Live From Seattle: RECA Members Drop Out

As the Responsible Electronic Communications Alliance (RECA) continues to carve out standards for the e-mail service industry, some of its members have dropped out because of the high cost of membership. Three members have withdrawn and two more are soon to follow. This will leave the membership at 11 companies.

The members that have withdrawn include MessageMedia, Responsys and E-mail Channel, RECA confirmed.

“We have had a couple of members drop out because of financial concerns,” said Christopher Wolf, RECA president. “But no one has dropped out because of any lack of commitment to the principles and we are still going ahead with our plans.”

With dues ranging from about $15,000 to $25,000 every four months, even e-mail service providers with healthy financials are pulling out. They feel their dollars are better spent elsewhere. For example, MessageMedia, which “plans to be back on track to profitability this year,” withdrew its membership in mid-December as part of a cost-cutting initiative, according to Richard Hurwitz, vice president of marketing and communications.

Making the point that standards are very important to the e-mail industry, Hurwitz said that MessageMedia is maintaining its membership in the Association for Interactive Media, a Direct Marketing Association subsidiary. “We decided to stay with the larger organization,” he said. “It


LIVE FROM SEATTLE: RECA Members Drop Out

As the Responsible Electronic Communications Alliance (RECA) continues to carve out standards for the e-mail service industry, some of its members have dropped out because of the high cost of membership. Three members have withdrawn and two more are soon to follow. This will leave the membership at 11 companies.

The members that have withdrawn include MessageMedia, Responsys and E-mail Channel, RECA confirmed.

“We have had a couple of members drop out because of financial concerns,” said Christopher Wolf, RECA president. “But no one has dropped out because of any lack of commitment to the principles and we are still going ahead with our plans.”

With dues ranging from about $15,000 to $25,000 every four months, even e-mail service providers with healthy financials are pulling out. They feel their dollars are better spent elsewhere. For example, MessageMedia, which “plans to be back on track to profitability this year,” withdrew its membership in mid-December as part of a cost-cutting initiative, according to Richard Hurwitz, vice president of marketing and communications.

Making the point that standards are very important to the e-mail industry, Hurwitz said that MessageMedia is maintaining its membership in the Association for Interactive Media, a Direct Marketing Association subsidiary. “We decided to stay with the larger organization,” he said. “It’s strictly a cost issue.”

Memberships in AIM range from $750 to $5,000.

Responsys chairman Anand Jagannathan said through a spokesperson that his company never officially joined RECA although RECA had listed Responsys as a member. Jagannathan said Responsys might join RECA at some point.

MessageMedia and Responsys said they both follow RECA’s proposed policy of giving consumers notice, choice access and security to their information. They also said insist their marketing clients use permission-based e-mail.

FloNetwork is expected to forgo its membership in RECA now that it is about to be acquired by DoubleClick. A fifth company, which refused to be named because it has not yet told RECA of its resignation, said it will soon withdraw. That company is in a strong financial position, but says it is doing well because it saves money wherever it can.

Meanwhile, RECA met this week with Microsoft to discuss RECA’s standards, according to Wolf. And, the group will have another in its continuing series of meetings with the Federal Trade Commission later this week.