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How to price/value an email list for sale

by jbrett
8 replies
Hey all, I had someone approach me about buying my list and essentially "cashing out" of that particular niche.

So my question is? How do you price/value a list?

I've been considering...

1. Open rates / click rates / unsubscribe rates of the last 5-10 emails sent

2. Number of buyers

3. Average value-per-lead and value-per-customer

4. How often the list gets mailed (emails per month)

5. How recently the list has been mailed

6. How much the list currently generates

7. How fast the list will depreciate in value if I DON'T sell it

FYI, there is NO transfer of credit card info OR any other property involved in this transaction, just email addresses.


I'd really prefer only those with actual experience (first or second-hand) doing this comment on this.

Finally, if I do this, what are some other things they might ask me about in a that are typically included in this contract?

For example rights to use my name/likeness, other things?
#email #list #price or value #sale
  • Profile picture of the author lotsofsnow
    Basically the list is worth what somebody is willing to pay.

    Ask for an offer and then you will have a first (lowball) idea on the value. Take that times 10 and you should land somewhere in the real range of value or market value.
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  • Profile picture of the author dougp
    Originally Posted by jbrett View Post

    Hey all, I had someone approach me about buying my list and essentially "cashing out" of that particular niche.

    So my question is? How do you price/value a list?

    I've been considering...

    1. Open rates / click rates / unsubscribe rates of the last 5-10 emails sent

    2. Number of buyers

    3. Average value-per-lead and value-per-customer

    4. How often the list gets mailed (emails per month)

    5. How recently the list has been mailed

    6. How much the list currently generates

    7. How fast the list will depreciate in value if I DON'T sell it

    FYI, there is NO transfer of credit card info OR any other property involved in this transaction, just email addresses.


    I'd really prefer only those with actual experience (first or second-hand) doing this comment on this.

    Finally, if I do this, what are some other things they might ask me about in a that are typically included in this contract?

    For example rights to use my name/likeness, other things?
    Did you have a privacy policy in which you can sell your subscriber's information? If not, then I would highly recommend against it. Anyhow, I personally wouldn't sell my list or less I'm getting at least 5X the value that I'm making from it yearly.
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    • Profile picture of the author Lucian Lada
      Originally Posted by dougp View Post

      Anyhow, I personally wouldn't sell my list or less I'm getting at least 5X the value that I'm making from it yearly.
      Who on Earth would buy a list and wait 5 years just to break even?
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      • Profile picture of the author Steve B
        JBrett,

        If I were the buyer, besides the things you've listed, I would want to know where and how you collected the emails in the first place.

        In addition, if you did not alert your subscribers to the fact that you may sell your list when you signed them up, as a buyer I would have cause to want to pay you much less for it. Why?

        Simply because as the new owner, I am going to have to get the list members to give me permission to contact them since that was not part of their "contract" with you. In doing so, I would expect to lose about 80% of the names on the list or more.

        If the new owner doesn't take steps to get specific permission from the subscribers to send them emails, anyone - at any time - could file a spam complaint and the new list owner would be guilty. The new owner could be in trouble with his hosting provider and get his site shut down. It happens.

        For this reason alone, I would be very hesitant to buy someone's list. Even though you give the new list owner your permission to use the list (via a sale), none of the subscribers have agreed to anything on your behalf.

        The best to you,

        Steve
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        • Profile picture of the author jbrett
          I appreciate everyone bringing legality issues to my attention.

          I'd be giving this guy permission to use my pen name for marketing for a certain period of time.

          But really, I'm looking for anything that might come close to an acceptable model for calculating the value of the list.

          I suppose we could say it's worth whatever I've made in the past year with it x2 or x3...

          Maybe the new owner thinks he has more resources at his disposal to cash in than I do.

          It's also men interested in dating... these men can get their problems handled or give up in a matter of months, so that can impact the value.

          Finally, the bottom line is that I'm not going to do anything with the list myself, so it's worth nothing to me if I don't sell it.

          I want top dollar, but I want to be aware of what's fair and what standard practices are... or at least the most important variables to consider.
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  • Profile picture of the author salegurus
    Did the people who opted-in to your list do so with the understanding that you may sell their information?
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  • Profile picture of the author hustlinsmoke
    Well I would be hard pressed to buy someones list.
    I would though if I thought about it probably pay about .30 cents a email for it.
    Why that amount because I can get excellent coreg leads for .32 cents and there fresh to me so I treat them as more valuable to ME. This is my thoughts so don't interject it with your thoughts Warriors.

    One thing I would not do is buy your list off of what you made in the last two years, three years or even five years. I do not think it is worth that much. Assuming you belong to this forum I would think your list is in the MMO niches and I have heard all kinds of things about the lifespan of an email. I do not listen to them completely but I know my list and I know its on a rotating basis, I lose some when I mail out and I gain some on promotions.

    So my answer would be .30 cents an email and that's only if not mailed a ton but mailed on a consistent basis and its a niche I have a need for.
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  • Profile picture of the author djneill
    If you sell the list the subscribers will think that this new guy emailing them is spam and depending on the auto responder this could cause some serious issues for the new guy and possibly you if he spills the beans.
    If you know how many clicks you can generate from the list, and it's in the same niche as the new guy I would charge him for a "solo ad". Most subscribers are on multiple list so you can charge the new guy .40 to .60 cents per click.
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