What are the risks and downsides of cold emailing a purchased list?

Summary

Cold emailing purchased lists is a high-risk strategy with multiple downsides. It violates ESP terms of service, potentially leading to account suspension. Domain and IP reputation can be severely damaged, resulting in deliverability issues, including emails landing in spam folders or being blocked entirely. This practice often violates anti-spam laws like GDPR and CAN-SPAM, resulting in legal repercussions. Purchased lists lead to low engagement, high bounce rates, and increased spam complaints. Economically, the cost of building and deploying these campaigns often exceeds the return on investment, making it an inefficient use of resources. Ultimately, cold emailing to purchased lists is considered spam, regardless of technical compliance, and carries significant risks to sender reputation and business credibility.

Key findings

  • ESP TOS Violation: Major ESPs prohibit sending to purchased lists, risking account suspension.
  • Reputation Damage: Domain and IP reputation is harmed, causing deliverability issues.
  • Legal Non-Compliance: Anti-spam laws (GDPR, CAN-SPAM) are violated due to lack of consent.
  • Low Engagement: Purchased lists lead to low engagement, high bounce rates, and spam complaints.
  • Economic Inefficiency: Campaign costs often exceed returns, making it an inefficient strategy.

Key considerations

  • ESP Compliance: Always adhere to ESPs' terms of service regarding list acquisition and usage.
  • Reputation Monitoring: Continuously monitor domain and IP reputation to address deliverability issues.
  • Legal Due Diligence: Ensure compliance with all applicable anti-spam laws and regulations.
  • Opt-In Strategies: Focus on building opt-in email lists to ensure genuine engagement.
  • ROI Analysis: Thoroughly evaluate costs and potential returns before launching any email campaign.

What email marketers say
10Marketer opinions

Cold emailing purchased lists carries significant risks. These include damaging sender reputation and deliverability due to low engagement, high bounce rates, and spam complaints. Furthermore, it can lead to legal repercussions for violating anti-spam laws such as GDPR and CAN-SPAM, and negatively impact brand reputation. Purchased lists often contain outdated information and lack explicit consent, making compliance with these laws difficult. Using a separate domain for cold emails might help protect the primary domain's reputation but is not a complete solution. Ultimately, cold emailing purchased lists is a generally ineffective and potentially harmful practice.

Key opinions

  • Deliverability Issues: Low engagement, high bounce rates, and spam complaints negatively impact sender reputation and deliverability.
  • Legal Violations: Using purchased lists can violate anti-spam laws like GDPR and CAN-SPAM.
  • Reputation Damage: Cold emailing can damage brand reputation if recipients perceive the emails as intrusive.
  • Inefficient Use of Resources: Cold emailing purchased lists wastes time and resources due to low conversion rates.
  • Compliance Issues: Complying with opt-out requests and consent requirements is difficult with purchased lists.

Key considerations

  • Sender Reputation: Continuously monitor sender reputation to avoid deliverability issues.
  • Legal Compliance: Ensure adherence to anti-spam laws and consent requirements.
  • Brand Impact: Consider the potential negative impact on brand perception and customer trust.
  • Alternative Strategies: Explore alternative marketing strategies that focus on building genuine engagement.
  • Domain Protection: Using a separate domain for cold emails is recommended to protect your primary domain.
Marketer view

Email marketer from Sendinblue explains that sending cold emails to purchased lists often leads to low engagement, high bounce rates, and spam complaints. These factors negatively impact sender reputation and deliverability, causing emails to land in spam folders rather than inboxes. URL: https://www.sendinblue.com/blog/cold-emailing-vs-spam/

April 2023 - Sendinblue
Marketer view

Email marketer from Constant Contact shares that using purchased lists can violate anti-spam laws like GDPR and CAN-SPAM, resulting in hefty fines and legal repercussions. These laws require explicit consent before sending emails. URL: https://blogs.constantcontact.com/what-is-cold-emailing/

November 2023 - Constant Contact
Marketer view

Email marketer from Neil Patel explains that the CAN-SPAM Act requires that recipients have a clear way to opt-out of receiving emails, and that senders honor those requests promptly. If you're cold emailing you have to comply with this act and this often isn't possible when purchasing lists. URL: https://neilpatel.com/blog/cold-emailing/

