With an average ROI of $38.00 (sometimes even more), for every $1 spent, email marketing is definitely a worthwhile investment. Also, not to brag or anything, but our average ROI is 1,300%.
So you probably want to start doing email marketing for your brand. And of course, you want to know a bit more about email marketing agency pricing, right? Well, there are various email marketing packages, and they all have different price tags.
So let’s explore some of these email pricing options to find the one that’s right for you.
The price of email marketing - let's talk numbers
In general, email marketing agency pricing is pretty difficult to predict. There are a lot of factors involved. However, everything is usually is based on one simple model. How much you pay is based on how many emails you send and how many people you're sending them to. It works like this:
Low end of the scale - from $1,500 to $5000 P/M. This would normally include 3 or so workflows and an email around every 6 weeks. Of course, it also depends on how good your agency is, the amount of strategy involved and so on.
High end of the scale - from $7,000 to $14,000. This is for more complex CRM programs with up to 10 workflows, SMS, and push notifications. Once again, it also depends on your agency and the type of strategy work that's being done. And just remember, like any kind of effective marketing, this isn't an expense, it's an investment.
Sometimes, if your email marketing program is really demanding, an agency will assign a dedicated expert to your account.
What email marketing package do you need?
As email marketing experts who have been in the game for over a decade, we can tell you that every client is different. You might only need a couple of workflows, or you might need to communicate with clients twice a week. Maybe the goals you have to require a lot of strategic input and complex planning to reach or maybe they’re really simple. As well as strategy, you also have to budget for good design, content writing, campaign planning, maintenance, and coding.
Three Major Factors That Affect The Price Of Email Marketing
These three things will have the biggest impact on how much you pay for email marketing. The first is your subscriber base or email list. It’s simple, really – as I said earlier, the bigger your subscriber base, the more your Email Service Provider will charge you. That’s why it’s key to find an ESP with a flexible payment plan. Not sure where to start? Check out our blog posts on Klaviyo pricing and Klaviyo alternatives for more on this.
If you’re only sending a couple of emails a month, you don’t need to fork out loads of dollars. Also super important – delivery rates. Your ESP should offer a delivery rate of 98% or higher.
The kind of campaign you run will also have an impact. Are you just publishing a once-off email newsletter or various campaigns with multiple mails in each campaign? Plus, good design and well-crafted content will always cost you a little more – I’ll expand on this later.
What email marketing package is best?
This really depends on your industry and your email campaign strategy. According to a study conducted by MarketingSherpa, 61% percent of subscribers liked receiving a promotional email once a month. Interestingly though, 15% of users said they wouldn't mind receiving an email every day, while 91% said they had absolutely no problem with promotional emails. Although I have to say, the industry average/sweet spot here is normally once or twice a week. However, this is again dependent on your strategy, your workflows, and what you want to achieve.
Lastly, the quality of your subscribers is pretty important, too. If your contacts are inactive or bounced, you’re paying for absolute wasted space. This is why it’s so important to scrub your email list regularly.
Retainer or project fees?
A retainer is an ongoing contract with an agency, while a project fee is exactly that – a project-by-project billing system. So what are the pros and cons? Well, you may think a project fee is cheaper. Not really. Agencies charge more for single projects as they can be more internally disruptive and require more work in the long run.
With a retainer, you’re charged monthly for a set amount of hours. This will allow your email marketing agency to really get to know your brand and build a relationship with you and your team. And quite frankly, getting really amazing results from email marketing can take a little time. That's why a longer-term relationship is always more likely to give you the results you’re looking for. Check out this guide for more on how most email marketing agencies determine their fees.
Are email advertising services worth it?
Is the sky blue? Without a doubt, email marketing is worth it. In fact, it's probably one of the best investments you'll ever make - just ask any of our clients. Though here’s the thing; when you’re trying to find an email marketing agency, don’t think of it as a cost-cutting exercise. Of course, staying within your budget is important BUT you also need a fantastic strategy, beautiful designs and great content if you’re going to be successful.
These emails don’t just create themselves – lots of blood, sweat, effort, and tears go into every great email campaign. Workflows are carefully planned for the best results and rigorous reports are written to improve performance and smash every single goal. Well, if you have an amazing email marketing agency, that is.
And speaking of amazing agencies – are you ready to find out just how much value a fantastic email campaign can add to your business? I thought so. What do you say? Should we get started on that ROI?
