How Much Does Email Marketing Cost? Software, Agency, and DIY Pricing

What factors impact the cost of email marketing?

Email marketing is an essential part of any digital marketing strategy. And certainly, there can be more than one way to make the strategy work — that goes for every element, including the pricing. By the way, here are some great tips for email marketing.

And like any other parameter, the cost associated with email marketing can vary greatly depending on a variety of factors. 

So what impacts the cost? 

The software you use

There are many email marketing software providers available, and the cost can range from free to several hundred dollars per month, depending on the features and services you need, as well as the number of your contacts. 

Email marketing software providers usually charge per campaign, per email volume, or through a monthly subscription.

There are several pricing models, so it’s worth taking a closer look at email marketing software pricing.

A monthly fee is not always a fixed price — it could vary depending on the number of tools and services you want to utilize, so basically it works much like your Netflix subscription. For instance, the cost of Selzy packages varies from a free plan and up to $15 for the same number of contacts — of course, functionality is very different. The top-of-the-line option includes tailored end-to-end management service and unlimited options, while the $7 plan covers just the basics.

Another case would be cost per email pricing option. This pricing model can work in several ways: for instance, using Selzy you can go with monthly or yearly packages or choose to be charged per email. This is a good way to start and test your email campaign, while you compare other services

The number of emails you send per month impacts the cost of your email marketing directly. Most email marketing software providers charge you based on the number of emails sent monthly or weekly.

If you are expanding your email list or building a new one, consider its growth when planning budgets for email marketing. Say, you are now at 1,000 contacts and paying per email, while you plan to increase the base to 10,000 and use automated email sequences. In that case, a fixed plan may be more cost-effective.

The complexity of your email design

The complexity of your emails’ design can also impact the cost of email marketing. If you choose to create custom email design templates for your content, it can be more expensive than using a pre-designed template by an email service provider. For instance, a typical freelance email design offer on Fiverr costs around $30-40.

Selzy offers plenty of pre-made email templates for you to use in a simple drag-and-drop email builder, and it is included in the basic plan already.

Additionally, if you use stock images or purchase images from a stock image website, this can also increase the total cost.

This also goes for the content you are using: you can recruit specialized agencies or authors to create tailored content for each scenario or you can go with your own content resources. For instance, offers on Fiverr typically start at $20 and could go up to $300 or even more.

Features

The services and features you require can also impact the cost of your email marketing. For example, if you need advanced segmentation and automation features, this may increase the pricing of your email marketing software. Each add-on can provide more insight or functionality, but it may increase your monthly cost. Check the detailed breakdown of possible costs for different Selzy plans. 

The quality and size of your email list

The quality of the email list affects open rates, click-through rates, conversions, and overall ROI.

Imagine you are presenting a scientific discovery in a room of people who came for a stand-up show — chances are you won’t be taken seriously. Even if you have the perfect message, the outdated and irrelevant email list won’t allow you to be heard.

If you have a large email list, it is one thing. But if your email list is obsolete or not relevant, you (or your agency) may need to invest in additional tools or services to improve the quality of your list. Selzy has a tool for updating the contact list — go check it out.

This mostly is about the accuracy, relevance, and engagement level of the email subscribers on your list. A high-quality email list contains email addresses that are accurate, up-to-date, and relevant to the specific audience and purpose of the email campaign. 

Make sure the email contacts on your list have opted in and consented to receive your emails. The engagement level of the email list can be measured by open rates, click-through rates, and conversion rates, which indicate the level of interest and responsiveness of the audience. In summary, a high-quality email list is one that contains accurate, relevant, and engaged email addresses that have opted-in to receive emails from the sender. This is why it directly impacts cost efficiency — and therefore needs investments.

Additional costs associated with the email marketing

In addition to the factors discussed above, there are also other costs associated with email marketing that you should consider. 

Cost of management

If you choose to work with an email marketing agency, this can also increase the cost. Agencies typically charge a percentage of your email marketing spend with a flat minimum fee. An agency can make email marketing easier to manage, but it adds to your costs

Alternatively, this could be done by a freelance specialist, which could cost less, or your company’s employee. Of course, in the case of the latter, you should evaluate the workload: the time of your employee is an asset too.

Selzy offers the campaign management feature starting from $600, while prices for other services vary.

Campaign-related costs

There may be additional costs associated with specific email marketing campaigns. For example, if you are running a contest or promotion, there may be costs associated with prizes or incentives, or some additional creative, technical, or promotional services. This could also be some kind of co-promo where you are making a discount for other brand’s customers.

Lead nurturing and drip email marketing costs

Lead nurturing campaigns are meant to nurture the relationship between the prospect and the brand. It is a tool to “promote” a lead to a customer.

If you are using lead nurturing campaigns, there may be additional costs associated with lead generation tools and services.

This could also include data management costs. For a lead-nurturing campaign, it is crucial to maintain an accurate and up-to-date email list: it requires list cleaning services or email verification tools, as well as A/B testing software or analytics tools.

Drip email campaigns are an automated way to send emails to your customers or subscribers at predetermined intervals. This is a highly effective email marketing strategy, but it can also be more expensive, requiring additional services.

They could be included in the ESP package (like in Selzy’s plan), but in any case usually require more setup and testing time.

