Email Marketing Agency Pricing 2023: What You Need to Know

How Much Email Marketing Costs in 2023?

Email marketing cost varies widely. 

If you want the short answer, we went through the blogs of the top email marketing agencies to determine their pricing and how much email marketing costs the average business. 

The aggregate data shows that mid-sized businesses typically spend up to $1000 monthly for self-managed email marketing (comprising the price for different tools and email marketing platforms) and $300-$2000 if they’re working with an agency.

The truth is that the cost of email marketing depends on various factors. These include the size of your email list, the type of email marketing software you use, the content you create, the email list management services you require, and more.

In this article, we’ll discuss how email marketing costs. We’ll bring up the different expenses involved in email marketing, how much you should allocate, and more. 

Note: Struggling to get replies or book meetings with prospects that fit in your ICP? We’ll help you get 6 SQLs or book 6 meetings with prospects that are ready to buy for only $999/month. Book a 15-minute consultation now.

How much does email marketing cost?

There is no one-size-fits-all answer to how much email marketing costs. Email marketing costs can vary depending on several factors, such as the size of your email list, the complexity of your campaigns, and the type of service you choose.

On average, businesses can expect to pay around $500-$2000 per month for a basic email marketing service that includes features such as email copywriting, list management, and campaign management and analytics.

If you have a larger email list, you may need to pay more to accommodate the increased volume of emails. Some agencies charge based on the number of emails sent, with prices ranging from $200 to $500 per email.

Some email service agencies have tools in-house that facilitate their work and help you get the most out of them. These tools can include features for automation, segmentation, and personalization. And for those services, prices can range from $2000 to $6000 monthly.

If you’re working with an email marketing service that combines tools and email marketing management services, prices can range from $2000 to $6000.

Note that email marketing service costs can also vary depending on the agency you choose. Some agencies may offer lower prices but fewer features, while others will charge more but provide more comprehensive services. So, always consider your budget and goals. 

One thing to keep in mind is that the potential ROI can offset the cost of email marketing. According to some industry statistics, email marketing can have an ROI of up to 3,800%, meaning that for every $1 spent on email marketing, businesses can see a return of $38.

While there is no guarantee that every email campaign will yield such a high ROI, the potential for significant returns is certainly there — which takes us to the next question.

How much of your budget should you allocate to email marketing?

The amount you should allocate to email marketing within your overall marketing budget is not one-size-fits-all, and it will depend on several factors.

Factors that influence your email marketing budget: 

  • Overall revenue generated online
  • Email revenue share in the annual revenue
  • The size of your email list
  • The standards of the email marketing agency you want to work with
  • Your industry
  • The product/service you sell
  • Your overall digital marketing and business goals

However, as a general rule of thumb, businesses should allocate anywhere from 10% to 20% of their marketing budget towards email marketing. Statistics indicate that 82% of marketers spend between 0% and 20% of their marketing budgets on email. 

We’ve already detailed how email marketing can pay for itself through high ROI. Also, email marketing can have a much lower cost per acquisition compared to other marketing channels, such as paid advertising, blog content marketing, or social media. 

In other words, you will spend much less money on your email marketing efforts than on other marketing channels, and at the same time, you will see a much higher return on investment.

That aside, the best thing about email marketing is that it helps you build and maintain strong relationships with your audience over time — like no other channel.

At the core of every email marketing campaign is the idea of building relationships and keeping your customers engaged. We all know retaining existing customers and owning a loyal and engaged subscriber base is far more valuable than any marketing strategy. 

That’s why we ensure that every email campaign we create is designed to help you retain customers and foster those valuable relationships. 

From crafting the perfect subject line to including the right icebreakers and call-to-action, we’ll work with you to ensure your email marketing campaigns hit the mark every time — so that you get positive and meaningful returns on your email investments.

What impacts email marketing prices?

Here is a breakdown of the main factors that impact the cost of email marketing. 

