What is 'Permission Marketing'?

Permission marketing refers to a form advertising where the intended audience is given the choice of receiving promotional messages. The concept of permission marketing has been popularized by Seth Godin, an entrepreneur and author, in his book published in 1999, "Permission Marketing: Turning Strangers Into Friends, And Friends Into Customers." Permission marketing is characterized as anticipated, personal and relevant. It is often positioned as the opposite of direct marketing where promotional material is traditionally sent to a wide customer population without their consent.

BREAKING DOWN 'Permission Marketing'

Permission marketing has increased in popularity, particularly with respect to digital marketing. Subscription email updates are a good example of permission marketing. Users opt in to receive periodic emails with updates and offers based on the interests they expressed when they registered on a website or other consumer touch point. Subscribing, in this case, is the act of giving permission.  

Benefits of Permission Marketing

Permission marketing is a low-cost and effective way to create a relationship with a potential customer. The use of digital platforms with direct access to consumers, such as email or social media, removes many of the overhead costs that traditional channels such as mass mailing and print ads must assume. More importantly, the opt-in from the potential customer makes it more likely that they will read the content and absorb the marketing messages.

Permission Marketing Versus Traditional Direct Marketing

Direct marketing in the traditional sense is often blind marketing - little is known about the target audience other than the postal code. For example, a real estate agent might send a postcard with their details to every home that has a particular ZIP code in a certain area.

A permission marketing approach would involve a real estate agent using a blog to share content about home prices, mortgage rates and tips on selling a home specific to that same area. The blog might show a link to an email newsletter opt-in that prompts the user to answer basic questions that help the real estate agent determine what services they might need. For example, "When did you purchase your current home?” or “Do you intend to buy a home in the next year?” This information can be used to segment emails into different lists and further personalize the content. This type of communication builds a relationship with subscribers. When the time comes for them to sell or buy property, they will be likely to contact the real estate agent who is already communicating with them and with whom they have a relationship.

 
RELATED TERMS
  1. Permissible Non-Bank Activities

    Financial business that can be conducted by bank holding companies ...
  2. Direct Marketing

    A form of advertising in which physical marketing materials are ...
  3. Real Estate Agent

    A real estate agent is a licensed professional who represents ...
  4. Social Media Marketing (SMM)

    Social media marketing (SMM) is the use of social media websites ...
  5. Native Advertising

    Native advertising is promotional messaging that is crafted to ...
  6. Digital Marketing

    Digital marketing is the use of the internet, mobile devices, ...
Related Articles
  1. Financial Advisor

    Top 10 Email Marketing Tips for Financial Advisors

    These 10 strategies can help advisors make the most of email marketing.
  2. Investing

    Top 5 Signs Of A Bad Real Estate Agent

    The signs of a bad agent go beyond whether your home sells quickly.
  3. Investing

    The Lowdown On Low-Fee Real Estate Agents

    Find out how the services of low-commission real estate agents comapare to full-service realtors.
  4. Investing

    How Real Estate Agents Sell Their Homes For More

    A well-publicized statistic finds that when real estate agents sell their own homes, they tend to get a higher price. But why?
  5. Investing

    Understanding Real Estate Commissions: Who Pays?

    When you set out to buy or sell a house, one factor worth considering is the real estate agent's fees.
  6. Investing

    What Real Estate Agents Don't Want You To Know

    While they can be instrumental in helping you buy or sell a home, real estate agents may ulterior motives.
  7. Financial Advisor

    Top Email Marketing Strategies for Advisors

    These six email marketing strategies can help enhance newsletters sent to clients and gain new readers.
  8. Investing

    Tips For Working As A Real Estate Agent

    Here are a few ideas that will help you advance your career as a successful real estate agent.
  9. Investing

    Do You Need A Real Estate Agent?

    There's no guarantee that realtors will act in your best interest, but it may be worth hiring one anyway.
  10. Investing

    How to Choose the Right Real Estate Broker

    Buying or selling a home can be the largest financial transactions of your life. Here's how to choose the right real estate broker or agent.
RELATED FAQS
  1. How do real estate agents market themselves?

    Find an agent by checking popular real estate circulars featuring desirable neighborhoods and call the agent to ask questions ... Read Answer >>
  2. How do real estate agents get listings?

    Learn about how real estate agents get listings in top real estate markets, as well as in smaller areas, through utilizing ... Read Answer >>
  3. Why do real estate agents fail?

    Becoming a successful real estate agent requires a mindset that is built for success and strong, consistent action that buttresses ... Read Answer >>
  4. Do real estate agents need a degree?

    A career in real estate often leads to great opportunities. Find out what are the kind of education and training a real estate ... Read Answer >>
Hot Definitions
  1. Ethereum

    Ethereum is a decentralized software platform that enables SmartContracts and Distributed Applications (ĐApps) to be built ...
  2. Cryptocurrency

    A digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of ...
  3. Financial Industry Regulatory Authority - FINRA

    A regulatory body created after the merger of the National Association of Securities Dealers and the New York Stock Exchange's ...
  4. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs are often issued by companies seeking the capital to expand ...
  5. Cost of Goods Sold - COGS

    Cost of goods sold (COGS) is the direct costs attributable to the production of the goods sold in a company.
  6. Profit and Loss Statement (P&L)

    A financial statement that summarizes the revenues, costs and expenses incurred during a specified period of time, usually ...
Trading Center