October 2021 - Neil Patel
Marketer view

Email marketer from Klenty explains that cold emailing can damage brand reputation if recipients perceive the emails as intrusive or spammy. This can lead to negative feedback, loss of customer trust, and long-term harm to the brand image. URL: https://www.klenty.com/blog/cold-emailing/

August 2021 - Klenty
Marketer view

Email marketer from Hunter.io explains that you need to protect your domain reputation at all costs, and cold emails put this in danger. Because your audience isn't warm you're more likely to get marked as spam, which overtime, damages your domain. URL: https://hunter.io/blog/cold-email-outreach

January 2025 - Hunter.io
Marketer view

Email marketer from HubSpot explains that GDPR requires that recipients have given explicit consent to receive emails, and that senders keep a record of that consent. If you're cold emailing to EU citizens, you aren't compliant with GDPR. URL: https://blog.hubspot.com/marketing/gdpr-email-marketing

May 2021 - HubSpot
Marketer view

Email marketer from Reddit shares that purchased lists often contain outdated or inaccurate email addresses, resulting in high bounce rates and low engagement. Recipients who didn't opt-in are less likely to engage with the content, leading to poor campaign performance. URL: https://www.reddit.com/r/emailmarketing/comments/xyz123/is_cold_emailing_worth_it/

May 2024 - Reddit
Marketer view

Email marketer from Woodpecker.co explains that when you start sending cold emails, it's more likely they'll end up in spam, which is bad for deliverability. To improve this, use a separate domain. URL: https://woodpecker.co/blog/how-to-send-cold-emails-that-dont-end-up-in-spam/

April 2024 - Woodpecker.co
Marketer view

Email marketer from Email Marketing Forum responds that cold emailing purchased lists wastes time and resources because of the low conversion rates and high bounce rates. The effort spent on crafting and sending emails to uninterested recipients could be better used on other marketing activities. URL: https://www.emailmarketingforum.com/threads/purchased-email-lists-worth-it.12345/

December 2024 - Email Marketing Forum
Marketer view

Email marketer from Reddit answers that low engagement from cold emails results in poor deliverability, damaging sender reputation. ISPs use engagement metrics to determine whether to deliver emails to the inbox or spam folder. Low engagement can signal that the emails are unwanted, reducing deliverability over time. URL: https://www.reddit.com/r/marketing/comments/abc456/cold_emailing_best_practices/

March 2023 - Reddit

What the experts say
7Expert opinions

Cold emailing purchased lists carries several risks and downsides. ESPs often prohibit sending to purchased lists, and doing so can lead to account termination. Domain reputation is negatively impacted, potentially causing even legitimate emails to land in spam folders. These practices violate anti-spam laws like CAN-SPAM, CASL, and GDPR, as purchased lists lack the necessary consent. Cold emailing can be considered spam, regardless of technical compliance. Finally, there's the economic risk: the costs of building and deploying cold email campaigns can exceed the return on investment.

Key opinions

  • ESP Policy Violation: Sending to purchased lists violates ESP terms and can result in account termination.
  • Domain Reputation Damage: Cold emailing can negatively impact domain reputation, affecting deliverability.
  • Legal Risks: Purchased lists violate anti-spam laws due to lack of consent.
  • Deliverability Penalties: ISPs may block or filter emails from senders using purchased lists.
  • Economic Inefficiency: The costs of cold emailing may exceed the return on investment.

Key considerations

  • ESP Compliance: Understand and adhere to ESP policies regarding list acquisition and usage.
  • Reputation Monitoring: Monitor domain and IP reputation to detect and address deliverability issues.
  • Legal Review: Consult legal counsel to ensure compliance with anti-spam laws.
  • Alternative Strategies: Explore alternative marketing strategies that focus on building opt-in lists.
  • ROI Analysis: Carefully evaluate the costs and potential returns of cold email campaigns.
Expert view

Expert from Word to the Wise answers that sending email to purchased lists violates anti-spam laws around the world, notably the US CAN-SPAM Act, the Canadian anti-spam law (CASL), and Europe's GDPR. Consent needs to be freely given, specific, informed and unambiguous, which a purchased list is the opposite of. URL: https://wordtothewise.com/2015/05/purchased-lists-and-esps/

July 2024 - Word to the Wise
Expert view

Expert from Word to the Wise explains that using purchased lists and engaging in cold emailing can result in deliverability penalties. ISPs and mailbox providers may block or filter emails from senders who use these practices, leading to messages landing in the spam folder or being blocked entirely. URL: https://wordtothewise.com/2017/04/deliverability-penalties-cold-email/