List size and quality

The size and quality of your current email list can play a big role in determining the cost of your email marketing. 

The bigger your list, the more it will cost to send emails to all those contacts. As well, a bigger list doesn’t necessarily mean a better list. 

So, you need to focus on the quality of your contacts, too. A list of engaged and interested subscribers is more valuable than a list of faulty email addresses and people who signed up but never opened your emails. 

So, you may need to consider a tool to clean up your list and focus on building a quality audience. If the service must take care of it, it’ll reflect on the bill. 

Many tools are available for identifying invalid and inactive email addresses, including Kickbox, NeverBounce, and BriteVerify.

Using these tools, email list verification can cost you anywhere from $10 to $5,000, depending on the size of your email list.

Define a periodic email cleanup routine and always keep your email lists clean to improve your email marketing results. 

Email design

​​Next up, the complexity of your email design will also impact how much you pay for email marketing. 

If you’re sending text-based emails, chances are, you’ll only have to pay for copywriting and campaign management services. But if you want to create eye-catching and custom email designs, it will cost more than basic text-based emails. 

Email agencies usually charge you a flat or hourly rate for email designs. Depending on the complexity of the design, you can expect to pay anywhere from $100 to $2000 per design. Templated designs cost less, but complex, custom designs cost more.

Remember that the design shouldn’t be your only focus. The content and messaging of your emails are just as important, if not more so. So, don’t get too caught up in fancy designs and forget to focus on the substance of your emails.

Campaign frequency

Another key factor to consider is the frequency of your campaigns. Sending more frequent campaigns will increase the cost. 

For instance, if you send an email monthly to 100k subscribers and pay $0.03 distribution costs per recipient, you will pay $3,000 for every sending campaign. 

On the other hand, if you send a weekly email to 100k subscribers for $0.03 per recipient, you can expect to pay $12,000 per month.

While it can help keep your subscribers engaged and interested, be careful not to overdo it and risk annoying your subscribers with too many emails. 

Finding the right balance is key. We detail more on the right frequency and times to send emails here

Email Marketing Platform

The platform you use to send your emails can also impact the cost. Some email marketing platforms offer more advanced features, which, not surprisingly, will come with a higher price tag. 

In most cases, the pricing will vary based on your chosen plan and the size of your subscriber list. The higher and more valuable the plan is, the more you’ll pay. The larger your email size, the more you will pay as well. 

Here is how some of the top email marketing tool companies compared for a contact list of 10,000 subscribers.

  • MailChimp: $87-$299/month
  • Constant Contact: $105-$180/month
  • Campaign Monitor: $89-$249/month
  • GetResponse: $65-$163/month
  • ActiveCampaign: $139-$424/month

As of now, email tools are a dime a dozen; there are plenty of affordable options out there that still provide great functionality. So, it’s important to do your research and find the platform that best fits your needs and budget.

How much does an email marketing agency cost?

Generally, email marketing agencies charge their clients on a monthly or project basis. Some agencies may charge a flat fee for each email sent, while others may charge based on the number of subscribers on your list, the workflow involved, or the complexity of your email design.

On average, you can expect to pay anywhere from $300 to $5000 per month for email marketing services. Smaller agencies or freelancers may offer their services at a lower rate, while larger agencies with more experience and a wider range of services may charge more. 

Nerdy Joe email marketing management pricing

At Nerdy Joe, our email marketing service pricing includes all the features and perks you can expect for market-leading email services. We will help you with all your email marketing needs going from lead nurturing, drip email marketing, email design, and more. 

We have an in-house team of dedicated email marketing experts who only take pride in providing you with top-notch email marketing services, generating more leads for you, helping you stay connected and engaged with your customers or subscribers, and getting you more sales. 

Here are our agency’s email marketing services, with a detailed outline of the different perks and pricing involved. 