The best way to wrap your head around it is to treat it like multiple consecutive emails or email campaigns.

These costs could be included in your ESP fee (for instance, Selzy plans include A/B testing and email list checking tools), otherwise, they would add up to your total email marketing cost. 

Email lists building or purchasing

If you need to purchase lists of emails, this can also add to the cost of your email marketing. However, it usually is a bad idea, and your effort would be definitely more valuable in building a decent email list of contacts that will work for you. 

Building a list takes time and effort. This would also require subscription forms — which are provided by specialized services. For instance, an unbranded Optimonk widget would cost you $39 a month. Alternatively, this could be a part of a regular plan, like in Selzy.

Whatever you decide, it is a cost to include in your budget.

So, how much does email marketing cost overall?

The cost of email marketing can vary greatly depending on all of the factors discussed above, and whether you use an agency or not. Businesses can expect to spend between a few dollars and a few hundred dollars per month on emails. However, it’s important to remember that the cost can be higher or lower depending on the number of contacts in your email list and the tools and services you require.

What makes email marketing worth paying for

Despite the potential costs for the services and templates, email marketing is definitely worth investing in for many businesses. It allows you to stay in contact with your audience and communicate more personally than many other marketing channels. You can segment your email list and send targeted messages to specific groups of people. Additionally, email marketing can be a highly effective way to drive conversions and sales. 

For small businesses, email marketing can support both customer retention and acquisition. Check some email marketing for small businesses now!

In terms of the return on investment (ROI), email marketing is one of the few remaining owned media channels. Overall, it could vary depending on the industry and a lot of other factors. Litmus’s study shows that it could be as high as 36 (meaning email marketing generates $36 in profits for every dollar), growing year to year. And that is huge!

How to measure your email marketing ROI

To determine if your email marketing efforts are worth the cost, first of all you need to measure your return on investment (ROI) for your brand: a ratio of your email marketing costs to the profit it generates. 

One limitation is reach: your audience is limited by the size of your email list, unlike in social media or ad platforms, where you can get as massive in terms of your share of voice (SOV) as you like, usually being limited merely by your budget. 

To have a better idea of the effectiveness of your campaigns, your brand should track metrics such as open rates, click-through rates, conversion rates, and revenue generated. By analyzing these metrics, you can determine the effectiveness of your email marketing campaigns. 

Final thoughts

Let’s try to sum up the cost for the monthly campaign using the example: 

Jeremy has a flower shop and he wants to use email marketing to increase the number of returning customers. He has a customer base of 1,000 people and he’s planning his monthly budget.

1. ESP: Jeremy decides to go with Selzy’s standard monthly plan for $11. He doesn’t have more than 1,000 contacts and he’d like to use some features like A/B testing and Email quality checker — he wants to make sure not to hit any spam filters.
2. Design: he does not want to go too far and utilizes his existing templates, using his ESP plan. 
3. Email marketing agency: Jeremy decides to manage the campaign himself, so there is no agency cost.
4. Campaign-related cost: oh, Jeremy does want to set up a contest for engagement, using $20 worth of flowers.
5. Lead nurturing: no, Jeremy is good without it, at least for the moment.
6. Drip marketing: probably some other time, too.
7. Email list building: Jeremy learned that buying the email list is probably not the best idea. But he decided to increase his base anyway and give a small discount to people who would subscribe. He calculated that this would be $100 for him this month for growing his email list as high as 1,000 contacts.
   
   Which means that the total = $131.

FAQ about the cost of email marketing

How much does email marketing cost per month?

Email marketing can cost anywhere from $0 to several thousand dollars per month, depending on how you manage it. A small business using an email marketing platform can often start with a free plan or pay around $10-$100 per month. If you hire a freelancer or agency, the cost can increase to hundreds or thousands of dollars per month, depending on the scope of work.

How much does email marketing software cost?

Email marketing software usually costs $0-$100 per month for small lists, though prices increase as your contact list grows or you need more advanced features. Many platforms offer free plans with limits on contacts, emails, or functionality. Paid plans usually depend on the number of subscribers, monthly email volume, automation features, analytics, and support level.

What is the cheapest way to start email marketing?

The cheapest way to start is to use a free or low-cost email marketing platform, choose built-in templates instead of custom design, and build your email list organically through signup forms, website popups, lead magnets, or checkout opt-ins. This keeps upfront costs low while you test whether email marketing works for your business.

How much does an email marketing agency cost?

An email marketing agency can cost from a few hundred dollars to several thousand dollars per month. Basic campaign management may start around $500-$1,000 per month, while full-service email marketing with strategy, design, copywriting, automation, testing, and reporting can cost $2,500-$10,000+ per month.

Is email marketing cheaper than social media ads?

Email marketing is often cheaper in the long run because you communicate with an audience you already own: your subscriber list. With social media ads, you usually pay each time you want to reach people. However, email marketing still has costs, including software, content creation, design, list growth, and campaign management.

Is email marketing worth the cost?

Yes, email marketing is often worth the cost because it can support repeat sales, customer retention, lead nurturing, and direct communication with subscribers. Its ROI depends on the quality of your email list, your offer, your content, and how well you segment and personalize campaigns. To understand whether it pays off for your business, track revenue, conversions, click-through rates, and total campaign costs.