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  • Bendtsen Teague posted an update 2 years, 2 months ago

    For those who run businesses that rely heavily on mailing lists, it may be beneficial to consider renting a mailing list. While most companies would not want to spend the money on such a service, there are some instances in which the cost is justified. For instance, if you have a massive list but only use a few mailing lists for various purposes, then it may be more cost effective to rent them than purchase them outright. This is especially true if your mailing list is not an ongoing one and is generally used only to receive new contacts or collect specific demographics.

    Other times, though, it may make sense to invest in mailing lists outright rather than simply rent them. For example, some businesses do tremendously well when they buy mailing lists that come directly from a provider and don’t require ongoing maintenance. Other businesses, however, don’t make as much money when they buy their own disposable income from third parties. In this case, the best option is to lease a mailing list.

    One option for a business looking to lease a mailing list is to contact either a larger commercial enterprise or a smaller local agency. Typically, marketing of organizations will rent out a list for a fraction of the cost of purchasing one, and they provide a more detailed income-expense form. The downside is that they may not offer as many options, and they may not have the same level of experience handling different issues and concerns.

    A third option that can be explored for the rental of its mailing list is to contact a CCRB, or certified resource coordinator. These individuals work with companies and individuals to create a customized income tax mailing list for a fee. They often maintain contact with companies that want to place their mailing list on the list and will also work with the companies to create a standard income tax mailing list. Because they have strong contacts in both the tax industry and the real estate industry, they often can help the company focus on the tax issues and avoid having to deal with issues concerning the real estate aspect.

    An additional option that a business may wish to consider for the rental of its mailing list is to go with a UBTI. A UBTI is an individual trader whose business is specifically set up to accommodate the mailing list requirements of another business. An example of this type of company could be a bank that leases banking lists to other financial institutions. The bank could rent a UBTI to a business that needs to have its mailing list maintained. While marketing are not directly related to each other, their interaction helps to illustrate the way that UBTIs function.

    A UBTI company typically provides a wide range of services for those businesses that want to rent mailing lists. Because it acts as a sort of clearing house between businesses and the actual owner of the mailing list, the UBTI also acts as an intermediary between the business owner and the person who may be interested in renting the mailing list. One type of service offered by many UBTIs is the preparation of an income-expense report, or I-E report. The income-expense report goes into the tax return of the business, showing the amount of the rental fee paid by the customer (such as a rental company) and any direct rental income received from the customer (such as a hotel or apartment complex). If a business has a separate UBTI account, the account may be opened by an employee (typically the receptionist) who will prepare the I-E report.

    marketing of the rental of its mailing lists is that some companies may not want all of their customers’ names on the lists. In marketing , the business owner contacts each potential customer directly and asks whether he or she wants to be included on the mailing list. In order to rent the mailing lists, the business owner must provide a unique address – which is part of the income-earning potential of the unrelated business taxable income. If the customer chooses to rent the mailing lists, the mailing list broker enters into an agreement with the landlord the amount of money the landlord will charge for the mailing list. The broker then pays a certain amount of money to the landlord, who then shares this payment with the related UBTI account of the landlord.

    There are many potential uses for the income-earning potential of a related trade term. Real estate brokers, real estate agents, mortgage brokers, and real estate related companies can take advantage of the increased revenues from a related trade term by using the names on the lists to attract potential customers. By paying a higher rent to use the lists, they may also be able to build larger relationships with potential clients and increase their own revenue. This is important for the lender because the lender needs to know the financial condition of the company making the loan. By having a larger client base, a lender knows that it can take more risks on lending money. This is part of the risk involved in commercial real estate loans.