Email marketing is a strategy that uses email outreach to promote products or services, find new customers, share news about a business, and more. It’s a way for companies to reach out to regular and new clients with the goal of promoting their brand and spreading the word.
However, the main reason why some businesses aren’t already on board the email marketing train is the expenses. That’s why our team of experts devised this simple guide where we detail every email marketing cost. Let’s first start with the factors that influence the price and then go over the general email marketing cost before diving into the cost breakdown.
Table of Contents
- What Are the Factors That Determine the Email Marketing Cost?
- How Much Does Email Marketing Cost Per Month?
- How Much Does Working With an Email Marketing Agency Cost?
- Cost of Email Marketing Service Types
- How To Calculate the ROI for an Email Marketing Campaign
- How To Save Money on the Cost of Email Marketing Services
- What Can an Email Marketing Agency Do for Your Business
- Best Email Marketing Agencies To Work With
- Final Words on Email Marketing Costs & Best Practices
- Email Marketing Cost FAQs
What Are the Factors That Determine the Email Marketing Cost?
By 2027, there will be roughly 4.89 million email users in the world. So, starting with email marketing is a great way to boost your brand.
Before we detail the main costs of email marketing, let’s go over the factors that drive up your email marketing budget. Here’s what you should be on the lookout for:
1. Email Marketing Software
A factor that influences the cost of email marketing is the software. There are hundreds of options online, each with a different price. Some charge based on the number of subscribers, while others have a flat fee. Usually, email software providers offer a free version or at least a trial period to check out the available features.
2. Number of Subscribers
The cost of email marketing also depends on how big your email list is. Some email service providers charge based on the number of subscribers. The more subscribers you have, the more expensive it will be. The main reason for this is because it requires more resources to send emails to a larger group of people.
3. Email Design
The email design is another factor that can influence your email marketing cost. Some platforms offer a variety of templates, either from their in-house team or outsourced sources. Others might limit you to only in-house designs by their team.
If you’re looking for a custom design, some platforms offer this service, though it may come with an extra cost — usually around $2,000 per design, depending on its quality.
4. Volume of Emails
The number of emails you plan on sending is another thing that will affect the price. While some providers charge a flat fee, the majority will offer different packages with varying limits. You can choose plans that range from 1,000 to 20,000 emails per month or opt for an unlimited package.
5. Email Frequency
How frequently you send out emails can also influence the pricing. If you send out daily or weekly emails, then the costs will surely be higher. But if you’re more of a “holiday freebies” type of email sender, then you can save up on costs.
How Much Does Email Marketing Cost Per Month?
Overall, the email marketing cost typically ranges from $51 - $1,500 per month, depending on various factors such as the provider you choose, whether you fully outsource email marketing tasks to an agency, and the features needed from the email marketing software.
According to a WebFX survey, 41% of businesses manage their email marketing in-house using a paid platform, while 23% entirely outsource it to an agency.
Email Marketing Campaign Cost
If you want to run an email marketing campaign, you could pay a marketing agency anywhere from $15 – $100+ per hour. Another option is to hire a freelancer through Upwork or Fiverr. For this, you can expect to pay between $3 and $20+ per email sent through their platform. This would vary depending on whether they send out one or multiple campaigns over time.
| Email Marketing Campaign Distributer | Cost |
| Marketing Agency | $15 - $100 per hour |
| Freelancers | $3 - $20 per email |
The type of campaign you run depends on your goals and the time you can commit. Some types of campaigns you can consider:
- Pitching new products: Creating a marketing campaign for a new product.
- Re-engaging subscribers: Making an email to re-engage subscribers who have not purchased from you in a while. You can create email templates tailored to specific segments of your subscribers and send them during certain events.
- Selling Existing Products: Creating an email campaign to sell existing products requires you to segment your subscriber list and create different email templates for each segment. The more tailored your emails are to your subscribers, the more likely they will engage.
Email Design Cost
Designing an email can range from $25 – $150+ per hour.
As we mentioned, one of the key factors that influence the overall price of email marketing is the design of the email. Many elements go into the design, from color to size and font. It's imperative to have a well-designed campaign so that the content can be read and understood easily.
Designing an email can range from $25 – $150+ per hour. It depends on who you work with, the level of detail expected in the design, and what type of design you’re looking for. Generally, you can ask for two kinds:
- Coding-only design: The agency creates an HTML code according to your specifications.
- Coding and design: The agency will not only create the HTML code but also the template for your email which you can then copy-paste to your email.
