What is your ROI of your investing on your Email Service Providers? If you are one like many marketers, your answer might say that you pay a fixed rate for sending a limited number of email messages per month. Though sending emails is our final goal, definitely other costs roll the dice into overall spending on Email Service Providers.expensive email service providers

These prices may lead to your ROI of your product, and that is the reason why you are a partner with your Email service Providers. They offer online and phone support from their side.

With their support team with whom you can be relied deliberately upon; understand your needs, a development team to add new functionality and proper analytics to check your emails reached safely to your subscribers.

They provide detailed reporting about the results of the email campaign including the delivery success, click through rates (CTR) and email open rates. The most important feature of the provider is their excellent reporting which helps to measure the effectiveness of the email campaigns.

But there are some other expenses of which you are not aware of, in fact, they are hidden from your eye and plundering your pocket. It associates with your internal resources along with exposure to risk which does not provide any benefit to your company.

What are the expenses on Email Service providers?

  • Database Replication

Copying of data from database in computer or server to another database, or to a different location termed as Database replication. This process applies by every SaaS – based Email Service providers, it requires and manages your ability to operate efficiently.

The majority of enterprise companies have already maintained data warehouses where their critical data continues to store. But the question is why we need to duplicate that information while we can access it directly?

Related Post: Optimize Email Marketing Budget with Hybrid Emails

We can categorize expenses of data replication into three parts. Although they did not mention these components on your invoice, in reality, these factors will make a huge difference with every enterprise marketer.data-migration

  • Expenses in Database Migration – The process of Migrating databases is a daunting task to perform. Every Email Service providers contracts mostly include of front-loaded with substantial fees for onboarding. They also take a certain amount of setting up the ETL processes which means Extract Transform and Load. As the migration completes, it may become desperate to add some new data fields or entries, and it may also become hard to make sure changes for integration. They have to do designing of emails and managing the data to sending the emails. It needs continued support from your IT support team until your entire task accomplishes till you reach your expected result. Apparently, today you must plan for the Future of your Program!

Imagine how you will have authentication to work on all your database fields while also discontinuing IT resources to some extent?data-secure

  • Expenses On Data Security – Health insurer Anthem is the one of the company to make headlines as a result of its data breach. So we can anticipate finding some other company in the news for similar that had a data breach. Your data is under continues attacks and performing replicating it to another server which will increase your exposure.

Why would you trust someone else to safeguard your database (and risking your company’s reputation) if it’s not necessary?storage expenses

  • Storage Expenses – Data storage cost will inevitably hit the bar from your Email Service providers side and which in turn increase the CPM rate. Unlike the two above mentioned costs, which are mostly economic? If your product uses significant amounts of customer information, then Email Service providers will charge good amount to store that data.
    SaaS-based Email Service Providers are incurring the same cost to duplicate that data to their multiple servers and passing a portion of those expenses on you.

Why is it not possible to utilize the database which you already paid?

Many experienced marketers agree to these costs because of lack of any other alternative. But now with the emerging of Hybrid technology, which allows marketers to get access to their complete databases without a need of sending that data to a third party servers or computers is made possible.

In effect this results in reduce the expenses on email service providers in at least three ways:
  1. It helps to loosen your ties freeing your IT resources, giving control of full flexibility in utilizing data.
  2. It lets you maintain an only centralized database which allows us to have complete control from our end, which results in results of security risk by keeping your customer information.
  3. It enables your ESP to work more correctly, efficiently and the efficiency gains back to you.

It’s time to think how much you pay for your Email Service Providers and how it is working towards your company’s success.

About EasySendy Pro –

EasySendy Pro is an email marketing platform for the digital marketing team. It integrates with multiple SMTP relay service providers and enables delivery of email campaigns to a list of opt-in emails. You can split test email deliveries across the relay servers and check reports, track email clicks, opens of each email campaign. It also has smart autoresponder and email list segmentation.

To support Micro-Deliverability in Emails; currently, EasySendy Pro allows integration with SMTP relay gateways like Amazon SES, Mandrill, SendGrid, SparkPost, Leadersend, Dyn, Elasticemail, MailGun, SendinBlue, MailJet, TipiMail, and MailerQ. If you are sending an email to a list of above 25,000 email subscribers, then, Micro-deliverability of the email through multiple SMTP gateways provide better email open rate.

