Email marketing and email fundraising have been known to have a good return on investment (ROI), but a good business person will not simply disregard all the expenses incurred in the entire business marketing promotion online. Knowing the actual cost of an email marketing or email fundraising campaign will help you get the best value for your money. In this article, we will break down the actual cost of email marketing for you. Knowing the cost of an undertaking will help prevent surprises that could be unpleasant down the road.
- The number of campaigns – Knowing the number of campaigns is the most obvious determinant of the cost of any Internet business marketing promotion. When you are just starting out, this is not going to matter the most because you will obviously have lesser campaigns to make. But as your business grows bigger, you will have to begin to plan the number of campaigns that you are going to make because this can be potentially burn a hole in your pocket.
- Number of contacts and emails you want to send – Another thing that you have to look at is the number of contacts which correlates to the number of emails that you want to send every month. The higher this goes, the higher you will have to spend.
- Fees for marketing manager or agency – For those who are just starting out, the tendency is to hire a cheaper ESP (Email Service Provider), but these may have certain caveat. Sometimes cheap is also synonymous with lousy service and that is why you have to be very careful in the selection process. As your business grows, it stands to reason that you have to consider hiring a top tier fundraising company which means, higher fees as well.
- The cost of the email list – For those who are too lazy to build an email list from scratch, you would have to count also the cost of renting an email list. As we have warned in our previous posts, this can also mean low conversion because of low relevance.
- Fees for technical support – Depending on the plan that you bought, some fundraising companies do offer technical support for an extra fee. This will give you certain advantage but you have to remember that this could mean extra expenses too.
Since cost is the most important factor in every business decision, knowing the cost of an email marketing campaign has a lot of advantages. But despite its cost, email marketing has great return of investment and therefore should not be ignored by any online business person. Studies have shown that for every dollar that you spend on email marketing, it will have an ROI of $42. Planning for it though, will even give you a better bang for every buck.