If you go around asking whether to buy a B2B contact database, chances are you’d soon end up being chastised for simply just thinking about it. This is a little unfortunate, since a bought list sometimes makes more business sense. In fact, there are specific cases where buying a list can potentially bring you better results than taking the organic route.
The main reason why a lot of marketers advise against buying B2B contact databases is that people tend to use purchased lists for spamming contacts. While this is a valid point, the truth is that it still boils down to how you use a bought list that determines whether you’re engaging in spammy activities. So with that aside, here are five situations where it’s really okay for you to buy a B2B contact list:
Case 1: Your solution solves a real pain point.
Early-stage investor and serial entrepreneur Jason Lemkin raises this very interesting idea. If you can solve a real pain point, outbound marketing will always work for you.
The same can be said about using a bought prospect list in your campaigns. When your solution fixes an urgent issue or fulfills a pressing need that your target buyers are experiencing right now, why wait for leads to naturally start trickling into your funnel? Why not reach out to them and deliver value right away?
Case 2: You’ve clearly identified your target prospects.
In an eye-opening post, creative strategist Jake Jorgovan shares the story behind his cold email campaign that landed him a consulting project with a bunch of new customers including some Fortune 500 clients.
Among the key points he mentions is that he was only able to build a cold email list after knowing exactly who the target audience was. So, instead of sending generic templates, he came up with relevant, compelling email messages that cold prospects were interested in.
Case 3: You’re targeting a high-turnover industry.
It’s no secret that marketing data has an expiration date. MarketingSherpa places the average rate of database decay at about 2.1% per month or around 22.5% each year. For some industries, this can reach as high as 6.1% every month.
So if you’re targeting decision-makers in an industry where people tend to change job titles or move to new locations relatively frequently, one way to keep up is through using bought contact databases from a reputable list vendor.
Case 4: You don’t have the resources to build a list at scale.
Aside from the time investment required to help your B2B list reach critical mass, organically growing your database also needs tons of effort and the right kind of expertise.
That’s why, if you’re unable to make all these necessary commitments, buying a contact list is a more viable option. What you’re paying for when you buy B2B contact database goes beyond list records. You’re putting resources where they’re needed the most.
Case 5: You’re expected to deliver results in the near-term.
Let’s say your revenue goal for this quarter is $300,000, the average deal size is $10,000, and your sales cycle is around two weeks. That means you need to close 30 deals. At a close rate of 5%, you need to generate at least 600 new leads by the first half of the quarter to reach your targets.
While we’ve played around with figures in our hypothetical scenario above, the main point is that hitting sales targets is still pretty much a numbers game. In most industries, B2B conversion rates (lead-to-opportunity and opportunity-to-close rates) simply aren’t in your favor, so you need to start out with a large number of relevant prospects to get any meaningful results further down the funnel.
If you find yourself in any of the above situations, then by all means start looking for a trusted list vendor right now. Don’t pay too much attention to people who think they know what’s good for your campaign. Instead, let your solution, audience, industry, capabilities, and objectives decide whether you should buy a B2B contact database.