Email Copywriting Cost
The average price of an email copywriting campaign runs anywhere from $35 per email to $2,000 per email.
Email copywriting refers to the text you include in your email that connects you with your customers. This is why having a strong copy is crucial.
The average price of an email copywriting campaign runs anywhere from $35 per email to $2,000 per email. The cost will depend on several factors:
- Length and complexity of the content
- Number and type of messages (welcome, offers, launches, surveys, email newsletters, etc.)
- Length of time
- Copywriter or agency’s expertise
How Much Does Working With an Email Marketing Agency Cost?
Working with an email marketing agency can cost anywhere from $25 to $1,000. The range varies depending on the agency’s expertise, the services offered, and the package you choose.
Most marketing agencies give clients the chance to choose between several packages, each with a different email volume and subscriber list size. They may offer free trials or limited free packages, with add-ons available for extra fees, such as increasing your monthly email limit.
For example, a basic ESP typically lets you create an email list, send campaigns, and track your results. On the other hand, a premium ESP gives you more advanced features, such as ESP automation, personalized email segmentation, and more.
Email marketing agencies typically bill on a monthly basis or give a yearly discount. Here are some platforms to consider, along with their lowest and highest pricing plans:
| Email Tool | Monthly Price |
| MailChimp | $0 - $350 |
| Constant Contact | $12 - $80 |
| Brevo | $0 - $18 + custom plan |
| ActiveCampaign | $15 - $145 (for 1,000 contacts) |
Each of these companies offers different advantages, but they all provide the same basic functions:
- Send emails directly to your customers
- Track their activity over time
- Create landing pages that drive traffic back to your website and more
Cost of Email Marketing Service Types
Email marketing can involve various service options depending on your budget and needs:
- Free email marketing service: If you have a minimal budget, you can use a free email marketing service to run your campaign. Using a free email marketing service has limitations, so consider switching and investing in a paid service once your business has grown.
- In-house email marketing: Getting an in-house email marketing team is a long-term strategy and will require hiring an email marketing specialist and investing in the right software.
- Outsourced email marketing: For businesses with a moderate budget, outsourcing your email marketing campaign is an effective way to ensure its success.
Here’s a table with the costs of each type:
| Email Marketing Service | Cost |
| Free Email Marketing Service | $0 |
| In-house Email Marketing | $2,500+ per month |
| Outsourced Email Marketing | $300 - $12,000 per month |
How To Calculate the ROI for an Email Marketing Campaign
To determine if your email marketing costs were worth it, calculate the return on investment (ROI). The ROI is calculated with this formula:
ROI = (Final value - initial value) / costs x 100%
The final value is the profit generated by your email marketing campaign. On the other hand, the initial value is the budget you've allocated, which includes all email marketing expenses.
Let’s say you’re paying an ESP $100/month. In a year, that would be $1,200. If you have an in-house marketer specifically dedicated to emails, whom you pay $20 an hour for 2 hours per day, 5 days a week, that will amount to $200 per week or $10,400 per year. Together, these make your total initial cost $11,600.
If you make $300 in leads a year for $100 cost per lead, that will make the final value $30,000. So, your ROI would look like this:
ROI = (30,000 - $11,600) / $11,600 x 100 = 158.6%
How To Save Money on the Cost of Email Marketing Services
To help you find a balance between cost and effectiveness, here are some email marketing tips:
- Use a free email service: Gmail and Outlook are good options for some of your emails. You can divide your email efforts — half can go through an ESP and half through a free email service.
- Use an email template that's been tested for open rates and click-throughs: This can be found in any primary email services provider like Mailchimp or Campaign Monitor, or you can use a tool like Canva to make your template from scratch.
- Send only one email per week: If you’re really on a budget or just starting, sending one email per week can be enough. Ensure it's full of helpful information that customers will want to read. Later on, you can increase the number.
- Build your email subscriber list: It's hard to save money if you don't have a good list of subscribers. You can't just run an ad campaign and hope people will join your mailing list. You need to build relationships with people over time, so they'll want to sign up for your emails.
- Test different subject lines and send times. There’s no one-size-fits-all for every audience. So, we advise you to try out different subject lines and send times for different segments of your audience to reach them when they’re most likely on their devices.
What Can an Email Marketing Agency Do for Your Business
If you are just starting and don’t want to spend a lot of money on different email marketing services and features, hiring an agency can be a practical choice. Here are a few reasons why you should consider it:
1. Reach Your Target Audience
A good email marketing agency will know how to reach your target audience the best way. They will use different email marketing best practices to ensure that your emails reach your clients.
