"Get $1 Million Worth Free
Publicity." "E-mail Your Way to Success." "Free Money!"
"One-Time $125 Investment -- with Guarantee!!" "Girl Fun!" "The
Ultimate Win/Win Situation." "Banking Secrets Revealed!"These messages
may come to your e-mail box soon, containing sales pitches on topics ranging from golf to
porn. Over the past year, direct marketing has hit on-line USENET newsgroups, private
e-mail boxes, e-mail discussion lists and Web sites.
The Internet community dubbed this practice as "spamming" after the popular
British television restaurant sketch where a character orders a luncheon meat called
"Spam" repeatedly, past the point of absurdity.
"Spammers flood the Internet with multiple copies of the same message in an
attempt to force it on people who would not choose to receive it. They discovered the Holy
Grail of direct marketing -- cheap, effective information distribution, which costs very
little to them, but people have to wade through it -- and it uses a lot of
bandwidth," says computer consultant Fred Elbel of Littleton, who developed a Web
page of information about the topic (www.csn.net/~felbel/jnkmail.html).
Although annoying, is marketing through e-mail worse than through the traditional
venues?
No, says Blaine Stuart, president of Broomfield-based Stuart International Trade (www.powerpromo.com/stuartrade), which provides
telemarketing sales services to businesses.
"If you don't want a message, it just takes a second to delete it. It doesn't cost
you anything; most Internet service providers offer a flat charge no matter how long
you're logged on. Sending e-mail pitches is great for direct marketers to get their
message in front of people who will read it."
Others agree. "Reaching consumers through e-mail is the key to success in doing
business over the Internet, if done right," says Scott Nuanes, president of Boulder's
BusinessLink (www.businesslink.net), which helps
companies develop and distribute direct marketing material. And companies like the idea.
"While at Comdex, we met with companies about it -- we were shocked that 95 percent
of them were interested."
As a representative for Email Pro software, which gathers e-mail addresses for direct
marketers, Stuart says e-mail marketing has big advantages. "Recipients wanting more
information hit reply' -- they get all the information they need about a product in a
return message. They don't have to use a phone or fax. It's a fully automated sales
machine." On a recent week's mailing of 10,000, Stuart made $3,200 in net profit and
$6,000 in sales and recorded a response rate of 1 to 5.
How do direct marketers get your e-mail address?
Jason Catlett, chief executive officer of Delaware-registered Junkbusters (www.junkbusters.com), whose mission is to free people from
junk communication, says direct marketers either buy from brokers selling e-mail addresses
or "there are dozens of software tools that automatically subscribe to as many e-mail
discussion lists as possible and harvest the lists of e-mail addresses."
For example, Email Pro, the software Stuart uses, is launched into e-mail listservs,
newsgroups and Web sites to "strip out all e-mail addresses. It sorts the addresses,
removes duplicates, puts them into a database for later mailing in one simple step,"
reads Email Pro's advertisement.
Stuart also uses Stealth Mailer, which sends out 250,000 messages per hour to the
collected addresses by "acting like 20 e-mail programs at once on separate
computers." He provides Stealth's Simple Mail Transfer Protocol, or SMPT (which is
used by all e-mail programs to send mail) with a list of 20 or more server identities,
such as your ISP's domain name, to make it look like it came from that location.
"E-mail programs also let you change the return address line, where you can put in
any address you want," Stuart explains. "It's not designed to hide your
identity, but you don't want to get returns to that address, either."
All that makes the e-mail difficult to trace, according to Shelli Meyers, president of
Boulder-based Indra's Net (www.indra.com). "It's like
this: Someone can use our mail server to pass mail through usa.net with free e-mail from
Juno. If they send 50,000 messages through our machine and we know about it, we can block
it, but this way, we can't. It can bring down an entire server."
BusinessLink was shut down for three days when a spammer used the company's SMPT
identity. "It's the equivalent of sending 40,000 pieces of mail to my house,"
Nuanes says.
Indra's Net has a disclaimer on their home page saying that anyone sending bulk mail
through their server with the intent of spamming is subject to $1 per e-mail message.
Indra's recently sent a bill for $59,000 to one such e-mailer, but hasn't heard back.
BusinessLink is pursuing their matter through legal counsel.
Stuart does not advocate spam. "Tools like Email Pro do have the potential for
being abused, but it's not the software, it's the ethics of the person using it."
BusinessLink's Nuanes maintains that it's only ethical to send e-mail to those who
request information, such as on a form on a Web site or from other standard marketing
practices that target specific groups. "We would never use fake e-mail addresses or
go around appropriate ways of doing business. Brokers selling e-mail addresses don't tell
buyers how to properly use them."
BusinessLink adds incentives for people to register at their Web site. "We give
away (in a drawing) a Pentium computer each month just to get people to sign up to be on
our e-mail list. You give us your permission to send e-mail to you. We won't sell or give
your name to anyone else," Nuanes says.
Many people advocate legislation to get rid of spammers, similar to the now illegal
practice of sending unsolicited faxes, according to Junkbuster's Catlett. CompuServe and
Concentric recently won injunctions prohibiting Cyber Promotions from sending unsolicited
e-mail to all addresses they maintain, and a Pennsylvania district judge allowed America
Online to automatically limit the domain names Cyber Promotions can use so they can block
the company's messages to their members unless the members specifically deactivate AOL's
blocking filters.
Nevada, California, Virginia and Connecticut state senates also have introduced
legislation that would make sending unsolicited ads to e-mail accounts a misdemeanor.
Shirley Sostre, an Internet attorney in
Boulder, believes "it's difficult to draft this type of legislation. Even though some
don't like it, e-mail marketing has its benefits. It's an inexpensive way for small
businesses to get their word out to a lot of people. Instead, I'd like to see courts apply
laws that already exist."
For instance, "Stealing identities and property are illegal -- it shouldn't matter
whether it's electronic or not. Some spammers use fraudulent methods that may violate the
Computer Fraud and Abuse Act and the Wire Fraud Act. Colorado also has their own computer
crime laws of deceptive trade practices."
Sostre contends, "The high-tech community will figure it out -- they always do.
They'll build technology to make it more difficult to hijack SMPTs or other identities. If
you put up those technological barriers, it helps dispose of those who don't have the
ethics or understanding of how e-mail should work."