Bulk Email Practices...
What You Need to Know!

Different Types of Bulk Email

When the subject of bulk email is typically mentioned to an experienced internet user, two things come to mind immediately -- SPAM and ILLEGAL.  In many cases, these negative connotations are not true at all.  There are two forms of bulk email... solicited or unsolicited mail.  When you hear the term SPAM or ILLEGAL in reference to bulk email, in most cases, this is referring to unsolicited mail. 

SPAM is typically an advertisement from someone who you have never had initial contact with.  The name most likely comes from a Monty Python skit featuring a group of Vikings in a restaurant who repeatedly sing an annoying song consisting mostly of the word "spam." By the end of the skit the spam song, which started out as background noise, becomes so loud that it completely drowns out the other participants.  Companies that practice spam use several techniques for gathering your email address without your permission.

Some of these techniques may include:

• Getting your email address off any personal or corporate web pages
• Crawling through Newsgroup posting or chat rooms where you may have left messages with your email address on them
• Attacking email servers from ISP's and gathering all email addresses that exist on their computers
• Scanning internet traffic where information like your email address can temporarily be floating about the world wide web.
• Randomly testing combinations of email addresses until a valid email address is discovered (i.e. johndoe1@aol.com, johndoe2@aol.com, johndoe3@aol.com, etc.)
• Purchasing email lists from other businesses who sell your personal information

These companies who practice in gathering email addresses usually sell these lists to businesses who want to perform bulk email marketing.  In reality, this controversial practice is no more devious than what the direct mail industry or telemarketing industry has done for many years.  Without your knowledge, mailing list / telemarketing companies have been building databases of your name, address, interests, etc. and selling them to businesses for a hefty price.  The data gathering technique is a bit different in that mailing list / telemarketing companies get your personal information from public records, credit bureau's, and even other businesses who sell your personal information to them.

Safe Bulk Email Marketing that Works

If you are one of those companies that are afraid to do bulk email marketing from your own personal customer list, then you are losing out on one of the most powerful new marketing tools in the 21st century. Using your own customer list is not considered spam unless your customer has explicitly told you not to send solicited information.  Also, many businesses are now starting to create Opt-in email lists on their corporate web sites for building onto their own email list database.  This opt-in email technique entices customers to give their email address to your company in return for periodic information you provide (new products, informative newsletter, special offers, etc.) via email.   The end result is a powerful marketing tool that is free to use and typically yields excellent results when compared to the high-expense involved with direct mail or telemarketing.  At the very minimum, every business should be taking advantage of this form of bulk email marketing.

Controversial Unsolicited Bulk Email Marketing

When it comes to unsolicited mail (spam), there are two schools of thought.  There are those businesses who swear by its success, and those who claim you will have legal issues or a customer service nightmare on your hands.  In general, the rationale for unsolicited bulk email is that if this form of free advertising  yields any significant sales, then it is a viable marketing tool.  But what about the possible backlash from angry individuals who receive spam or the possible legal matters involved with unwelcome email?

It's ironic, but email ads are really no different than telephone sales calls, junk mail or radio ads. You just hang up the phone, throw away a post card, turn off the radio, or hit the delete key if you're not interested. Yet, email advertising has had more federal and state proposed legislation to ban or control it than all other advertising methods combined.  So, why do some people get so irate about bulk email?

Many of these cyberspace junkies fervently wish they could bar spamming, or at least create a digital shield that would spare them daily exposure to its excesses. Lawmakers at both federal and state levels are responding vigorously to such hopes and wishes from their Internet-savvy constituents.  But such responses encounter three serious barriers which have internet-savvy individuals in mayhem.  First, there is a remarkable ease with which even a one-person spam operator can reach an audience of millions. Second, such activity has proved highly profitable, spawning a whole new digital cottage industry matching the direct-mail industry of the print world. Third, and most important, is a fact the regulators and the courts seem largely to have overlooked — that the material they seek to ban or channel is presumptively protected commercial speech.

