If you run a small business that only needs to reach a few people, email marketing can cost as little as $30 – $50 per month. For companies that need to reach upwards of 25,000 prospects, email marketing costs can easily climb to $175 or more. There are other factors that affect pricing beyond volume, but ultimately in the email marketing world, the number of subscribers reached is the primary determinant of pricing.
The number one thing you need to look for when shopping for email marketing services is a company that is experienced in sending legal, CAN-SPAM compliant emails. Luckily, Internet companies tend to be reviewed heavily, and a little time spent reading reviews of any prospective provider should quickly reveal any red flags that may exist in this regard. Companies that aren’t CAN-SPAM compliant will only result in messages that end up directly in your prospects’ spam boxes instead of their inboxes.
Are you looking for new ways to improve the traffic to your business? Are you considering email marketing as a source but don’t know how much it will cost to use it?
Did you know that Email is 40X more effective than social media for customer acquisition? With the increase of email marketing, taking advantage of this number will help your business to grow.
Emails have been around for a long time now, but using them for marketing purposes makes an all-new high. Reading this article is taking the first step to using them to improve your business’s sales.
What is email marketing, and how much should you budget for it? We explain the facts you need to know in this guide to the email marketing cost.
What Is Email Marketing?
As mentioned above, email is becoming a giant in the world of marketing. But what is email marketing? It’s a business method to send commercial emails and links to people. Increasing their traffic and improving their return on investment.
The first thing a company needs is a subscriber list of potential clients. You can grow this either by naturally growing it yourself or by buying it from companies. Whatever your growth method, your list will be full of people permitting you to contact them.
Let’s say you now have a decent-sized list. Your next step is to send commercial emails to this list to bring in traffic and potential sales. These emails could have a couple of angles you could take.
Your email structure could be promotional. A promotional email is where you would send an email campaign covering what deals your company is offering. Make sure you are adding links to these emails. These links will take your subscribers to your site and buy your products or services.
Another angle your email could take would be a more informative style of email. Informative email is where you are sharing news about your business. Be it a new product or a new avenue you are venturing into within your company. But, it doesn’t have to be just news. It could be a chance to share your thoughts on a subject or tips for others to think about regarding that subject.
How Much Does It Cost to Buy an Email List?
Depending on your purchasing volume and email list will cost you between $0.05 and $0.25 apiece. As I have said before, you have two options when gathering your email list. You can either put in the work or grow your list naturally through networking. Or, you can save time and buy your email list from companies.
When buying email addresses, you need to consider how many you need. The more extensive the email list, the higher the potential charge for sending your campaign.
Let’s say you were looking to buy between 3,000 and 5,000 email addresses. This could cost you anywhere from $400 to $1,700. If these addresses were businesses, this could rise to $250 to $1,000.
Best Email Marketing Software and the Cost
Email marketing software aids you with all your new subscribers. You may find that going to your email list to see if there are any new followers a bit longwinded when starting.
Adding to that task is placing the new additions into different potential sub-categories. Once sorted, you will then need to send out a welcome campaign yourself.
Bringing in email marketing software can do all that for you.
Here’s a list of some popular email marketing companies:
Constant Contact: Starts at $20/month, up to 3 users.
Vertical Response: Starts at $11/month. Send unlimited emails.
Pinpointe: Starts at $66/month. Up to 10,000 contacts.
GetResponse: Starts at $13.50/month. Includes list size of 1,000.
iContact: $15/month. Includes up to 1,500 contacts.
But, what is the best email marketing software for you?
This question depends on what you and your business wish to get out of it. When it comes to handling the inbound side of your email campaigns, the software you use needs to be perfect. There are a few things you should look into when choosing software.
Are you able to access the software from your mobile? Having easy access through your phone may be an advantage for you if you move a lot due to your business.
Does the software have an auto-respond ability? Having this option is great for those who don’t have easy access to the software. It will send out preset campaigns to your new additions. It also gives you a range of other automatic response options.
Research companies such as OptinMonster, RafflePress, and Contactually. This will give you an idea of what they have to offer and which one is right for you.
How Much Does It Cost?
The cost of the software will vary depending on the company. You can find cheap ones, but they won’t have as many perks as the others. You can find expensive ones, but some cheaper ones may be more suited to your needs.
It also depends on which of the different tiers you buy. The higher the tier, the more perks you will gain. The price of this can average anywhere from $4 a month to around $900 or higher. You may be lucky and find a free one, but look into what they have to offer before you save that money.
Also, look into free trials. Some companies will offer free trials. This allows you to ensure their software is what you are looking for before buying.
When working with emails, or online/cloud-based products, you should always ensure safety. You want to avoid the email marketing cost of being hacked or having your data stolen. You can do this by using antivirus software.
Choosing Email Marketing Companies
Are you choosing to get your new email list to grow? Or are you looking to bring in a new provider to help your current list hit new potentials? Either way, finding the best email marketing company for you is essential.
If the thought of creating these email campaigns from scratch worries you, then fear not. There is a range of companies available to help you build your campaigns.
