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How Much Does an Email Marketing Service Cost?


Email is a crucial marketing tool in the modern world of business. Email marketing allows you to reach hundreds or thousands of customers at once, in precisely the way many of them prefer to be contacted. It is an affordable way to promote your brand and boost sales.

Properly executed, an email marketing campaign has a high return on investment. Unlike other types of marketing efforts, email campaigns produce almost instant results. They make it easy to track exactly which customers are receiving your messages and which are acting on it.

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About Email Marketing Services

There are three types of vendors that offer email marketing services:

  • Application service providers (ASPs), or subscription services, are the most common. For a monthly fee, the service will host the email marketing software, manage the database and send messages you compose using their infrastructure. This is the least expensive option, making it ideal for small businesses. Monthly fees are based on either the number of emails sent or the number of email address on your list.
  • Full-service providers handle every aspect of your email marketing, from creating contenting to formatting and sending emails. This is ideal for companies that want to complete outsource email marketing, but the service is costly. Full-service firms are experts at personalizing emails to your customers and avoiding blacklists.
  • Software providers simply sell you the software that enables email marketing, then train your employees to use it. All of the work after that is done in-house. Email marketing software requires a significant upfront expense, but there are few if any recurring expenses. This option also allows complete control over your messaging and how it is delivered.

Cost of Email Marketing Services

Different ASPs structure their charges in different ways. Some vendors charge by the number of subscribers on your email list. A list with 100 names might cost $15 per month, while a list with 100,000 names might cost $500-$750. Other vendors charge by the number of emails sent - say $20-$25 for 1,000 emails or $500 for 100,000 emails. Volume discounts are available for large lists.

Some ASP vendors assess a one-time charge of up to $500 to get started, but few require an annual contract. Most offer pay-as-you-go plans. Cancel at any time if you’re not satisfied with the service.

Full-service provider fees start at about $2,000-$3,000 per month. However, costs can be dramatically higher for large companies with massive email lists.

Email marketing software starts at about $1,000, including setup, training, licensing and customer service.

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