Email marketing is often lauded as one of the most effective and affordable marketing channels available to businesses today. And it’s true – email marketing can have a very high return on investment (ROI) - a whopping 4,300%!
That’s an incredible figure, and it’s no wonder that businesses are eager to get started with email marketing.
But how much does email marketing cost per month?
There are a few different factors that will affect the cost of your email marketing campaign, including:
● The size of your email list
● The frequency of your emails sends
● The cost of your email service provider
● The cost of any additional tools or services you use
The good news is that you can control most of these factors to keep your costs down. I’ll break down each of these factors in more detail below.
Email Marketing Cost: What Are The Factors?
1. The size of your email list
The number of contacts on your email list is one of the biggest factors that will affect the email marketing cost per month.
Most email service providers charge you based on your subscriber count. Many vendors, like SendinBlue, allow a 300-to-2000 contacts minimum.
On the contrary, Hubspot supports one million contacts in the email list, while Sendinblue has no caps.
So, for a large email list, you can expect to pay more than someone with a small email list.
2. The monthly email volume
Some email service providers charge you based on the number of emails you send each month, while others have a “pay as you go” pricing model.
Simply multiply the total contacts in the mailing list by the number of emails each subscriber will receive.
Some platforms offer you to send 10,000 emails per month. If you plan to send a lot of emails, upgrading to an email service provider that offers unlimited email volume is crucial.
List segmentation is an important feature to learn about here. You can now narrow your email list down into subcategories & choose to send promotional emails only to recurring customers. This will reduce the volume & subsequently, the email marketing cost per month.
3. The frequency of your email sends
How often you send emails is another factor affecting your email marketing costs.
If you only send occasional emails, you’ll probably pay less than someone who sends emails daily or weekly. This is because most email service providers offer discounts for infrequent senders.
The length of your email campaign can also affect the cost. If you’re planning a long-term email marketing campaign, you may need to pay more upfront to get started. However, if you’re only running a short-term campaign, you may be able to get by with a lower budget.
4. The quality of your email lists
An email subscriber with thousands of un-opened email
The quality of your email list is another factor that can affect the cost of your campaign. Sending emails to an unresponsive audience is a drain on your resources - both time & money.
You’ll need to invest in email validation tools like Kickbox, Bouncer, ZeroBounce, NeverBounce, Mailercheck, etc., to remove the inactive subscriber from the list.
If you have a high-quality email list full of engaged subscribers, you’ll probably pay less than someone with a low-quality email list full of unengaged subscribers.
A high-quality list tends to be more valuable to email service providers. The average number for a healthy email list is 15-20%, but it can be as high as 25%.
5. The complexity of your email design
Attractive & responsive email designs are essential in generating quality leads. Usually, all software & service providers offer a range of built-in high-quality templates & drag-and-drop editors.
You can also choose to design an elaborately detailed & customized email campaign. It will take longer to create and may be more expensive to produce.
Most email service providers charge a flat or hourly rate. You can expect to pay between $100 and $2000 per design. The more custom the email design, the higher the costs.
6. The cost of your email service provider
The price of your email service provider will also affect the cost of your email marketing campaign.
A wide range of email service providers are available, and they all charge different prices. Some providers charge based on the number of people on your list, while others charge a flat monthly fee.
Moosend charges $9 for 500 contacts/month, whereas Omnisend & ActiveCampaign will cost you around $15 for the same number of contacts. On the contrary, ConvertKit is charging $15 for 300 contacts/month only.
Another premium option would be SendinBlue. It costs $25 to send 20K emails per month. You can expect to pay between $100/month and $500/month for 10,000 contacts on any platform.
Most of these platforms offer a free version for a limited period. Always sign-up for the free trials to see which is most well-suited for your marketing needs.
7. Email Acquisition costs
Email acquisition costs are associated with adding email addresses to your list. These can include the cost of buying or renting email lists, as well as the cost of running ads to grow your list.
Acquisition costs can vary depending on the size of your email list and how often you send emails. The average cost per email for a small business can range from $0.10 to $0.30. The average cost per email for a mid-sized business can range from $0.30 to $0.50. And for a large enterprise, the average cost per email can be as high as $1.00 or more. Of course, these are just averages, and your actual charges may be higher or lower depending on several factors.
Factors that can affect your email acquisition costs include the following:
● The channel you use to acquire emails (e.g., organic signups, purchased lists, etc.)
● The method you use to acquire emails (e.g., pop-ups, lead magnets, etc.)
● The advertising industry you're in (Cost per click and CPM can vary widely depending on the industry)
A - The channel you use to acquire emails:
If you rely on organic signups to grow your email list, your acquisition costs will be relatively low. You may need to invest in a good email marketing platform and put some effort into promoting your signup forms, but you won't have to pay for each email address like you would if you were purchasing a list.
Of course, organic growth can be slow, and it may take some time to build up a large enough email list to reach your desired audience. If you're in a hurry to grow your list, you may need to turn to paid methods of email acquisition.
