot of spam, they'll soon put your IP address and even your DOMAIN name—not just your email—on a black list.

That will make it harder to send out commercial emails in the future—even if you finally come to your senses and decide to go legit.

After the damage has been done, you'll have to pay a lot more money and invest even more time to rebuild your email reputation. It's not worth it.

So if you're serious about building a long-term business and successful online marketing program, remember the old adage: "don't do the crime if you can't do the time!"