Why Using A Monthly Pay Per Email Marketing Plan Is Better Than The Usual Pay Per Subscriber Model

The majority of bulk email software services use a “Pay Per Subscriber” model rather than “Pay Per Email”. On first glance it looks to be a great deal, but dive under the bonnet and you’ll see why it’s a much more expensive way of send regular emails through to your customers.

In fact, it’s the main reason the big players in the email marketing service sector make so much money from unsuspecting subscribers, particularly for small to medium size users who might have a nice selection of lists, but in reality just need to send out selective email marketing campaigns without bombarding their customers continuously.

Lets use a simple example to show why the so-called big players if email marketing…

Business ABC signs up for one of the popular online packages and thinks “wow, unlimited emails for £15 a month, what great deal”, and then decides to start actively marketing his business. Because he is a proactive company, the mailing list starts to grow. Everyone like to subscribe to lists that interest them, so it is very easy for Business ABC to start gaining a large number of leads. The problem comes when Business ABC wants to segregate those leads and start using email marketing effectively, and the major email marketing players know this.

Let us say he is on one of the more popular email marketing pricing plans: 2500 – 5000 customers – £50 per month, email support only 5000 – 10,000 customers – £75 per month, email support only 10,000 – 25,000 customers – £150 per month, email support only

He has a number of mailing lists, say 7, and each one is targetted to different parts of his business, some are also seasonal, so he doesn’t send out regular emails to 4 of the lists, just occasionally. So say each list starts with 500 subscribers, this means that he will be paying £50 per month, as his current plan would be based on the TOTAL amount of subscribers in his account.

Because his lists will almost certainly continue to grow, on average doubling every 3 months, at the end of a year he will almost certainly have accrued around 14,000 subscribers, so by the end of the first year he will be on the higher level at £150 per month, and as the lists get bigger and bigger, the costs keep going up and up! At the end of the first year, he has spent £1100 on email marketing

If he had chosen pay per email as the pricing plan, things would be a lot different, simply by choosing an email marketing plan that allows as many subscribers as you wish in your plan and just paying for the amount of emails that you send.

So let us say he sends regularly to 4 out of 7 of his lists, so on average, around 4,000 emails a month, plus occasionally sending to the balance of his list, say 3 times a year to the other 5,000 subscribers. On this basis he would be able to keep his base plan at a more affordable £30 per month (on average) Business Bulk Email Plan, and top up 4 times a year to a slightly larger plan for the bigger mailshots. In this instance, the total cost would have been £540, a total saving of £560 over the more traditional pay per subscriber model!

Also, because pay per email based services tend to reflect the true nature of how businesses actually use email marketing, you will almost certainly find that email delivery reliability is much improved, as pay by email servers tend to be much less overloaded with web requests, and as a consequence, the entire email campaign delivery is a much, much smoother process.

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