BasicGrowthMarket Leader
Numbers of emails included2 emailsA sequence of up to 5 emailsAs many sequences as needed
Plain text or HTML-style
Subject line split testing and optimization
Call to action split testing and optimization
Preview text split testing and optimization
Email format split testing and optimization🚫
Optimization for mobile
Campaign & target strategy🚫
Strategy call🚫Once per monthWeekly
A dedicated account manager🚫🚫
Fully done-for-you email marketing🚫🚫
Copy revision1515
Email deliverability management🚫
List building🚫🚫
Segmentation strategy🚫
Testing of emails on a segment before adoption🚫
Open rate analysis🚫
Click rate analysis🚫
Conversion tracking (Based on unique events you define)🚫
Email list clean-up and maintenance🚫🚫✅ (Extra $)
Additional emails$250$250$250

What exactly does an email marketing agency do, and how does it help your business?

An email marketing agency takes the hassle out of email marketing by helping you develop and run a targeted email campaign strategy so that you can focus on running your business while knowing that your email marketing campaign is in good hands.

As a business owner or marketer, you need and have to stay connected with your customers and prospects, but managing email campaigns can be a time-consuming, complex process and, most importantly, a full-time job. We understand that.

So, email marketing agencies like ours set out to work with you to develop a targeted email campaign strategy that aligns with your business goals and reaches the right audience. 

We will help you craft engaging content that resonates with your target audience and compels them to take action, such as making a purchase, filling out a form, or visiting your website.

We will then use email marketing software to manage and execute your campaign, including creating and sending emails, A/B testing and optimization, managing email lists and subscriber data, and tracking and analyzing campaign metrics based on your goals and needs. 

Six questions you should ask before choosing an email marketing service agency

1. Can you offer a detailed proposal outlining your services and fees? 

Before committing to an email marketing agency, you have to understand the scope of their services and the associated costs. 

Ask the agency if they can provide a detailed proposal outlining their services, strategies, fees, and any additional costs or fees that may arise. 

Doing so will give you a clear understanding of what to expect and help you make an informed decision about whether the agency is the right fit for your business.

2. What email marketing strategies do you recommend for my business? 

You need to ensure that the agency understands your business and can recommend a strategy tailored to your specific needs.

Every business is unique, and your right email marketing strategy will depend on your industry, unique target audience, and marketing goals. 

3. What kind of content creation services do you offer? 

Email marketing is only effective if your emails are engaging, informative, and relevant to your target audience. 

Ask the agency if they offer content creation services like writing copy, designing emails, or creating images or videos. Make sure their content creation services align with your brand and marketing goals.

4. How do you measure the success of an email marketing campaign? 

Metrics like open rates, click-through rates, and conversion rates are essential for measuring the success of an email marketing campaign. But so are your unique marketing and sales goals. 

Ensure the agency has a clear plan for tracking these metrics and can provide regular reports on how they are working to meet your overall marketing and sales goals to help you understand the results of your campaign and the logical steps to follow.

5. What email marketing software do you use? 

Email marketing software vary greatly in terms of features, pricing, and ease of use. Ask the agency what software they use and ensure you have experience with it. At least, make sure that the complexity of the tool won’t cause any hindrances. 

Make sure the software they use is reliable and has the features you need to run a successful campaign. Even more important, ensure that the software integrates well with the tools you currently use to manage your business. 

6. How do you manage email lists and subscriber data? 

Managing email lists and subscriber data is an essential part of email marketing. If your email marketing agency fails to keep the list clean and up to industry standards, your email campaigns will churn. 

Ask the agency how they manage email lists, how often they clean and update them, and whether they follow practices for subscriber data management, such as GDPR compliance.

Email marketing expenses you need to consider. 

Keep in mind that these only apply if you are not outsourcing email marketing and decide to self-manage your campaigns. 

Email marketing software costs:

There are various email marketing software options, each with its features and pricing. 

Some popular options include Mailchimp, Constant Contact, and Campaign Monitor. The cost of email marketing software typically depends on the number of subscribers you have and the features you require.