You can send out a list to your audience yourself or allow the email marketing agency to do it for you. They can segment the list and target specific clients with certain emails.
2. Develop Compelling Content
An email marketing agency will also create the content in the email. As we mentioned, content is key to connecting with your target audience and making your customers want to purchase your product. Having a good copy means the agency works with in-house or outsourced copywriters who put in the effort to create compelling emails.
These writers will also create compelling subject lines as part of your content. In email marketing, a subject line is the first thing the customer sees that will make them want to click on your email.
Finally, they can also create a captivating call to action (CTA). A CTA needs to be clear and easy to understand and should lead customers to a landing page or website where they can learn more about your product or service.
3. Automate the Email Process
An email marketing agency can also help automate the email process. You won’t have to send out the emails yourself every day or week or come up with different segments for every product. Instead, the agency’s software will schedule the email sending, so you can focus on other important tasks.
4. Increase ROI
By working with an email marketing agency, you can also generate better ROI. Since you don’t have to worry about sending out emails, you can focus on improving your products and services. This will inevitably lead to better returns.
Best Email Marketing Agencies To Work With
If partnering with an email marketing agency sounds like the right step for you, here are some of the best agencies to work with:
1. Digital Success
- Location: 5830 Granite Pkwy, Suite #100-360, Plano, Texas 75024, United States
- Average Hourly Rate: $35
- Expertise: Digital Marketing, SEO, Social Media Marketing, Web Design, etc.
Digital Success is a full-service agency that delivers various digital marketing services, ranging from SEO and content to email campaigns. It is among the top agencies for small and mid-sized businesses in Dallas, Texas.
The agency develops specialized campaigns for every client, with the aim of optimizing spending and resources. Its strategies and tools allow precise targeting of the right consumers and drive digital success for the business.
Digital Success has catered to businesses across industries, including healthcare, legal, automobile, and finance.
2. HomeTree Digital
- Location: 1 W End Avenue, Suite 18B, New York City, New York 10023, United States
- Average Hourly Rate: $150
- Expertise: Email Marketing, Social Media Marketing, Digital Marketing, Software Development, etc.
Based in New York City, HomeTree Digital is a digital marketing agency that specializes in the financial service industry. The agency works as a brand’s creative partner in designing the best digital experiences and customer journeys that drive results.
In email marketing, it helps clients with personalized distribution and advanced reporting. The agency is also experienced in tools like MailChimp, HubSpot, Marketing Cloud, and more.
Aside from digital marketing, HomeTree Digital also offers software development, web design, brand identity, and video production.
3. Kode Digital
- Location: 353-3 Jalan C Y Choy, 10300 Georgetown, Penang, Malaysia., Penang, 10300, Malaysia
- Average Hourly Rate: $40
- Expertise: 360° Digital Services, Digital Strategy, Branding, Graphic Design, Media Buying, Web Design, eCommerce Development, Website Development, Digital Marketing, Legal Digital Marketing, SEO, Google AdWords, and Social Media Marketing.
Kode Digital is an established digital agency based in Malaysia. Founded in 2018, it provides creative and innovative 360° digital solutions to help companies reach their goals. Its services range from digital strategy to email marketing and everything in between.
The agency strives to provide clients with tailored services that can meet their individual needs. Its team comprises passionate creatives and professionals with years of experience in the field and strives to deliver exceptional results.
Some of Kode Digital’s most notable clients include Nomura Asset Management Malaysia, De. Wan 1958 by Chef Wan, and Buddhist Tzu Chi Merits Society Malaysia.
4. Launch Marketing
- Location: 4810 Spicewood Springs Road Suite 250, Austin, Texas 78759, United States
- Average Hourly Rate: Inquire
- Expertise: Branding, Video Production, Package Design, Web Design, Digital Marketing and Healthcare Digital Marketing
Launch Marketing is an Austin, TX-based, full-service B2B tech marketing firm founded in 2001. It has carved out a unique space in the Austin tech scene by offering senior-level expertise and providing turnkey solutions to help B2B technology companies maximize their brand impact.
Launch Marketing's comprehensive suite of services includes branding, video production, package design, email marketing, web design, digital marketing, and healthcare digital marketing.
Launch Marketing helps its clients to achieve success through creative and effective marketing strategies that reach the right audiences, resulting in increased brand awareness and higher returns on investment. Some of the agency’s most notable clients include thinaer, Arena Solutions, and Global Agility.
