Permission Based Email Marketing

If your business is using an email marketing software or internet based email marketing campaign you need to be aware of the email marketing laws.

In 2003 a federal email marketing law was enacted to protect email users from unwanted spam. The federal email marketing law is called the CAN-SPAM Act and establishes the bounds of legitimate permission based email marketing. CAN-SPAM applies to all commercial email messages not just spam. CAN-SPAM is administered by the Federal Trade Commission and enforced by the US Department of Justice.

Why you might ask is permission based email marketing regulated by the federal government so much more stringently than direct postal mail?  Massive unsolicited emails can tie up resources, use storage space, slow down systems and crash equipment. The spammers did just that causing a consumer outcry for help.

The federal government responded with CAN-SPAM. At least 21 states and many other countries also have anti-spam or email marketing laws governing email advertising.

Before you begin your email marketing campaign it is best to check with an attorney familiar with email marketing laws to make sure you are aware of any laws that may apply to your permission based email marketing campaign.

The Federal Trade Commission (FTC) has a great website for businesses using permission based email marketing. This government site can be found at http://www.ftc.gov/bcp/edu/pubs/business/ecommerce/bus61.shtm

The FTC website provides a guide for businesses using permission based email marketing which provides easy to read information about the requirements of the CAN-SPAM Act, what you have to do to comply with the email marketing laws and the penalties for violating the law.

The penalties are tough including a fine of up to $16,000 per violation (each non compliant email is considered a violation) of the Act. The Act also provides criminal penalties for certain acts including using false information or accessing computers or email addresses without permission.

Please be aware CAN-SPAM does not just apply to bulk email it covers all commercial messages the primary purpose of which is commercial advertisement or promotion of a commercial product or service. The law includes business-to-business email.

The email marketing laws requirements are not tough to follow you just have to be aware of them and comply.

The major requirements of CAN-SPAM as listed on the FTC website are:

• Don’t use false or misleading header information.
• Use accurate subject lines so recipients can tell from the subject line what type of information the email contains.
• Identify the message as an advertisement or promotion.
• Provide in the email your physical location by including a postal address.
• Provide an opt out link allowing recipients to opt-out of receiving future emails from you.
• Honor all opt-out requests promptly

As the business owner are responsible for CAN-SPAM violations even if someone you have hired to handle your permission based email marketing campaign has committed the violation. Ignorance is no excuse; so monitor carefully what those you have hired are doing on your behalf you are ultimately legally responsible.

Small Business Email Marketing

Small business marketing campaigns were traditionally at a disadvantage competing with big business campaigns.  The costs of developing small business marketing materials, printing the materials and paying for the postage for direct mail or the advertisements in newspapers and magazines created budget challenges that were not insignificant for small businesses. Software designed for small business email marketing campaigns has leveled the playing field by providing small businesses with an inexpensive small business marketing solution.

To establish a successful small business email marketing program you need a subscribers list of email addresses. If you have a list of current customer’s email addresses send them an email asking if they would like to receive upcoming emails with promotional materials about new products, sales and other helpful information.

Start collecting email addresses by offering customers the opportunity to sign up for emails when they check-out of your retail locations. Trade shows and exhibits are a great opportunity to grow your subscriber lists. Provide information on all your printed correspondence, sales receipts and invoices telling customs how to sign up for future email information.

Include a sign up box on your business web page. Make sure the form is simple to complete and obvious on the page so customers can’t miss the opportunity to sign up. Offer incentives to those who sign up like special deals or promotions.

Once you have an initial list of subscribers and begin your business email marketing campaign include a forward a friend link on your marketing emails so existing subscribers can help you grow your list.

Don’t wait until you have 1000’s of subscribers to start your small business email marketing campaign. A well done email marketing campaign will help you grow your subscriber list. Start your small business email marketing campaign now.

Email business marketing programs do have legal and business risks and responsibilities you need to be aware of.

The CAN-SPAM Act of 2003 establishes the bounds of legitimate email marketing (business email marketing), and provides sanctions for those violating the terms of the Act. The Federal Trade Commission enforces the CAN-SPAM Act and the Department of Justice prosecutes violators. There are five major provisions you need to be aware of:

• Do not alter the email header which contains routing information like the IP address from which the email was sent and the server which relayed your email.
• Use relevant and accurate subject lines in your business marketing emails.
• Every business marketing email must contain an unsubscribe or opt-out link.
• Every business marketing email must be labeled as such.
• Every business marketing email must include the originators valid physical address.

From a business point of view you want to keep your small business marketing materials useful, fresh and interesting. You want to carefully consider when and how many emails to send to your list. You don’t want to burn out your subscribers and have them opt-out of your small business marketing campaign or list your emails as spam permanently banning your emails from their email in-boxes.

Selecting the Right Email Marketing Solution

Selecting the right email marketing solution depends on your marketing goals and objectives. If you are going to target a small list of subscribers and send something out once or twice a year then you may want to consider a hosted email marketing service. If you are planning on an ongoing campaign to a large list or multiple lists of subscribers then you may want to look at an email marketing software package that you can self-host.

Let’s compare the advantages and disadvantages of an email marketing service versus an email marketing software package.

• If you use a host service you will pay a fee every month whether you send an email or not and the fee will increase as your list of subscribers grows or if you establish a second or third list. If you purchase email marketing software you will pay a software vendor once and there will be no additional monthly costs or additional costs if you email list grows or you establish additional lists.
• If you use a hosted service it is difficult to export your email marketing contact lists and statistics to a new server whereas if you are using your own email marketing software you can easily move all of your email marketing information to a new server.
• If you are using a hosting service you cannot modify the source code to add your own custom features. If you are using email marketing software you can modify the code to build custom features or incorporate your own add-ons.

The advantage to using a hosted package is you don’t have to install any software or worry about backing up your data or installing up grades or performing maintenance the host service does that for you in exchange for the monthly fee. The monthly fee often runs around $20 a month for small email marketers (500 or less subscribers and one list). However if you have a larger list of subscribers the fees ramp up quickly and if you have two or three lists your monthly fee may double or triple.

If you purchase an email marketing software package there will be a larger up front expense. Depending on the package you may pay nothing to $500 to purchase the software. This is a one-time cost and most of the commercial packages will typically support up to five separate lists. And there are no additional costs for larger lists.

So before you sign up for an email marketing host service evaluate the costs and benefits of purchasing an email marketing software package to run on your own server. If your email marketing campaign is small and you intend to keep it small in the future a host service may be right for you. If you plan to use email marketing for multiple lists and grow those lists over time and if you want to have the flexibility to customize your email marketing approach then a dedicated self-hosted email marketing software package may be a better choice.

Learn more about email marketing software.