How Much Does Email Marketing Cost?

Email marketing is one of the most powerful and cost-effective tools for businesses. With the ability to reach customers directly, nurture leads, and drive conversions, it remains a key component of digital marketing strategies. 

However, before investing in an email marketing campaign, it’s essential to understand the associated costs. Various factors influence pricing, and having a clear understanding of these elements ensures you make an informed decision that aligns with your budget and business goals.

Factors That Influence Email Marketing Costs

Email marketing costs can vary significantly depending on a business’s needs, strategy, and tools. From the platform you choose to the size of your subscriber list and the level of automation you implement, multiple factors affect pricing. Below, we break down the key elements that contribute to the overall cost of an email marketing campaign.

Email Service Providers (ESPs)

Choosing the right Email Service Provider (ESP) is crucial, as different platforms charge based on features, subscriber count, and email volume. Some of the most popular ESPs include Mailchimp, Constant Contact, and HubSpot, each offering various pricing models tailored to different business sizes and marketing needs.

Here’s how ESPs structure their pricing:

• Free Plans: Typically available for small businesses with limited contacts (e.g., Mailchimp offers a free plan for up to 500 contacts).
• Subscription Plans: Based on subscriber count and features, starting as low as $12–$18 per month but can reach up to $1,000+ per month.
• Advanced Plans: Include automation, analytics, and CRM integration, costing significantly more depending on the business size.

Subscriber List Size

The number of subscribers on your list plays a significant role in pricing. Most ESPs charge based on the size of your email list, with larger lists resulting in higher costs. 

Many providers offer affordable tiers for small businesses, typically accommodating up to 500 or 1,000 subscribers.

Factors to consider:

• The larger the email list, the more expensive the plan.
• Some ESPs offer volume discounts for very large lists.
• Cleaning and segmenting your list can help reduce unnecessary costs by removing inactive subscribers.

Email Frequency & Volume

The frequency at which emails are sent also impacts pricing. Businesses that send daily or weekly newsletters will incur higher costs compared to those that send occasional promotional emails. 

ESPs often structure their plans around the number of emails sent per month, with businesses needing higher allowances paying a premium for additional sends.

• Low Frequency (1-2 emails per month): Usually covered in basic plans.
• Moderate Frequency (weekly emails): Requires mid-tier pricing, which can range from $400–$100/month.
• High Frequency (daily emails or automated drip campaigns): Higher costs due to additional sending volume and automation tools.

Automation & Advanced Features

Advanced features such as automation, segmentation, A/B testing, and AI-driven personalisation can drive up the cost of email marketing. These tools help businesses send more targeted and effective campaigns, improving engagement rates but requiring higher-tiered plans.

Common advanced features that impact pricing include:

• Automation Workflows (e.g., welcome emails, abandoned cart emails).
• Segmentation & Personalisation (custom content for different audiences).
• A/B Testing & Analytics (optimising campaign performance).
• CRM Integrations (syncing with platforms like Salesforce or HubSpot).

Understanding Email Marketing Pricing Models

Once you understand the factors that influence costs, the next step is to explore the different pricing models used by ESPs. Most platforms offer a variety of plans to suit businesses of different sizes and marketing strategies.

Monthly Subscription Plans

Many ESPs operate on a subscription-based pricing model, where businesses pay a fixed monthly fee based on the number of subscribers and features they require.

For example:

• Mailchimp: Free for up to 500 contacts, with paid plans starting at $28/month.
• Constant Contact: Basic plan starts at $17/month, with increasing costs for more features.
• HubSpot: Premium plans start at $20/month, offering CRM integration and automation.

This model is ideal for businesses that consistently send emails and require a predictable cost structure.

Pay-as-You-Go Plans

For businesses that don’t send emails frequently, some ESPs offer pay-as-you-go plans. Instead of paying a monthly fee, users are charged based on the number of emails they send. 

This model is ideal for companies running seasonal campaigns or those with unpredictable email marketing needs.

Who benefits from pay-as-you-go pricing?