5. Laconic World
- Location: 444, 445 - Nexus 2, Nadiad, 387001, India
- Average Hourly Rate: $15
- Expertise: Video Production, Web Design, Website Development, UI/UX Design, Digital Marketing, SEO, and Data Entry
Laconic World is a full-service digital marketing, website design, and development agency based in India and was first established in 2018. It focuses on helping brands grow and reach their full potential with innovative ideas, cutting-edge technologies, and data-driven strategies.
At Laconic World, the success of its clients takes priority over all else. Whether you need help driving traffic to your website or increasing your ROI, Laconic World has the expertise and experience needed to get results. It offers services such as email marketing, video production, web design, website development, UI/UX design, digital marketing, SEO, and data entry.
Its client base includes Pet Lovers Centre Singapore, FactoryWorx, and Camelot Infant Care.
6. DS&P
- Location: 605 N. Michigan Ave, 4th Floor, Chicago, Illinois 60611, United States
- Average Hourly Rate: Inquire
- Expertise: Email Marketing, Mobile App Development, Digital Marketing, SEO, PPC, etc.
DS&P is a full-fledged digital marketing agency that was founded in 2009 in South Fort Worth, Texas. Today it has offices throughout the U.S. and clients worldwide. Its team, which consists of designers, strategists, entrepreneurs, and marketing geniuses, is at its clients' disposal.
The agency can also promote any business in all digital formats. Why hire five different agencies when you can have all your digital marketing needs filled under one roof?
Clients include Nelson Propane, Esteem Dental, VastMed, etc.
7. KPI Media
- Location: 138 Robinson Road Oxley Tower, #15-04., Singapore, 068906, Singapore
- Average Hourly Rate: Inquire
- Expertise: Marketing Analytics & Big Data, SEO, PPC, Social Media Marketing, etc.
KPI Media is a marketing agency based in Singapore, specializing in helping start-ups achieve scale and business growth. It provides brand advertising solutions such as search engine marketing, email marketing, social media advertising, marketing automation and analytics, and programmatic advertising.
The agency is currently partnering with brands such as Microsoft and Google. In addition to winning the bronze award for New Kid on the Block at MARKETING-INTERACTIVE's AOTY Awards 2021, it was also a finalist for the Specialist Agency of the Year award.
Final Words on Email Marketing Costs & Best Practices
The costs of email marketing mainly depend on factors like email volume, frequency, and subscriber list size. You can calculate the projected costs before you choose a software provider or a package, and then calculate the ROI to see if the effort has paid off.
Alternatively, you can always hire an email marketing agency to help you come up with a highly effective email marketing strategy and drive more traffic to your business.
Email Marketing Cost FAQs
1. Are there any hidden costs of email marketing?
While email marketing is generally considered a cost-effective marketing strategy, hidden costs can be associated with it. For instance, you may need to invest in email list cleaning services or verification tools to ensure your email list is accurate and up to date. You may also need a designer or copywriter to create engaging email content.
2. What are the pros and cons of outsourcing email marketing?
Some pros of outsourcing your email marketing include access to experienced professionals, increased efficiency, and better results. However, there are also cons to offloading your email marketing. Some of them are the higher costs, less control, and lack of knowledge of your business.
3. Is email marketing cost-effective?
Email marketing can be highly cost-effective compared to other advertising forms, such as print, TV, or radio. With email marketing, you can reach a large audience at a relatively low cost and track and measure your campaigns' effectiveness.
Also, you can target specific audience segments with personalized messaging, which may result in higher conversion rates and ROI.
4. Is email marketing less expensive than direct mail marketing?
Yes, email marketing prices are generally lower than direct mail marketing. With direct mail, you must pay for printing, postage, and other associated costs, which can add up quickly. On the other hand, with email marketing, you can reach a large audience at a fraction of the cost and track and measure your campaigns' results in real time.
5. Is in-house email marketing cheaper than outsourcing it to an agency?
There really isn’t a one-size-fits-all solution for email marketing. For some companies, in-house email marketing might be more expensive, considering the costs of hiring new employees, training them, paying for their salaries, etc. Other more experienced businesses will find that building an in-house email marketing department is way cheaper.
6. How much do businesses pay for email marketing?
It depends on the platform they use, whether they’re outsourcing or using software in their in-house marketing department, the features they want, and more. On average, businesses pay between $51 - $1,500 per month.
7. How much of your budget should go to email marketing?
If you have a full marketing strategy, then email marketing should be a part of it. In percentage, it’s best to set aside at least 10% of your marketing budget for email marketing. Using more or less than 10% will depend on how you structure your overall advertising efforts.
