n a recent survey, business people from a variety of industries were given a difficult choice: If you had to do without either telephone or e-mail, which would you give up?

Surprisingly, 50% of respondents would ditch their phones and communicate solely by e-mail. Irrevocably, the Internet has changed the way we work, play and live. Fifteen years ago, e-mail was a novelty; today, it's indispensable to half of the workforce.

Feet-on-the-street salespeople are among the last to fully integrate e-mail into their businesses. Most agents use e-mail to confirm appointments and keep in touch with the office but wouldn't dream of using it for sales pitches or initial merchant contact. Why? Most reps are more comfortable closing deals in person, and even the most effectively crafted and targeted e-mail message will never be as persuasive as a compelling, face-to-face pitch.

However, e-mail is a valuable channel for marketing services, prospecting for leads and building retention. In this Blackberry age, e-mail is exceptionally convenient; you can send e-mails from airports, cars or hotels__ - whenever you have a few spare minutes. Also, the majority of e-mail marketing efforts cost only time.

E-mail can help you reach new merchants

The most daunting and crucial step to e-mail marketing success is building a strong, targeted e-mail list. Fortunately, this task is getting easier.

As Web search engines have become more accurate and the volume of information archived online has increased, it's gotten easier to track down merchants' e-mail addresses. Visit Web sites of businesses that operate in your area to gather addresses. Use regional Web directories of sites like Google and Yahoo to find contact information - including e-mail addresses - for businesses in targeted geographic areas. Chambers of commerce and other professional organizations can be great list-building resources. Consider approaching them about purchasing or bartering for new members' e-mail addresses.

According to some experts, people change e-mail addresses about every two years, on average, so you may encounter some out-of-date information. Once you've built a solid list, re-check it periodically and remove inactive addresses.

For a more aggressive approach, purchase e-mail addresses from a list broker. Seek one that specializes in the e-mail market. Many can target prospective customers by industry type, volume, location, months/years in business and more.

The price of an e-mail list is approximately $250 for 1,000 active addresses (pre-selected to meet your specifications). Marketing to these addresses costs only the time it takes to compose a promotional e-mail. If paying a list broker puts you off, think of this: How else can you reach 150 specific, targeted merchants in only minutes for the price of a tank of gas?

E-mail can help you retain merchants

Use e-mail to keep your current merchants happy and reduce their chances of losing them the next time a competitor offers a slightly lower rate.

Also, ask new merchants for permission to send them e-mail updates. (We recommend monthly messages, but try quarterly messages if you anticipate not having enough content for 12 e-mails yearly.) If merchants know you won't sell their information or spam them, they won't hesitate to provide you with e-mail addresses.

Make your content relevant and useful. Avoid a "salesy" tone or readers are likely to click Delete right away. Sample stories could focus on new products and services, useful business tips on managing risk or interpreting a merchant statement, or the latest technology.

E-mail can help you get merchant leads

Do you have a merchant referral program (in which merchants give you leads in exchange for a small bonus on each converted merchant) in place? If so, use e-mail to capture new leads with minimal effort and zero cost.

Simply include a note in each outgoing e-mail encouraging merchants to reply with the names and contact information of leads. Offer to pay them a small amount for each lead who becomes a client. The reason for this is simple: It takes effort to pick up the phone and talk about someone who needs credit card processing services; it's much simpler to provide a name and number in an e-mail reply. More importantly, merchants tend to forget about referrals when business gets hectic. Sending monthly reminders of the easy income opportunity referrals provide will ensure that they remember to pass contacts along.

Another simple way to generate leads is to include a message at the bottom of each e-mail that gives merchants permission to forward it to friends or colleagues. Word-of-mouth is the most powerful form of advertisement. And with e-mail, spreading the word is as easy as clicking Send.

Our next column will provide an in-depth look at constructing e-mail messages that translate into major sales.

Nancy Drexler is the Marketing Director and Sam Neuman is the Communications Specialist of Cynergy Data, a merchant acquirer that distinguishes itself by relying on creativity and technology to maximize service. Cynergy offers its ISOs: VIMAS, a cutting edge back-office management software; Vimas Tracking, a ticketing system that makes responses to customers fast, accurate and efficient; Brand Central Station, a Web site of free marketing tools; plus state-of-the-art training, products, services and value-added programs, all designed to take its ISO partners from where they are to where they want to be. For more information on Cynergy, e-mail Nancy Drexler at nancyd@cynergydata.com .