Email marketing is among the most cost-effective marketing platforms. Businesses earn an average of $38 for every dollar spent on email marketing. That’s rather remarkable. But how much does email marketing cost? Let us dig deeper into this topic and share with you everything you need to know about email marketing expenses. From email marketing tools and list creation to managing your operations in-house — all are gathered here. 

Email Marketing Cost For Each Month

Of course, there is no fixed amount that all companies should have on their virtual cards for online advertising. The cost of your email marketing campaign will be determined by a number of criteria, including:

• Size of your email list;
• Email send out frequency;
• Cost of your email provider.
• Additional costs for tools and services used.

The good news is that you can manage the majority of these elements to keep your expenditures low. Let’s go over each item that is a part of the final cost.

1. Size of Your Email List

The number of contacts on your email list is one of the most important elements influencing monthly email marketing costs. Most email service providers charge you depending on the number of subscribers. Many suppliers, such as SendinBlue, have a 300-to-2000 contact minimum. Hubspot, on the other hand, allows for up to one million email contacts, whilst Sendinblue does not. 

2. Monthly Email Volume

Some email service providers charge depending on how many emails you send each month, while others use a “pay as you go” price approach. Simply multiply the total number of contacts on the mailing list by the number of emails that each subscriber will receive. Some services allow you to send 10,000 emails each month. If you want to send a large number of emails, switching to an email service provider that provides limitless email capacity is critical.

List segmentation is a key element to learn about here. You may now segment your email list and send promotional emails just to recurring customers. This will minimize the volume, and hence the monthly expense of email marketing.

3. Email Send out Frequency

Another aspect that impacts email marketing expenditures is the frequency with which you send emails. If you simply send emails rarely, you’ll most likely pay less than someone who sends them on a regular basis. This is because most email service providers provide discounts to infrequent senders. The cost of your email campaign might also vary depending on its duration. If you want to run a long-term email marketing campaign, you may need to spend extra upfront to get started. However, if you’re simply doing a short-term campaign, you may be able to get away with a smaller spend.

4. Quality of Your Email Lists

An email user has hundreds of unopened emails. The quality of your email list is another aspect that might influence the cost of your campaign. Sending emails to an uninterested audience wastes time and money. To remove the inactive subscriber from the list, you will have to spend money on in email validation solutions such as ZeroBounce, Kickbox, NeverBounce, Mailercheck, Bouncer, and so on.

If you have a high-quality email list full of engaged subscribers, you’ll most likely spend less than someone with a low-quality email list full of disengaged subscribers. Email service companies value higher-quality lists more. The typical percentage for a good email list is 15-20%, although it may go as high as 25%.

5. Email Design

Attractive and flexible email designs are critical for generating quality leads. Typically, all software and service providers provide a library of high-quality templates and drag-and-drop editors. You may also create an intricately comprehensive and personalized email campaign. It will take longer and may cost more to make. Most email service companies charge a fixed or hourly fee. You should expect to spend $100 to $2,000 for each design. The more customized the email design, the higher the price.

6. The Cost of the Email Service Provider

The cost of your email service provider will also influence the cost of your email marketing strategy. There are several email service providers, each with their own pricing structure. Some services charge by the number of persons on your list, while others charge a set monthly rate.

Moosend costs $9 per month for 500 contacts, whereas Omnisend and ActiveCampaign charge roughly $15 for the same amount of contacts. On the contrary, ConvertKit just charges $15 per month for 300 contacts. SendinBlue is another premium option. It costs $25 to send 20,000 emails every month. You could anticipate spending between $100 and $500 per month for 10,000 connections on any platform. Most of these platforms provide a free version for a short time. Always sign up for free trials to see which is most suited to your marketing goals.

7. Email Acquisition Costs

Email acquisition fees are involved with adding email addresses to your database. These may include the expense of purchasing or renting email lists, as well as the cost of running advertisements to expand your list. Acquisition fees vary based on the size of your email list and how often you send emails. A small business’s typical cost per email is between $0.10 and $0.30. The average cost per email for a mid-sized organization is between $0.30 and $0.50. For a big company, the average cost per email might be $1.00 or above. Of course, these are only averages, and your real costs might be greater or lower based on a variety of circumstances.

8. Additional Features

The extra elements you choose to aid with your email marketing campaign may increase your price. For example, if you use an email template provider, you must pay for the templates you use. If you want a tool to aid with email list segmentation and an email automation feature, you will have to pay for it. Furthermore, targeting a certain audience in a specific geographical area might affect the cost of your email marketing, just like the email attachment size limit. If you want to reach a high-value foreign audience, you may have to spend extra. Email deliverability reports have an associated cost. This guarantees that your emails reach your subscribers’ inboxes.

Finally, email analytics software allows you to track the performance of your email marketing campaign. This allows you to measure things like open rates, click-through rates, and unsubscribe rates. Some email marketing software may include additional unique add-ons to improve your email outreach, such as pop-ups and SMS integration. So, before deciding on a service provider and price plan, be sure to thoroughly review the features. It is highly recommended that you begin your email campaign with minimal functionality. You may always upgrade and unlock premium features if your email list reaches a particular size.

Email Marketing Costs: Insourcing vs. Outsourcing

When it comes to email marketing campaigns, there are two options for your company: outsourcing and insourcing. Each has advantages and disadvantages, and the best option for your organization will be determined by a variety of criteria. Here’s an overview of the email marketing pricing for each choice to help you set a budget for your email marketing campaign.

Insourcing Email Marketing

Insourcing email marketing implies that you will manage all components of your campaign in-house. If you elect to outsource email marketing, you will need to hire people to oversee the campaign and set aside money for email marketing software and other resources. The cost of insourcing will vary based on the size of your team and the breadth of your campaign. However, you should anticipate spending between $1,000 and $10,000 each month from your virtual card.

Outsource Email Marketing

Outsourcing email marketing may be a great alternative for firms who lack the time or resources to maintain their own campaigns. Several reliable email marketing services can handle all parts of your campaign, including strategy and design, list management, and reporting. The cost of outsourcing email marketing varies based on the size and breadth of your campaign, but bigger organizations may expect to spend between $500 and $12,000 each month. The good news here is that you can significantly minimize this amount if you choose the right virtual card for recurring payments. 

Plan Your Budget Accordingly

It is always a good idea to calculate your email marketing costs in advance and make sure that they are a part of your monthly budget covered by your virtual credit card. Thus, you can be sure that no unexpected or urgent situations pop up.