You’re trading lists with other Fundraisers. But should you be renting too?
In the List Business, we’re seeing Fundraisers trade lists more and more but this can be problematic. Imagine going fishing in the same spot as all of your friends. After a while you realize the fish aren’t biting due to all the clamour from so many boats. Not that Donors are like fish, but you catch the drift. Let’s look at an example. If a list consists of 20,000 names and in one month the entire list is used by eight different Fundraisers, we know what that means – prospects are going to feel swarmed. There are more rental lists than trade lists on the market; including lists sourced from subscriptions, catalogues, websites, memberships, etc.
“If you look at list plans comparing rentals to trades, you’ll see the number of trade lists is very high. This is obviously cost efficient in the short term, but how far are you really getting in the long run?” says Michelle Hamilton, Cornerstone List Broker. “We believe it’s better to sacrifice some short-term response rates but renting very good non-donor lists in order to secure new donors who no one else has.”
Other issues Fundraisers are running into:
- The “Block Out Period”
This occurs when an organization places a block on trading their lists with other organizations to either stagger usage or prevent other organizations from mailing to their donors during their own planned mailings. This period will prevent you from accessing their names. But what if you need these names for your campaign?
- Skewed Trade Balances
If a large volume Fundraiser who mails six times a year regularly trades with a small volume organization who only mails once a year, the result may be a trade balance that is consistently skewed. If the trade balance gets too high in one party’s favor, future trade requests may be declined.
- Small Charity Syndrome
Some small local charities have challenges with starting trade relationships with larger charities given their small list size and geographic target.
When you are setting campaign budgets, give your List Broker a call to discuss the possibility of integrating rentals into your list plan. To ensure that new prospects are being reached it is recommended that tests, both trades and rentals are incorporated into every campaign alongside top performing trade continuations.