List Broker

What is a list broker?

A list broker is someone who buys, markets and sells data in the form of a list to businesses and makes a small profit in doing so. Some list brokers specialise in business to business lists and some deal with business to consumer; other list brokers service both. The main function of a list broker, as part of the Direct Marketing Industry is to supply contact details of consumers and businesses within the UK or indeed internationally, depending on their market. The list broker provides the information that businesses need to target potential new customers.

The list broker rents (rather than sells outright) on a single or multiple use basis which means that ownership of the data stays with the original list owner. Effectively, a list broker acts as a buying agent between the list manager or list owner and the final end user of the list. A list broker is appointed by the end user to create a plan of suitable lists to rent on behalf of the end user and the list broker has to responsibly manage the delivery of the data to the bureau.

Multi-use is a way of buying data and reducing wastage on list costs, dependant on the number of times you wish to mail in and agreed time period. As any good list broker will inform you, the more times you mail the same list, the higher the cost will be as you are likely to be paying full rate per transaction unless a re-mail rate can be negotiated by your list broker.

When purchasing through a list broker, it is advisable to be upfront about the purpose of the intended campaign and the sample piece you will be using. You may want to send your sample to all the list brokers that are pitching. Get as much information from your list broker as possible with regards to how their source is compiled, how often it is updated, what selections are available, how often it is rented. Check with the list broker that the list is registered and ensure it adheres to the Data Protection Act.

List broker commissions are generally negotiated and agreed between the relevant parties in advance of the transaction and it is advisable to set out in writing in a contract of services between the list broker and end user exactly what the terms and conditions including fees will be. Many end users seek to obtain pricing advantages from the list broker for the use of lists, particularly if they are high volume and/or frequent use.

In any mailing plan where a list broker is providing several lists of a similar nature, there is a chance that there will be duplication between the lists. This chance increases with a greater number of lists and with greater volumes of data taken from each list. Other factors that the list broker has to consider might also increase the chance of duplication include similarity in collection methods, closeness of customer profiles between lists and the house file size. A list broker must help build in an estimation of the percentage level of duplication to determine the likely final net mailing volume for the campaign. A good list broker will help you build up an effective list of good prospects that match realistic criteria that is right for your particular campaign. An excellent list broker will be honest and transparent about every bit of information they gather for you and a brilliant list broker will do all of the above and magic amazing lists from companies you haven’t even heard of!

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Knowledge Base:

1. What is a prospect list? Prospect List

2. How can I create interest in my companies products by using direct mail? Direct Mail

3. What are mailing lists? Mailing Lists

4. What is the purpose of direct marketing? Direct Marketing

5. How do I obtain a good quality sales lead? Sales Lead

6. What are the main functions of a list broker? List Broker

7. How to succeed with database marketing? Database Marketing

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