What is a net name arrangement?
When you start to use lists in large quantities, (and are using a merge purge), you will notice the lists duplicate with each other more and more, and with the house file you’re building, resulting in lower “nets”, i.e. names you don’t already have on the other lists or on your house list. Your broker can usually start to negotiate net name payment arrangements when you take 50,000 or more on a list. Typically an 85% net is the starting point. You pay for at least 85% of the names, or what you mail; whichever is higher. You’ll pay base price and “run charges” on the unused names. Selections charges must always be paid on the total amount of names you receive.
A net name arrangement is an agreement between the mailer and the list manager to guarantee a certain percentage of names delivered will be billed. This comes in very helpful for example when purchasing multiple list from different companies that need to be merged together to remove any duplicates. The mailer agrees to pay for a certain percentage of names at full price and the names that are not used due to duplication are only paid for by a minimal run charge.
