If you’re an entrepreneur who’s exploring email marketing, you might feel the pinch of marketing costs, especially if you’re just starting out. 

Many businesses struggle to balance their email marketing agency budget while still wanting to run effective email campaigns. If you’ve ever wondered how to reduce email marketing costs without hurting your business, you’re not alone.

Luckily, it is possible to save money on email marketing so that you do not blow your budget before reaching your target audience. 

In this blog, we’ll provide a clear strategy to identify which email marketing costs you can trim from your budget. We’ll also offer practical, cost-effective alternatives to help you maintain effective email marketing campaigns. Whether you’re working with an agency or managing things in-house, we have solutions that keep your email marketing budget in check while delivering great results. Let’s get started. 

How Much Does Email Marketing Cost You in 2024?

In 2024, the cost of email marketing can differ significantly based on how you manage it. According to the WebFX study, here’s a breakdown of typical costs of email marketing:

Email Marketing Agency Services: Working with an email marketing agency usually costs between $51 and $500 per month. This depends on the agency’s reputation and the complexity of your email campaigns. Agencies offer various services, so your cost can vary based on what you need.

In-House Email Marketing: If you’re managing email marketing in-house with a paid platform or tool, expect to pay between $751 and $1,000 monthly. The higher cost reflects the price of the software and the features you’re using. 

Freelancers: Hiring a freelancer usually costs between $51 and $100 monthly. The price depends on the freelancer’s experience and what they’re offering.  According to Design Rush, if you hire a freelancer through Upwork or Fiverr, the cost per email can range from $3 to $20, depending on their experience and the quality of work.

According to Flowium, here’s a simple breakdown of what email marketing agencies typically charge in the US:

• Per Email: Expect to pay between $250 and $700 per email.
• Hourly Rates: Newer agencies might charge $120 to $250 per hour for their work or consultation.
• Project Setup: The cost can range from $3,000 to $6,000 for a full project setup.
• Retainer Services: Monthly retainers start around $2,500 for ten emails and can go up to $7,500 for 10 to 15 emails.

These are general ranges, but the exact cost of email marketing can vary widely based on several factors unique to your brand. Let’s explore what determines these costs.

What Are the Factors That Determine Email Marketing Costs?

Several external and internal factors influence how much your email marketing agency charges you:

• Number of Subscribers: Larger lists increase costs due to higher resource needs.
• Email Marketing Software: Advanced tools for frequent emailing are pricier.
• Features: Costs vary based on the features and templates your platform offers.
• Annual Revenue: Higher revenue often means more robust solutions are needed.
• Industry: Industries like retail and travel usually face higher email marketing costs.
• Products or Services: Extensive support or special requirements can raise costs.
• Marketing Goals: Targeted campaigns and specific goals often require more investment.
• Campaign Frequency: More frequent emails mean higher planning and execution costs.
• Location: The agency’s location can impact pricing. Agencies in major cities with higher living costs may charge more than those in smaller towns or remote areas.
• Service Range: Comprehensive services like consulting, list management, and design typically cost more, while limited services like campaign execution can be cheaper.
• List Size: The size of the email list impacts email marketing pricing. Larger lists often require more resources to manage and send out campaigns, which can increase the overall email marketing cost.
• Additional Costs: Some agencies may charge additional fees for services such as email template design, email copywriting, email automation, or email verification. These extra services can impact pricing.

How To Trim Email Marketing Agency Costs Without Hurting Your Business?

While partnering with an email marketing agency offers valuable expertise, it’s essential to optimize your investment. Here are some strategies to reduce costs without compromising email campaign effectiveness:

1. Negotiate Better Rates

Don’t be afraid to have a conversation about cost! Here are some tactics to secure a more budget-friendly partnership with your email marketing agency:

Review Your Current Services: Analyze your current agency package. Are there elements you no longer need, or can you streamline them? Discuss scaling back services to better align with your current budget.

Highlight Your Value: If your business has grown or your email list has expanded, use this leverage. Explain the increased value you bring to the agency and negotiate for a more favorable rate.

Compare Rates: Research industry averages and competitor pricing. Armed with this information, you can present a case for a more competitive rate.

Volume Discounts: If you anticipate a significant increase in campaign volume, explore volume discounts with your agency.

Opt for Basic Packages: For lower costs, choose the most basic email marketing service packages or opt out of some services.

Long-Term Agreements: Consider a longer contract term in exchange for a reduced rate. This can benefit both parties by ensuring stability and streamlining workflows.

2. Optimize Service Packages 

Tailoring service packages to your specific needs is another effective way to cut email marketing agency costs.

