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How Much Does an Email Marketing Service Cost?

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Email Marketing Service Prices

In today's world, email is one of the most powerful and effective methods of reaching your customers. Many of your customers use email as a primary means of communication, so if you're not reaching them via email, you might not be reaching them at all.

An email marketing campaign is a great way to build customer relationships, make sales and promote your brand. Create bulk mailing campaigns to announce a special offer or reward loyal customers. You can also target specific demographics and send surveys to request feedback - among many other applications.

About Email Marketing

There are three basic types of email marketing services. You can choose to purchase software and manage your own email marketing campaign or you can outsource all email marketing to an outside company.

  • Subscription-based services offer access to email marketing software for a monthly fee. The software is hosted on the provider's servers, so all of the technology is managed for you. However, your company is entirely in control of the content.
  • Software providers sell you in-house software that can be used to manage email marketing campaigns. The software sits on your company's servers and is managed by your own IT staff. You're also in control of all the content.
  • Full-service providers handle all of your email marketing from start to finish. There's no need to purchase software or manage the content of your marketing emails. The professionals will do it for you.

Most small businesses opt for subscription-based services, the least expensive approach. Large companies tend to opt for software providers or full-service providers, depending on the complexity of the marketing campaign and how much control they want to have over content.

It's also possible to hire a subscription service or full-service provider for just a single marketing campaign. However, if you anticipate continuing to use the service, it's a better investment in the long run to purchase software or sign a one-year contract with a subscription service or full-service provider.

Email Marketing Average Costs

Subscription-based services are the least expensive. Most charge a monthly or annual fee for their services, but the fee varies based on the complexity of your email marketing needs and the number of emails addresses the service needs to manage.

  • For $300 to $350 per year, you can purchase a subscription service that will manage anywhere from 2,500 to 5,000 email addresses.
  • If you spend $400 to $600 per year, the subscription service will probably manage anywhere from 10,000 to 50,000 email addresses.
  • For $800 per year, the service will manage hundreds of thousands of email addresses.
  • If you spend $1,500 or more per year, most subscription services won't set any sort of limit.

In addition, some subscription services charge a setup fee of $100 to $200. If you need help with technical issues, email support is usually free but phone support tends to cost extra. Exceeding your allotted number of email addresses will also cost extra - usually several cents per extra address.

In-house software and full-service providers come with a much higher price tag. In-house software can costs tens of thousands upfront, while full-service providers usually charge several thousand dollars for month.

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