You will spend from $5,000 to $9,000 on the equipment and supplies needed for this business. Depending on your specialty, you may be able to begin for less, especially if you lease a postage meter machine and some of the other equipment. Charges will vary for your services, but you’ll need to set two rates from the get-go: a per-entry fee (usually 15 to 25 cents per name and address) and an annual list maintenance fee of $1 per entry.
Mailing list businesses are relatively easy to start and to promote. You can have as large a customer base as you wish, rather than relying on just a few key clients. The actual work of creating and maintaining the lists is routine, although it does require attention to detail and great accuracy. A thorough understanding of postal regulations is vitally important, and the regulations are constantly changing.
Approx. cost of start-up: $5,000 to $9,000
Approx. potential earnings: $40,000 to $100,000
Typical fees: 15 to 25 cents per entry (name, address, city, state, zip); about $1 per entry per year to maintain the list. Mailing 10,000 pieces of mail could cost your client $800 to $1,200
Where to promote: Contacting local stores, associations, churches, clubs, etc. to offer to maintain their lists for them; networking in business organizations; Yellow Pages; direct mail; banner ads on entrepreneurial Web sites; your own Web site with testimonials and e-commerce capability (so that customers can purchase and download lists)
Qualifications: Detailed knowledge of postal regulations for bulk mailings, computer expertise, fast and accurate typing skills, ability to meet deadlines
Things needed: Computer, printer, specialized software, database, post office permits, office furniture, business cards, letterhead, postage machine
Required staff: None
Hidden costs: A backup for your computer system in the event of a disaster
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