• Businesses with occasional promotions or seasonal campaigns.
• Companies that prefer cost control over fixed monthly fees.
• Startups that want to test email marketing before committing to a subscription.

Tiered Pricing Structures

Pricing also varies based on business size, with different plans tailored to small businesses, mid-sized companies, and large enterprises.

• Small Businesses: Typically pay $10–$50/month for basic features.
• Mid-Sized Companies: Require more automation and segmentation, costing around $100–$500/month.
• Enterprises: May spend thousands per month for full-scale email automation and analytics.

Additional Costs to Consider

Beyond the standard pricing models, businesses should account for potential extra expenses:

• Premium Email Templates: Professionally designed templates may come at an additional cost.
• Dedicated IP Addresses: Helps improve email deliverability but adds extra monthly fees.
• Email Verification Tools: Services that clean email lists to reduce bounce rates.
• E-commerce & CRM Integrations: Additional fees for connecting with Shopify, Salesforce, or other platforms.

Cost Comparison of Popular Email Marketing Platforms

To help businesses make an informed decision, here’s a breakdown of pricing for some of the most commonly used ESPs:

MailChimp Pricing Plan Breakdown

Known for its user-friendly interface and automation tools, MailChimp offers features such as audience segmentation, A/B testing, and pre-built templates to help businesses create effective email campaigns. 

MailChimp also integrates with various third-party apps, making it a versatile choice for businesses of all sizes.

• Premium Plan: $250/month (USD) for 10,000 contacts – ($364/month (CAD)
• Standard Plan: $20/month (USD) for 500 contacts – ($30/month (CAD)
• Essential Plan: $13/month (USD) for 500 contacts – ($19/month (CAD)
• Free Plan: $0/month limit of 500 contacts

Constant Contact Pricing Plan Breakdown

Constant Contact is a reliable email marketing service designed to help businesses build strong customer relationships. It provides tools for creating professional emails, managing contacts, and tracking campaign performance. Constant Contact also offers additional features like social media posting and event management, making it a great all-in-one marketing solution.

Interested in Constant Contact? Try it now and receive a 30% discount for 3 months.

• Premium Plan: $109/month (CAD)
• Standard Plan: $48/month (CAD)
• Lite Plan: $17/month (CAD)

• Premium Plan: $80/month (USD)
• Standard Plan: $35/month (USD)
• Lite Plan: $12/month (USD)

HubSpot Pricing Plan Breakdown for Enterprises and Individuals/Small Teams:

• Marketing Hub Professional: $1,034/month (CAD), includes 3 seats – ($712/month (USD)
• Marketing Enterprise Hub: $4,700/month (CAD), includes 5 seats – (3,232/month (USD)

• Free Plan: $0/month. Comes with limited tools
• Marketing Hub Starter: $20/month (CAD) – ($14/mont/seat USD)
• Starter Customer Platform: $20/month/seat (CAD) – ($14/month/seat USD)

The best choice depends on the size of your business, your marketing needs, and how much you’re willing to invest in automation and analytics.

Cost of Using an Email Marketing Agency

While many businesses handle email marketing in-house, some choose to work with an agency for expert guidance. Hiring an email marketing agency can provide benefits such as professional campaign management, strategy development, and performance optimization. However, the cost of agency services varies widely based on factors such as business size, email list size, and the level of customisation required.

Agency pricing structures may include:

• Flat monthly fees (ranging from $500–$5,000/month).
• Per-campaign pricing (ideal for businesses running occasional promotions).
• Performance-based fees (charged based on conversions or engagement rates).

Although outsourcing email marketing can be costly, it often results in higher engagement and return on investment due to professionally crafted strategies.

Start Email Marketing Today

Understanding the cost of email marketing requires evaluating multiple factors, from choosing the right ESP to deciding on a pricing model that fits your business needs. Whether you opt for a subscription plan, a pay-as-you-go model, or work with an agency, email marketing remains a highly effective tool for reaching customers and growing your brand.

To get started with a tailored email marketing strategy, contact us at IGV today. Our team of experts can help you choose the best platform, optimize your campaigns, and ensure you’re getting the best value for your investment in email marketing.