For instance, Mailchimp charges $9.99/month for up to 500 subscribers, while Constant Contact charges $20/month for the same number of subscribers. Campaign Monitor charges $29/month for up to 500 subscribers but also offers more advanced features.

Email content creation costs

Creating engaging and effective email content is crucial to the success of your email marketing campaigns. The cost of creating email content varies depending on the type of content you create. 

For example, creating a simple text-based email is relatively inexpensive, but creating an HTML-based email or interactive email can be more costly. Keep in mind that email and newsletter copywriting prices can vary from $200 to $1000.

You can create email content in-house or outsource it to a professional. If you create content in-house, the cost’s effectiveness will depend on the time and resources you invest. 

Outsourcing email content creation to a professional can be more expensive but can also result in higher-quality content.

Email list management costs

Keeping your email list clean, and up-to-date is essential to the success of your email marketing campaigns. The cost of email list management services is tied to the size of your email list and the service you use for it.

Some email marketing software options, such as Mailchimp, offer basic list management services as part of their package. However, if you require more advanced list management services, such as list segmentation or data analysis, you may need to outsource to a professional. 

You can hire these people on platforms like Fiverr and Upwork, and depending on their experience, your list size, and a few other factors, they can cost you anywhere from $200 and $2000 per month to keep your list clean.

Hiring professionals for email list maintenance can cost you anywhere from $200 and $2000 per month.

Alternatively, you can use tools like Kickbox, NeverBounce, and BriteVerify.

A/B testing and optimization software costs

Email split testing features might be included in your email marketing software directly, but know that in most cases, you’ll still have to fork out extra dollars to pay for them every time you need the features. 

But if your email tool does offer those features, you’ll have to pay for a third-party tool that specializes in it. So, how much does A/B testing cost? 

Your testing tool has a great deal to do with what your costs will be. While there are free alternatives, they provide only fundamental features. The cost of the service generally falls within the range of $119 to $1995 per month. 

A/B testing tools can cost you anywhere from $119 to $1995 per month.

However, the price can be higher depending on the number of users you need to test every month.

List growth and subscriber acquisition costs

Growing your email list and acquiring new subscribers is an ongoing process. You need to envision list growth and acquisition tools such as lead magnets, landing pages, and pop-ups. You need to consider the extra pay for those tools as well. 

Email design and development costs

Simply creating-text based emails and adding a couple of images, and sending won’t cut it for you if you are a business and care about branding. 

You must invest in professional design and development services to ensure your emails look and function properly across devices and email clients. 

Now, the price of creating an email template varies depending on the agency. While some agencies offer a design for as little as $100, others may charge up to $2,000 for more advanced designs. 

Typically, a well-designed email will cost anywhere between $500 and $1,000.

Strategy and consulting

You are not an email marketer. You don’t have any experience creating and running email campaigns. Chances are, at some point, you’ll need some counseling or expert insights to figure out what you need to do next. 

So, you may have to pay an email marketing consultant to help you out with your strategy and more. Sometimes, you might have to pay a consultant just so they can tell you what’s wrong with your email copy and why it’s not achieving your desired results. 

Let Nerdy Joe do email marketing for you.

Email marketing can be a highly effective way to reach your target audience and drive conversions, but it can also be time-consuming and complex to manage independently. 

This is where our email marketing agency comes in. 

We take care of all aspects of your email marketing campaigns, including 

  • strategy development, 
  • email design, 
  • list management, 
  • campaign deployment, 
  • testing and optimization, 
  • reporting, and analytics.

Want to give us a try? Have a free 15-min consultation call with us here.

Note: Struggling to get replies or book meetings with prospects that fit in your ICP? We’ll help you get 6 SQLs or book 6 meetings with prospects that are ready to buy for only $999/month. Book a 15-minute consultation now.

Get 3 – 5 meetings every week

We can fill your calendar with 3- 5 meetings every week. Just tell us who is your ideal customer, and we’ll get you meetings with them.

Discover more articles

Discover our latest articles here