B - The method you use to acquire emails
Purchasing email lists is another option, but it's important to be aware of the potential risks. If you buy a list of emails from a less-than-reputable source, there's a good chance that many of the addresses will be outdated or invalid. This can lead to a high number of bounces and could get your email marketing campaign off to a rocky start.
Another option is to use lead magnets or other opt-in forms to encourage website visitors to sign up for your email list. This can be an effective way to grow your list quickly, but it will also likely increase your email acquisition costs since you'll need to offer something valuable in exchange for an email address.
C - The advertising industry you're in:
The cost per click (CPC) and cost per thousand impressions (CPM) of your email acquisition campaign will vary depending on the advertising industry you're in. For example, the CPC for an email acquisition campaign in the legal industry is $48.43, while the CPC for an email acquisition campaign in the retail industry is just $0.12 (source: Wordstream).
This means that if you're in a higher-priced industry, you can expect to pay more for each email address you acquire. However, it's important to remember that your actual costs may be higher or lower depending on many factors:
● the specific industry you're targeting
● the quality of your list
● the effectiveness of your email acquisition campaign
For a more accurate estimate of your email acquisition costs, you'll need to consider all of these factors and do some research on average costs in your specific industry.
8. Additional features
The additional features you select to help with your email marketing campaign might add to your costs.
For example, if you use an email template service, you’ll need to pay for the templates you use. Or, if you want a tool to help with email list segmentation & management, you’ll also need to pay for that.
Furthermore, targeting a specific audience at a specific geographic location can also influence the cost of your email campaign. For example, if you’re targeting a high-value international audience, you may need to pay more to reach them.
There’s a cost to email deliverability reports. This ensures that your emails actually reach your subscribers’ inboxes.
And lastly, you can monitor the results of your email marketing campaign with email analytics software. This will help you track things like open rates, click-through rates, and unsubscribe rates.
Some email marketing software might offer other unique add-ons to boost your email outreach, like pop-ups & SMS integration. So, make sure you have a detailed look at the features before choosing your service provider & pricing plans.
It is recommended you start your email campaign with limited features. You can always upgrade and unlock premium features when your email list has grown to a certain number.
To get a clear picture of how much your email marketing campaign will cost, we recommend talking to an email marketing service provider at Legiit. This will help you to estimate your costs based on your specific needs.
Now that we’ve looked at the different factors that affect email marketing costs per month, let’s look at the options available for email marketing.
Email Marketing Costs: Outsourcing Vs. Insourcing Vs. DIY
When it comes to email marketing campaigns, there are three main choices for your business: outsourcing, insourcing, and DIY.
Each has its own pros and cons, and the right choice for your business will depend on a number of factors. Here's a look at the email marketing costs of each option to help you allocate a budget for your email marketing campaign.
Outsourcing Email Marketing
Outsourcing email marketing can be an excellent option for businesses that don't have the time or resources to manage their own campaigns. Several reputable email marketing agencies can handle all aspects of your campaign, from strategy and design to list management and reporting.
The cost of outsourcing email marketing will vary depending on the size and scope of your campaign, but you can expect to pay anywhere from $500 to $12,000 per month for larger businesses.
Insourcing Email Marketing
Insourcing email marketing means that you'll be handling all aspects of your campaign in-house. If you decide to insource email marketing, you'll need to allocate staff members to manage the campaign and budget for email marketing software and other necessary tools.
The cost of insourcing email marketing will vary depending on the size of your team and the scope of your campaign, but you can expect to pay anywhere from $1,000 to $10,000 per month.
DIY Email Marketing
The third option for email marketing is DIY. This approach can be a great way to save money, but it requires a huge investment in time and resources.
If you decide to go the DIY route, you'll need to invest in email marketing software and take the time to learn how to use it effectively. You'll also need to allocate staff members to manage the campaign and handle customer queries. DIY email marketing costs vary from $9 to $1k per month.
Which option is right for your business? The answer will depend on many factors, including your budget, your level of expertise, and your time commitments. If you're unsure which option is best for you, consider speaking to an email marketing expert at Legiit to get started.
Email Marketing Software: How Much Does It Cost?
The results of a successful email marketing campaign depend largely on the software you choose. It ensures that your email actually gets delivered to the target audience. There are many marketing tools available, each with its own price tag.
The most popular email marketing software programs include:
2. Hubspot
3. MailChimp
4. Moosend
5. Sendinblue
These programs offer a range of prices, depending on the features and services you need. Read below:
1 - Constant Contact
Constant Contact is another popular & fastest-growing email marketing software program. Its interface is highly user-friendly. The software features a drag-and-drop editor with hundreds of email templates & built-in image library to design your email campaign.
Each basic care account features
● Easy tracking & reporting
● Social media sharing
● Facebook Ads integration
● And powerful e-commerce integrations
The plans start at $9.99/month for 500 contacts after the trial period. It is ideal for small businesses diving into email campaigns for the first time. The highest limit is $300/month for over 50,000 contacts. It offers a 7-day free core trial for new users.