December 2023 - Word to the Wise
Expert view

Expert from Spam Resource explains that cold emailing is spam, even if it technically meets the legal requirements of not being spam. People didn't ask to be contacted and have not formed any relationship with your business. The likelihood is, your email is spam. URL: https://www.spamresource.com/2010/01/is-cold-email-spam/

June 2023 - Spam Resource
Expert view

Expert from Email Geeks explains that with the primacy of domain reputation, senders often find that their opt-in marketing and business mail experiences delivery problems (all our invoices are going to the spam folder on gmail, for instance) if their sales team are aggressive enough to block mail.

June 2021 - Email Geeks
Expert view

Expert from Email Geeks shares a post (<https://wordtothewise.com/2015/05/purchased-lists-and-esps/>) which contains ESPs that publish that sending to a purchased list is a violation of their AUP and they will kick you off if they catch you.

January 2023 - Email Geeks
Expert view

Expert from Email Geeks shares to capture enough data to be able to prove why cold emailing was a failure, economically, by showing them how the cost to build and deploy the emails exceeded the return on investment.

May 2022 - Email Geeks
Expert view

Expert from Email Geeks shares a B2B whitepaper for Sparkpost’s send-it-school (<https://www.sparkpost.com/send-it-school/overcoming-challenges-b2b-email-deliverability/>) that briefly touched on how purchased lists / cold email could harm delivery.

December 2023 - Email Geeks

What the documentation says
4Technical articles

Cold emailing purchased lists poses significant risks to email deliverability and compliance. Major email service providers like Mailchimp prohibit the practice, potentially leading to account suspension. Microsoft Outlook's anti-spam filters flag these emails as junk, causing deliverability issues. Spamhaus adds offending IP addresses and domains to blocklists, severely impacting email delivery across ISPs. Amazon SES enforces strict bounce and complaint rate policies, with high rates resulting in account suspension. These factors collectively undermine email marketing efforts and can damage sender reputation.

Key findings

  • TOS Violation: Using purchased lists violates Mailchimp's Terms of Service, risking account suspension.
  • Spam Filters: Outlook's anti-spam filters identify emails sent to purchased lists as junk.
  • Blocklisting: Sending unsolicited emails can lead to IP addresses and domains being added to Spamhaus blocklists.
  • Account Suspension: High bounce and complaint rates in Amazon SES can result in account suspension.

Key considerations

  • Compliance with ESPs: Adhere to the Terms of Service of email service providers to avoid account suspension.
  • IP Reputation: Monitor IP address and domain reputation to ensure deliverability.
  • Email Authentication: Implement email authentication protocols to improve deliverability.
  • List Hygiene: Avoid using purchased lists and focus on building opt-in lists.
  • Bounce and Complaint Monitoring: Monitor bounce and complaint rates and promptly address any issues.
Technical article

Documentation from Mailchimp states that using purchased lists violates their Terms of Service. Mailchimp requires users to obtain explicit consent from subscribers, and sending to purchased lists can result in account suspension or termination. URL: https://mailchimp.com/help/about-our-compliance-program/

April 2024 - Mailchimp
Technical article

Documentation from Amazon SES explains that high bounce and complaint rates damage sender reputation and impact deliverability. Amazon SES has strict policies regarding bounce and complaint rates, and exceeding these thresholds can lead to account suspension. URL: https://docs.aws.amazon.com/ses/latest/dg/monitor-sending-activity.html

October 2024 - Amazon SES
Technical article

Documentation from Spamhaus explains that sending unsolicited emails to purchased lists can lead to IP addresses and domains being added to their blocklists. Being listed on Spamhaus can severely impact email deliverability across various ISPs and email providers. URL: https://www.spamhaus.org/faq/section/Blocklist%20Removal

June 2024 - Spamhaus
Technical article

Documentation from Microsoft explains that Outlook's anti-spam filters often identify emails sent to purchased lists as junk. Senders using Microsoft Exchange Online Protection (EOP) or Office 365 Advanced Threat Protection (ATP) risk being flagged, leading to deliverability problems. URL: https://learn.microsoft.com/en-us/microsoft-365/security/office-365-security/anti-spam-protection

June 2022 - Microsoft