Email marketing companies help with the outbound side of email marketing. The companies could help you when physically sending out your campaigns. You can use it to help build and personalize the campaigns you wish to share with your list. It can also allow you to send your campaign to a sub-category of your list, leaving some subscribers out.
There is a range of companies, all focusing on different aspects of your journey. For example, Constant Contact is a beginner-friendly email-building site. It is perfect for those starting. Whereas MailChimp has the best free plan for those who do not want a high payment when starting.
Email Blast Cost per Thousand
When it comes to email campaigns, sending more will get you a more significant reach than sending it to one or two people. You will want to send it by the thousands called Cost Per Mille (CPM). Your CPM rate tells you how much you are spending per thousand emails.
How Much Does It Cost to Email 10,000 People?
For example, let’s say your CPM is $20. You have a subscribers list of 10,000 subscribers to which you wish to send a campaign to all of them. You will be paying $200 for each campaign you send out. If you do this 3-5 times each week, you will be paying between $2600 and $4334 a month.
There is the risk of paying for these campaigns and nothing coming from it. Yet, there are ways of using safer pay-per-lead advertising. This can have an effect of up to ten times your return on investment.
What Is CTR in Email Marketing?
Your CTR is the most crucial part of an email campaign. But what is CTR in email marketing? CTR stands for Click Through Rate. Let’s look into this term a little closer.
As mentioned before, adding links to your emails is key to bringing traffic to your site. These links can be a hyperlink, a Call To action, or even an image used within each email. The CTR counts how many people clicked these links per campaign.
Your CTR uses these links as part of an equation to find how successful a campaign is. It looks at the number of clicks received from each email. It then divides it by how many of that email has been sent through your campaign.
Before it executes this equation, it does take into account the amount of bounced emails. These are the emails that are sent but couldn’t be successfully delivered to. This could be for many reasons from both the sender and receiver.
Some companies will count unique clicks as opposed to each click. A unique click is the first time the recipient clicks on the link but not each click afterward.
Once the program completes the equation and takes all different aspects into account, you will learn your average CTR. A good average will range around 2.6%. The higher your average CTR, the more successful your campaign.
What Is a Good Open Rate for Email Marketing?
Your email open rate is different from your CTR. Your CTR collects data from the interaction of the email. In comparison, the email open rate focuses on what happens before.
The open rate is precisely what it sounds like. It is the number of recipients who have opened your email. Your open rate will execute an equation to work out your average open rate. It takes how many people open your email and divides it by how many emails were sent. Again taking the bounce emails into account.
Once the program has finished, you will receive your average open rate. This average will be higher than your CTR. A good average will be between 15-25%.
How Often Should You Email Customers and Prospects?
The regularity of your email campaigns is a huge question. Unfortunately, there isn’t a simple answer. This all depends on what you are looking for and where you are looking.
The first thing you should do is email each new subscriber with a welcoming greetings email. This can cover a bit of information on your business and potential social media links for them to look at. After this email, the regularity gets a bit hazy.
If you are starting your email marketing journey, you may wish to start small. Begin emailing your subscribers with a more informative email once a month. This allows them to learn more about what you are marketing and what they should expect from you in the future.
If you have naturally grown your emailing list, you have gone out and networked your way to a decent-sized list. If you start emailing them 3-4 times a day, you will see an increase in unsubscribes. You have put in all that work to grow your list, don’t let this be why you lose it.
If you have paid for your email list, you will have the addresses of people who have opted for this email style. This doesn’t mean you can overly message them. Even though they signed up for it, they can still unsubscribe.
Once you complete your first few months with your list, slowly increase the regularity. This way, you can become a familiar name in their inbox without them being overwhelmed.
Working out how often you should send emails will be different for each business. Begin by testing the waters with your list. If you see an increase with unsubscribers, take it back slightly. Find your perfect level and stick with it.
You Have Improved Your Email Marketing Cost Know-How
Now you have a rough idea of the average email marketing cost. Make sure you can afford what you decide to use. Hopefully, your ROI will skyrocket.
Find a suitable method of creating your subscriber list for you. Use the perfect software for managing these inbound additions. Use the best company to help with your campaigns. Aim for the best CTR and open rate.
Finding the right people for your subscriber list can be lengthy. By using our services, we will do that work for you. Contact us with your business requirements, and we will find your connections.
Email Marketing Sample Costs
Email Subscription-based services are by far less costly. Most email marketing companies require a monthly or annual fee, but the price varies based on requirements and the amount of email addresses the service needs to manage.
For $15 per month, you can purchase a subscription service that will manage up to 500 email contacts.
If you invest $28 per month the email service will allow you to manage up to 1,000 contacts.
For $545 per year, the service will manage around 5,000 email addresses.
If you spend $1,900 or more per year, most email subscription services will allow upwards of 25,000 -50,000 email contacts.
Typical Considerations: Import Contact Features, Removal of Unsubscribed, Group Email Contacts, Detect and Remove Duplicate Contacts, Require Opt-In, Social Media Tools, Demographics Segmentation, Add Images, and Hyper Links, Templates, Surveys, Mobile Friendliness, A/B Testing
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