Focus On The Core: Evaluate which services are essential for your business and which you can do without. For instance, if your team can handle content creation or basic design tasks, you might not need the agency to provide these services.

Cost-effective Alternatives: Some agencies offer modular packages that let you pick and choose the services you need rather than paying for a full suite. This can significantly reduce your expenses.

Phased Approach: Consider gradually reducing services over time as your team gains expertise. This allows for a smooth transition while controlling costs.

3. Build In-house Capabilities 

Bringing email marketing in-house can offer greater control and flexibility and potentially lower long-term email marketing agency costs.

First, assess your team’s capabilities. Do you have the necessary skills in-house? If not, consider hiring or training staff in email marketing, design, and data analysis. Remember, it’s often a gradual process. You can start by handling certain tasks in-house and gradually expanding your team’s responsibilities.

Choosing the right email marketing platform is crucial. Opt for a tool that aligns with your budget and offers your needed features. And don’t forget about training. Equip your team with the knowledge to maximize the platform’s potential.

Building an in-house team requires upfront investment, but the long-term benefits can be substantial. You’ll gain deeper insights into your audience, faster campaign turnaround times, and greater control over your marketing destiny.

4. Leverage Free or Affordable Tools To Cut Email Marketing Agency Costs 

While building an in-house team offers long-term cost savings, there are immediate steps you can take to reduce agency expenses. Consider exploring free tools and resources. Many brands overlook the power of free resources, but they can significantly reduce your reliance on expensive agency services. Here’s how you can do it:

Additionally, websites like Coursera, HubSpot Academy, and Google’s Digital Garage offer top-notch courses on email marketing. Equip your team with the skills they need to handle your campaigns in-house.

By leveraging these free tools, you can save money and gain more control and flexibility over email marketing. 

5. Clean Up Your Email List

One of the simplest yet often overlooked ways to cut email marketing costs is by maintaining a clean email list. Here’s how:

Delete inactive contacts. You might have built a solid email list over time, but not everyone is interested. These inactive subscribers can add up, especially since many email marketing platforms charge based on your list size. Plus, inactive contacts dilute your audience and hamper your sender reputation. 

Regularly deleting these inactive subscribers can significantly cut down on email marketing costs.

Start by identifying subscribers who haven’t opened or clicked on your emails for a certain period, like the last six months. Most email marketing tools have easy-to-use features to help you filter out these inactive contacts.

Before hitting the delete button, try sending a re-engagement email. This can be a simple message asking if they still want to receive your emails, offering them an easy way to unsubscribe if they’re no longer interested. It’s a friendly way to clean your list while showing you care about their preferences.

If they still don’t engage, it’s time to remove them. Regularly cleaning your list cuts email marketing costs and boosts your email performance. With a cleaner list, your open and click-through rates will likely improve, giving you a more accurate picture of how your emails are doing.

6. Offshore Outsourcing

Outsourcing email marketing tasks offshore can offer substantial cost savings. Businesses can stretch their budgets further by tapping into lower labor costs without compromising quality. 

Just be sure to pick reliable partners, set up clear communication to overcome language barriers and time zones, and ensure your data stays secure. 

While taking control of your email marketing can save money, it’s important to consider the full picture. Building an in-house team takes time, resources, and expertise—things not everyone has on hand. 

On the other hand, partnering with the best email marketing agency, despite the costs, can offer some real perks. Agencies come with a wealth of knowledge and resources that can take your email marketing to the next level. Let’s explore these benefits and see why investing in an email marketing agency might just be worth every penny.

Pros of Hiring an Email Marketing Agency

While building an in-house team offers control, it also demands significant time and resources. Partnering with an email marketing agency can provide several advantages:

• Expertise and Experience

Agencies have dedicated teams with in-depth knowledge of email marketing best practices, industry trends, and technological advancements.

• Specialized Skills

They offer a wide range of expertise, including copywriting, design, data analysis, and automation.

• Scalability

Agencies can quickly adapt to changes in your business or marketing goals.

• Time Savings

Outsourcing lets you focus on core business activities while the agency handles email marketing.

• Access to Technology

Many agencies utilize advanced email marketing platforms and tools that might be cost-prohibitive for in-house teams.

• Fresh Perspective

External agencies can bring new ideas and strategies to your email marketing campaigns.

Conclusion 

We hope these tips help you optimize email marketing practices and reduce costs. Even though email is a well-established channel, you can always find ways to maximize your efforts at a lower cost. Whether you choose DIY email marketing or hire an agency, plenty of strategies exist to save money while achieving great results.