Choosing the best list broker: 10 questions that will help you predict how well a broker will serve your magazine's bottom line - Lists

Folio: The Magazine for Magazine Management, March 1, 1993 by Paul Taybi

Choosing the right list broker can be complicated. There are more than 400 registered mailing list brokerage companies listed in the SRDS List Directory, plus thousands of advertising agencies and lettershops offering list brokerage services.

Unfortunately, many magazine publishers don't realize just how complicated it is to find the right broker. They base their decisions on the broker's size--the number of accounts a broker serves--or on a broker's general reputation. Certainly size and reputation are important, but they won't predict how well a broker will serve your magazine's long-range interests.

A more critical consideration is how a broker will contribute to your publication's profitability. It may seem like a lot to ask, but a mailing list broker can be expected to help your magazine maintain a healthy bottom line. At the very least, your broker should provide on-target list research and recommendations, and on-time delivery of labels and/or tapes to your mailing house. But there are other "behind-the-scenes" services a mailing list broker should provide to magazine publishers.

Narrowing the odds

To find the right broker for you, ask yourself these questions:

How well does the broker understand magazine publishing, or my specific readership? It makes no difference how many blue chip accounts your broker serves if he or she is unfamiliar with magazine publishing, or with your particular audience. To recommend profitable lists for your circulation promotions, the broker must have a very clear idea of your magazine's marketplace positioning and its current and potential readership. If you publish an office-products trade magazine, for example, look for a broker who sees beyond office-products lists to new developments in the office-product industry--and how those developments can be addressed by innovative new list strategies.

Is the broker experienced in my field? There are list brokers who specialize in, for example, such vertical markets as high-tech office products and consumer catalogs, as well as brokers who focus almost exclusively on subscription mailings. These firms are on top of relevant new rental lists, new rental policies of established lists, etc. So it pays to find a broker with a built-in affinity to your marketplace, or better yet, to subscription mailings in your marketplace.

However, just because a broker specializes in your niche, there is no guarantee the firm will serve your publication's best interests. In fact, such a firm may simply send you the same tired collection of list recommendations it always sends to mailers in your field. For this reason, you should investigate the broker's willingness to seek out new lists and new approaches to your promotional needs.

Can the broker consult with me on my circulation marketing plans? One sure way to make the most of a talented list broker is to get him or her involved in your firm's market-planning process. Because lists are such an important factor in the subscription promotion process, it's a mistake to plan your promotional campaigns without considering the availability--and flexibility--of key lists. Look for a broker who can help you build list considerations into your firm's ongoing strategic planning activities.

Should I use a broker who is currently serving my competition? This is a ticklish question. On one hand, a broker who works with your competition will have insights into that firm's mailing strategies and will know which lists work best. This knowledge could be reflected in his or her recommendations to you. On the other band, if the broker is recommending the same lists to you and your competitor, you may both deluge the same markets with similar promotions, thereby depressing response.

Most brokers have strict policies on client confidentiality, and would never divulge tim mailing strategies of one competing mailer to another. Still, you can be sure your trust is not violated by refusing to work with brokers who handle direct competitors. If you have no choice, consider dividing your business among several brokers.

How can I be sure that the broker is keeping my mailing practices confidential? You must be satisfied that the broker will protect your publication's proprietary information. Check into the firm's employee agreements. How much confidentiality does the firm require of its employees? Does the brokerage company require employees to sign non-compete agreements? Always ask probing questions about how a list broker intends to safeguard proprietary information about your promotional practices.

Has the broker spent time on the mailer side? If you can find a broker with experience as a direct marketer--particularly as a subscription marketer--give that broker extra consideration. Chances are that broker will be more sensitive to your concerns about matching lists to campaign goals, structuring tests and rollouts, and meeting deadlines and budgets.

Can the broker advise me on analytical or computer processing technology? Because replicating positive test results is the key to successful ongoing subscription promotions, find a broker who can counsel you on structuring your mailings for ease of back-end analysis and rollouts. Also look for guidance on merge/purge, list hygiene, house file development, security and postal regulations.