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Ankit Prakash is principal founder of EasySendy and Aritic. Ankit is a passionate and determined entrepreneur; building successful Internet product since 2006.


  1. Ankit, I agree on your points. I can truely relate with these reasons as i work under an organisation which works on email marketing so that i can relate thfough every point you have mentioned.

  2. Sarah Williams Reply

    There are several reasons email providers are expensive , including these three.I believe that ESPs are both time-consuming and costly but still there are brands like yours who offers good in less. I am glad !

  3. You shared a meaningful content as email service provider are expensive for sure 🙂 Well, you can take the help of various tools for the purpose of marketing, content writing, email marketing, all available at https://betapage.co/ check them out.

    • Ankit Prakash Reply

      Thanks for the information Richa!
      Will take a look through website.

  4. People often get surprised as to why e-mail service providers are so expensive? Is there an effective ROI after investing on e-mail marketing? This blog is a must read for people to get a good knowledge as to why the cost gets a bit high and it always gives a productive ROI. The three main expenses are Database Replication, data security and storage expenses. All the three points have been highlighted with proper reasoning and facts. One should definitely go through it once if not twice.

  5. trading for beginners Reply

    This is a great post! I think you really provided a great explanation for the expense of service providers. I love that you also included the benefits of these services despite the cost.

  6. As a marketer one has to keep doing a cost-benefit analysis. When Email services providers work more efficiently, it is bound to increase ROI. When we are targeting a variety of audiences, it makes sense to divide those into clusters and treat them more sensitively. An extra effort always pays! Nice article and very confidence building.

  7. Jeremy Hall Reply

    It is fair to say that various email service providers are costly but they provide higher ROI for the investment made, no doubt in that. You can always rely on online email marketing, it also helps in maintaining a central catalogue.

  8. Brandon Price Reply

    Gaining access to the complete databases without sending the data to a third party servers or computers is a fortunate thing to the marketers. This article provides valid explanation for such expensive email service providers.

  9. This blog is a fantastic read! I didn’t know that the email service providers had so many expenses and this blog answered all my doubts. Thanks, keep writing such informative posts.

  10. Gregory Edwards Reply

    Thanks for sharing such a wonderful article! Yes, usually email service providers faces a lot of expenses, although many ESPs have cost based on your send volume, usually referred to as the CPM.

  11. Edward Morgan Reply

    Yes, it is very important to spend on a security that protects agile cloud and NFV environments so that we can more safely participate in this digital age.

  12. Nowadays there are new cloud-delivered security service that helps service providers protect their customers while creating a new revenue stream for their business.

  13. Marie Washington Reply

    This post is up to standard. There are so many other costs that we don’t know about ESPs. No doubt they are costly.

  14. Shannon Boyd Reply

    As a user of these services, all your reasons are on point. Couldn’t have agreed more.

  15. Jason Bell Reply

    As a newbie in the marketing field, I truly understand that these points can help me carry out successful marketing campaigns. Thanks a lot for sharing the blog.

  16. Janice Wood Reply

    It’s interesting to read about the email providers- their costs and the different types also which can be useful for business. Cheers!

  17. Mary White Reply

    Well written blog Ankit! It is an excellent piece of information with an in-depth analysis of an email service provider.

  18. Ashley Alexander Reply

    Well written blog Ankit! It is an excellent piece of information with an in-depth analysis of an email service provider.

  19. Betty Bennett Reply

    Hello Ankit, first of all, I want to thank you for posting such an informative article. Email is an essential part of our digital life. I didn’t have any prior knowledge about email marketing before reading this article.

  20. Email marketers face massive difficulty in selecting service providers for their brands. Most of the email service providers are costlier. In this article, you would get information about affordable service providers.

  21. Patrick Rachel Reply

    Yes, I knew email service providers charge a lot in migrating the database and storing the customer data. But now we have an alternative option of Hybrid technology, and we can use EasySendy Pro.

  22. Hey, I’m astonished to see the reasons behind the expensive nature of email service providers. But I want to select the cheapest one for my business.

  23. Douglas Victoria Reply

    Hey, in this article, I observed some examples of e-commerce email marketing. I’m glad that you have shared this blog post.

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