Hiring an eCommerce email marketing agency can push your profits to new heights. But how do you know how much you should pay?
If you can understand what you need, what you're actually paying for, and what to expect in terms of ROI, you'll be in a great position to find the best service for your business at a reasonable price.
We'll cover the basics and give you a range of prices for services agencies deliver below.
What Factors into an eCommerce Email Marketing Agency's Cost?
Use these four factors to have a good understanding of what agencies charge for the types of services that deliver fantastic results.
1. Full-Service Campaign Management
The first factor to consider is how much work you actually want the agency to do. Some will conduct individual campaigns or go as far as to build and execute your entire strategy.
For full-service campaigns, it matters what email campaigns you've already created. For example, if you already have cart abandonment emails and a welcome series, creating your lifecycle emails will cost less than if we had to build each behaviorally triggered email.
If you're a mid-sized business working with an agency, rates start at around $300 to $900 a month. SmartMail starts at $500 per month and scales up based on the size of the list and frequency of emails.
2. Platform Requirements
Another aspect to factor in is the platform. Some agencies will require you to choose which platform you work from. While it's nice to have a choice, your subscription with that platform isn't usually included in your rates.
For instance, a 20,000 subscriber list could cost an additional $375 with Klaviyo or $189 with Mailchimp (check out Klaviyo vs. Mailchimp for a comparison of the two). Adding this to your expenses can increase the cost significantly as your list grows.
Some agencies use their own platform and roll the cost into your baseline price. Ultimately, this option saves you money. And, you usually get the most value out of the platform because the agency knows it inside and out.
3. Number of Subscribers and Campaign Frequency
The next important cost factor is the number of subscribers you have and how often you're sending emails. When these rates are multiplied, you have what's known as your send volume.
Generally, the larger your list, the more it costs. Just based on size, some agencies will charge up to $250 for 10,000 subscribers, for one message blast a month. If you don't intend on sending a lot of emails, this may be fine. But if your list is already approaching the 10,000 level, you'll likely be charged additional send fees.
If your agency does charge per recipient, the price can rack up fast. With a 100k list, at $0.03 per recipient, you'll pay $12,000 per month for a weekly newsletter. If your business depends on these messages, you may determine it's worth the cost. But for most companies, finding an agency that charges a flat rate for the size of your list will be more cost-effective.
To reduce this cost, the best strategy is to scrub your email list. Sites like Kickbox, Neverbounce, and Briteverify will charge a one-time fee of around $400 to look through your contact list and provide recommendations for who to boot and who to keep. This removes inactive subscribers, improving your list's actual engagement.
4. Email Template Designs
The final major cost is based on the type and number of templates you want for your campaigns. This can be anywhere from $500 to $1,000 for a basic design, or up to and over $2,000 for enhanced options.
When you add the design aspect, you're including all the imagery and the color scheme to match your branding. This is the more customized template for your campaigns and helpful if you don't have an in-house designer.
These emails are more eye-catching and stand out from the rest of your recipient's inbox, but they also cost more than a static template. We recommend a mix of these templates, so the exciting emails don't lose their luster.
Weighing The Cost of an Email Marketing Agency
When everything is said and done, you can expect to pay anywhere from $500 to $2,000 per month for email marketing services.
We've found that long-term contracts tend to be detrimental to both parties. So instead, we provide a done for you solution on a monthly agreement. We'll create and implement all the rules for your automated emails, and create high converting designs that'll drive massive ROI for your campaigns.
If you're interested in seeing a six-month roadmap with specific campaign recommendations, schedule a consultation, and we'll be happy to help.