Ultimately, your success (or horror stories) with unsolicited mail will undoubtedly be revolved around the product or services that you plan on offering.  If your goal is to offer legitimate products (i.e. Brand Name Electronics, Kitchen Appliances, Furniture, Computers, Pharmaceuticals, etc.) or services (i.e. Insurance,  Stocks, Banking, etc.), you will find some fair amount of success with this form of unsolicited bulk email marketing.  However, if you plan on producing spam for products or services that are illegal, dangerous, over-priced, or defective, then expect to have more than your share of legal problems.  The same goes for any email that directs customers toward get-rich quick schemes, fake online auctions, and any other money related scams.

This brings us to the final question, "Is unsolicited bulk email illegal?"

Unsolicited Bulk Email and The Law

If you plan on engaging in unsolicited bulk email marketing, you should be aware that some laws do exist now with regards to this type of marketing practice.  In general, spam is not illegal (not at the time of this writing anyway).  However, each year, many attempts to enact federal spam laws are reviewed.  Currently, all federal laws on spam are being rejected because of  first amendment constitutional rights. 

It is at the state level, where much of the legal issues have cropped up regarding unwelcome email.  For the most part, several or more states have enacted their own state statutes that are designed to protect individuals from false and  misleading email ads, as well as anyone who spams sexually explicit material.  Some states have passed laws requiring full disclosure of your company name as well as procedures for allowing the recipient to remove themselves from your mailing list.

The following are a few links to current spam laws and pending statutes at the state and federal level.  It is your responsibility to familiarize yourself with the different laws that currently exist regarding unsolicitated mail.  You must decide whether it is worth dealing with the possibility of legal issues if you spam recipients in any state that contains spam laws.  Realistically, the chances of any state prosecuting an individual for violation of spam laws is unlikely.  But, you should still be aware of these laws and their consequences.

Spam Laws Website
JMLS Website
California Assembly Bill 1629 (1998)  [enacted 9/26/98]
California Assembly Bill 1676 (1998)  [enacted 9/26/98]
Illinois House Bill 2616 (1999)
Colorado House Bill 1284 (1997)
Maryland House Bill 140/Senate Bill 222 (1998)  [enacted 4/13/98]
Nevada Senate Bill 13 (1997)  [enacted 7/8/97]

 

How To Avoid the Risks Involved with Spam

Different from other software vendors who primarily sell a bulk email marketing tool and promote the use of unsolicited email, Intellisoft's objective in creating Email Pro™ was not to promote spam operators to send unwelcome email to recipients.  Our company personally does not agree with the use of spam for marketing products or services.  However, we will also not deny that profit can be made from the practice of spamming, depending on what you are trying to sell.  If you ultimately believe that unsolicited bulk email marketing will work for your business strategy, then please place close attention to the following  potential risks involved with spamming and how to avoid them.

1. The ISP that  grants you access to the internet can meter your account and determine if you are sending an excessive amount of monthly email from your login account.  The ISP does have the legal right to disconnect internet service for almost any reason they want (especially if a few dozen individuals complain about your spam mail).  Do yourself a favor and never use the same ISP that hosts your corporate web site, for performing bulk email as well.  You can lose more than just your connection to the internet.

2. If your company has been in business for some years and has an excellent reputation nationally, you may want to consider creating a separate corporation for promoting your products or services.  This can avoid any backlash that might occur from the few crazed internet savvy individuals who would love nothing more than to "burn your company to the ground".  Many large corporations will not admit they dabble in spam, but often hide this dirty practices through smaller corporations and other unknown business affiliates.

3. If you plan on purchasing email lists from unknown sources, be careful not to overpay for that list.  It pays to do a bit of math, in order to be certain that your email campaign will be profitable.  This is because the statistics for spam sales are often quite low (often less than .05%).  There is also a strong probability that over 30% of email lists purchased will be invalid.  Therefore, use a formula like the following:
Sales Potential=([No. of emails purchased] * .70) * .0005
Actual Profit=(Sales Potential * Profit Margin) - (Dollar amount of purchased list)

If you plan on selling any items with very little profit margins, then unsolicited bulk email may not work at all unless you have access to free email lists.

4.  As the percentages show above in point #3, you will need to send out at least 100,000 emails in order to see any benefit at all.  Anything less, and you will probably have a higher ratio of complaint letters than you do sales.

Well, now that you know the strategies, the rest is up to you.  Keep in mind, the window for using unsolicited bulk email marketing is probably small.  Lobbyists are doing everything possible to crush this advertising technique before it ruins internet mail.  We can't say we blame them.