Wednesday, July 9, 2014

Mailing List Service

Although we all deplore the amount of “junk mail” that is dumped in our mailboxes each day, the amazing growth of direct mail is going to continue. Th e opportunity to succeed in running a mailing list service for the companies sending those materials is tremendous. Start-up costs are low, skills needed are easy to acquire, and money is there to be made. Your service can include list maintenance, mailings, creation of lists, list brokering, and even teaching others about mailing lists. Staying on top of the changing regulations of the U.S. Postal Service is perhaps the most challenging part of the job. However, software, pamphlets, and seminars abound to bring you up to speed.


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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