2 - Hubspot
Hubspot has been a leading player in the CRM and email marketing space for years. Most of its services are free to start, but there are plenty of powerful automation features that will help grow your business if you use them correctly. These include:
1. A/B testing
2. Lead capture forms and popups
3. Email automation
4. Marketing CRM
5. Contact management
6. Segmentation
7. Reporting and analytics
8. Integration with Salesforce, Zapier, WordPress, and more
Hubspot’s pricing starts at $45 per month for up to 1,000 subscribers, and 2,500 email sends; $150/month for up to 5,000 subscribers, and 12,500 email sends; $250/month for up to 10,000 subscribers, and 25,000 email sends.
3 - Moosend
Moosend is complementary to Constant Contact. It is a budget-friendly email marketing service with email list-building tools and landing page templates to create newsletter emails for small businesses swiftly.
What’s unique is all plans come with powerful conversion optimization & marketing automation features to create a personalized email design. Moosend offers a 30-day free trial for new users, and plans start at $9 per month after the trial period.
4 - MailChimp
MailChimp is a popular email marketing software program that offers a free plan for those with a small mailing list or who send a limited number of emails per month. For larger lists or more frequent emailing, MailChimp has a number of paid plans that start at $17 per month. But it is not recommended if you’re looking for marketing automation features.
These are just a few examples of email marketing software programs that are available. The cost of each one will vary depending on the features and functionality you need.
5 - Sendinblue
Get the best of both email & SMS marketing with Sendinblue.
It is best for large enterprises looking for an automated email marketing campaign. Its user-friendly marketing automation tools allow you to set up transactional emails, follow-up emails, and segment subscribers to boost engagement from a targeted audience.
SendinBlue offers a free plan with SMS & marketing integration for those who have a small mailing list or send a limited number of emails per month. For larger lists or more frequent emailing, Sendinblue has a number of paid plans that start at $25 for 20k emails per month.
They offer three different premium plans with more advanced features like landing page builder, live chat, sales CRM, and Facebook ads integration so you can get more value for the given price.
When choosing an email marketing software program, be sure to compare the prices of different programs to find the one that best fits your budget.
Email Marketing Cost For Small Business: Calculating Estimates with Examples
Email marketing is an effective way to reach your target audience but it can also be a bit pricey. The cost of a complete email marketing campaign varies depending on the size of your mailing list, the number of emails you send, and the features and services you need.
Here's an example to help you estimate the cost of email marketing might for your business.
Suppose you’re just starting out your e-commerce website & have a small mailing list of 1000 contacts. You hire an email copywriter to write high-converting email copy for your business. A 100-word email copy that drives action will cost you $10. You aim to send a weekly email to your loyal subscribers.
You’d go for the basic subscription of ConstantContact. This is because their offers are very small-enterprise-friendly, starting at $9.99/month for 500-contacts and going up to $19/month for 1000-contacts. It also allows social media & e-commerce store integrations for Shopify to collect emails, grow your lists & scale your business. The cost of this email marketing campaign with ConstantContact would be $30/month for 1000-contacts.
Now let’s look at the bigger picture.
You're a fast-growing website like Legiit with over 10,000 email subscribers. Your email goes out twice every week, so you’d like an email marketing service that includes a lot of bells and whistles. SendinBlue is the best choice with powerful marketing automation, AB testing, SMS integration, & advanced statistics, all for $65/month with unlimited contacts.
Yes, you read that right!
Unlimited contacts for your ever-growing website & the total email marketing cost would be $65 per month + $20 for two email copy = $85 per month only.
As you can see, the cost of an email marketing campaign can vary quite a bit. The best way to estimate the cost for your small business is to consider how many emails you’ll need to send, how often you’ll need to send them, and what features and services you’ll need. You can then compare the prices of different email marketing providers to find the one that best fits your marketing budget.
There are a few different things you can do to keep your email marketing costs down, including:
1. Use an email service provider that offers discounts
2. Use a tool to help with email list management
3. Keep your email list quality high
4. Use an email template service
Email Marketing Service Providers: How Much Do They Cost?
Want to outsource it to an email marketing service provider or agency?
The cost of an email marketing service depends on the features and services you need. Some providers offer basic plans that include only the essentials, while others offer more comprehensive plans with a wider range of features.
Email marketing services providers typically charge up to $200 per hour or a flat fee of $1000 per month. Their packages include a number of services:
1. The content creation services such as template design, email copywriting, copy editing, and complete email campaign design
2. Email analytics reports tracking the performance of your campaign
3. Strategic services, including market insights & future roadmap to scale your business
4. Technical support for everything from vendor selection to data integration
Be sure to compare the prices of different email marketing agencies to find the one that serves all your needs.
Or outsource your email marketing campaign at a discounted price on Legiit.
Legiit is a leading, community-driven freelance marketplace that helps connect your business to dedicated freelance service providers from around the world.
Our expert email marketers bring everything to the table, from writing emails that are always opened and building targetted email lists to managing your bulk email marketing campaign. With them on the team, be sure to convert your ideal audience into recurring customers.
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