An In-Depth Explanation of Email Marketing Costs
An email marketing campaign is one of the most effective methods to increase brand recognition and extend market reach. But when costs are taken into account, does email marketing remain one of the best marketing efforts?
Indeed, costs are a significant factor when deciding on an email strategy. But, of course, you wouldn't want to spend thousands for something you're unsure of, especially when your business is on the line. But we got you!
This article will explain email marketing costs in-depth to help you with your marketing strategy. Keep reading to learn more!
Why Email Marketing?
An email marketing strategy can increase your annual revenue in just a few clicks. With the correct tools and extra work, you can transform an email into six figures in return.
With email marketing, you can:
- Increase brand recognition
- Attract new and current clients
- Create an audience
So, how much should you invest in email marketing?
How Much Does Email Marketing Services Cost?
Email marketing services cost can differ considering many factors, such as the number of subscribers, how intricate your campaigns are, and whether you use an agency or handle your email campaign.
Typically, a mid-size business spends $10 to $1500 monthly for email marketing. While businesses that are in contract with an agency pay $300 to $1500 monthly.
8 Factors Affecting Email Marketing Costs
Although handling your email marketing campaigns would lower your expenses, it will not be easy, considering that you'll need good email marketing tools. Aside from that, you also need to ensure that your email marketing campaigns will be effective.
On the other hand, hiring an agency would lessen your stress and worry. They have effective email marketing tools like campaign monitoring and are experts in creating an email marketing strategy. But of course, hiring one would require you to spend money.
If you plan on hiring an email marketing agency for your email campaigns. Here is the list of factors that would affect email marketing cost.
1. Email Templates and Design
Email marketing templates may be quite helpful in capturing high-quality leads. As a result, several email marketing platform includes drag-and-drop builders, pre-built templates, and the option to create customized templates.
You may effortlessly establish your email campaigns and improve them using prepared templates.
Yet it also raises email marketing pricing. With their commercial packages, well-known email marketing tools like Moosend and MailChimp provide over 100 templates. Hence, the program subscription costs range from $3 to almost $1000 monthly.
2. Automation Tools
Email automation tools can significantly affect your email campaigns. They assist you by providing the following features
- Automated emails
- Time optimization
- Campaign Monitor
- Results Tracker
- Dynamic content
- Personalized emails
However, since automation tools are technologically innovative. The overall email marketing cost could increase, but the outcomes will more than compensate for it.
3. Monthly Email Volume
Monthly email volume refers to the number of emails distributed to subscribers monthly. The formula for calculating it is dividing the total number of subscribers by the number of emails you deliver to each.
Depending on a basic plan won't be effective for you if your company is growing since it has limited features. At some point, you will have to convert to the premium plan. If you choose a premium plan, you could expect to pay the marketing cost from around $8 to $1000 monthly.
If some email marketing service only provides you with five to ten thousand emails monthly, others can send you up to twenty million. Of course, the plan's pricing would be based on the email volume and total email marketing cost.
Technology in email marketing pertains to the functionalities you may use when using email marketing software. This also adds to the email marketing pricing. However, you can also get limited features if you're short on budget and upgrade whenever your business is ready.
5. Email Marketing Software
A suitable email marketing software is the first step in streamlining a successful email marketing strategy. Numerous email marketing options are available, with plans to suit every company's demand and price range. But remember that when you opt for advanced email marketing software, you will also incur additional email marketing cost.
6. Customer Support
Customer assistance is important for every email campaign. The consumers can get assistance along the way from a customer care team. However, this feature is not always available in every email marketing service, so it will influence the overall marketing cost.
7. Number of Subscribers
How many subscribers you have also affects the total email marketing cost. If you visit any email marketing agencies, you'll notice on their pricing page that the number of email subscribers you have affects the cost of email marketing.
8. Hidden Costs
Surprise costs could be annoying and can ruin your budget, which will also add worry. Of course, you wouldn't want that to happen.
To prevent that from happening, you must thoroughly inspect the situation to rule out any surprises. Most providers of email marketing software are open and honest. However, you should be aware of various add-ons and email use restrictions.
For instance, Mailchimp assesses email marketing fees depending on contacts. Hence, you will also be charged for the quantity of unsubscribed contacts.
Email Marketing Services Costs
Now that you know the factors influencing email marketing cost, creating a budget should be your first step, especially if you plan to hire email marketing agencies.
And to give you an idea of how much email marketing service costs, we've listed four services and their costs. Keep reading!
1. Email Marketing Agencies
Partnering with email marketing agencies is a great way to maximize your email marketing budget. With their help, you may efficiently send emails to unlimited contacts or subscribers while maintaining a professional email appearance.
Also, email marketing agencies can significantly benefit your business email marketing efforts. You can access professional email templates, email marketing platforms, tools for managing your email list, and monitoring tools for your email campaign analytics.
Moreover, with their help, you can ensure that your marketing channel and email delivery rates are effective and that it reaches the target landing pages.
But how much does an email marketing agency cost?
There's no absolute answer to that question. Unfortunately, most email marketing agencies don't disclose information regarding their pricing models. However, you may directly ask by contacting them.
You can negotiate regarding the initial investment for marketing emails. Plus, they can offer you email marketing online resources inclusive only for you!
2. Email Marketing Campaign
One of the email campaign's advantages is the allowing for flexible scheduling. You may also set up an automatic sequence of emails to give your email list subscribers relevant information in response to their activities, such as making an online purchase or completing signup forms on your website.
But the question is, how much?
Surprisingly, the pricing model for running your email marketing campaign would range from $15 to $100 hourly if you hired a professional employee, email marketing agency, or freelancer.
3. Imagery and Design Work
Believe it or not, a good design may increase consumer interaction and the likelihood that emails will result in purchases. You may, for instance, trademark your emails, include images of your goods or stock images, or even insert entertaining movies or animated gifs.
Remember that responsive email design ensures your email campaign is displayed and functions properly on any platform the reader uses. So how much should you prepare for imagery and design work?
Suppose you hire an in-house or freelance designer to create and brand your email templates. You'll likely spend $25 to more than $150 per hour; this expense may be huge!
Considering the number of emails and the cost per hour, this is not cost-effective, especially for small businesses. But, if you work with an email marketing agency, this expense could be reduced.
4. Digital and Media Marketing
Digital marketing is also one of the cost-effective marketing efforts you can use for your business advertising.
Many think that digital marketing and social media marketing are the same, but they are not. While social media marketing is a subset of digital marketing that focuses on using social media platforms, the latter covers all marketing operations.
For digital marketing, agencies charge around $80 and $200 per hour. If the email marketing efforts required 20 hours monthly at a rate of $100 per hour, you would likely spend $2,000 monthly for a standard service.
Why Hire Email Marketing Agency?
Considering all the information listed above, hiring an email marketing agency is convenient. Hiring a freelancer to handle every email marketing task would cost you a huge amount of money. Plus, it's stressful to keep in touch with all of them.
While if you hire an email marketing agency, chances are your marketing channels could improve. Additionally, an email marketing agency is a team consisting of professional people with a leader who directs them.
If you think thoroughly, hiring an email marketing agency will leave you stress-free.
Is Email Marketing Worth It?
Email marketing is one of the most effective marketing strategies that you can use for your business. But, if you're worrying about the expense, there are many ways you can use to lessen that part. Many agencies offer free plans and a free version with the most email marketing services.
With all that being said, it's evident that email marketing is worth a try.
You may also look for an email service provider like The Email Marketers, an email marketing agency that provides cost-effective services, even for a small business.