Email Marketing Agency Pricing – The Ultimate Guide

Email marketing has proven to be one of the most efficient channels for digital business promotion. However, not many companies know how to use and manage it correctly to capitalize on these promotions without assistance from professional marketers. 

How much does it cost to hire an email marketing agency? For businesses, this is one of the most important questions since their success depends on choosing the right service provider with the most advantageous pricing policy. 

Everything you need to know before spending money on expert email marketing services will be covered in this article. We’ll go into detail about the major pricing methods you’ll probably come across and other important aspects that impact email marketing agency costs.

How Much Does It Cost to Hire an Email Marketing Agency?

Before we begin, we would like to point out that the typical cost of the email marketing agency services we will be discussing is based on the US market. Prices may be significantly lower if you live in another country or shop around the world.

Also, this piece will only discuss prices for full-service email marketing businesses, not freelancers.

First, let’s look into the common representation of email marketing agency pricing ranges and what they might include. 

Our research showed that the initial search on the price range can provide results as low as $300 to $900 per month. These low rates are typically too good to be true. There’s a reason why full-service, effective email marketing is more expensive. Although less expensive services could save you money, they frequently lack the expertise, customization, and calculated approach required to provide tangible outcomes.

All businesses, but especially if your company is small or medium-sized, must understand the structure of these expenses. After all, effective email marketing may greatly boost your revenue and increase engagement.

To give you the answer to your question about how much agencies charge for email marketing, let’s take an initial look at what these costs include and how they form.

The email marketing agency cost will include:

• Email marketing strategy;
• Copywriting;
• Design;
• Implementation.

This means the cost will include the service of an entire team, made of:

• A strategist;
• A project manager (aka account manager);
• A technician;
• A copywriter;
• A designer.

Here are the most popular email marketing agency pricing structures:

• Per hour;
• Per project (one-time setup);
• Per email;
• Retainer service.

Realistic Email Marketing Agency Cost

While preparing this guide, we came across different sources that claimed incredibly inexpensive costs for email marketing providers. However, believing in email marketing agency pricing myths won’t take you far in terms of both strategy and results. 

For example, some of these sources stated that mid-sized companies who cooperate with an expert agency can anticipate monthly costs as low as $300 to $900. According to another report, companies might pay $300–$500 a month with an agency or $9–$1,000 a month on self-managed campaigns. These statements suggest that working with an agency is less expensive than running campaigns internally, which is illogical. 

Naturally, full-service email marketing at such low prices raises concerns about the quality and extent of the provided services. We also recommend you be wary of hidden fees and unpredicted expenses when you see suspiciously low numbers on the service price tag. Overall, these numbers appear deceptive and do not accurately represent the actual expenses of successful email marketing.

To give you perspective on the email marketing agency realistic cost, we’ll describe all possible models and elements that usually impact the price. With our guide, you’ll be able to choose a reliable service provider with a transparent pricing structure and the most beneficial model for your campaigns. 

Average Cost of Email Marketing Per Email

This is one of the most important price considerations for production accounts. When it comes to PPC services, email marketing agencies provide a variety of price models, including hourly charges, flat rates, and a monthly retainer plan.

The more emails that must be created, sent, tracked, and evaluated, the more expensive they will be.

Individual email creation expenses can vary from $200 and $1,500 per email, with complicated or dynamic emails potentially costing up to $10,000. This cost depends on:

• Email complexity;
• Dynamic features;
• Number of content sections;
• Number of links;
• Artwork originality;
• Templates;
• Segmentation;
• Testing.

Conclusion:  The usual price range for an email marketing agency is $200 to $1,500 per email.

Email Marketing Agency Pricing Models

Here is our take on the most popular email marketing agency pricing models. Some of them are more commonly used than others but we’ll give you an overview of all of them, so you have more understanding of your options.

Email Campaign Pricing Per Hour

This hourly model is not common for email marketing agencies. Only the agencies who just started their business might charge per hour for their work or consultation.

• Small agencies/freelancers: $40–$200 per hour
• Established agencies: $150–$200 per hour

This covers the work of a full team, which may include a strategist, project manager, technician, copywriter, designer, and assistant.

You might ask, “Why don’t most agencies charge by the hour?”.

Because it would ultimately be too expensive for the client, making this model inefficient. More experienced agencies tend to avoid this model in favor of more practical pricing structures.

Email Marketing Campaign Prices Per Project

A popular choice for small organizations and entrepreneurs is to pay by project. Project pricing means you pay for a specific task or scope of work, such as setting up automated emails. Agencies often use retainer agreements to work with a client for an extended period (usually a year or more) on recurring projects.

This email marketing cost structure is effective for creating automated emails (also known as drip campaigns, sequences, and flows). It will not work for newsletters and promotional emails.

You can configure your automatic emails once and leave them in place for as long as you are satisfied. You can’t do the same with campaigns because you have to build a new one every time you send one.

The most commonly requested for setting up automated email sequences can be the following:

• Welcome Series
• Abandoned Cart Reminders
• Post-Purchase Follow-Up

These automations typically include 1–3 emails per sequence, and once set up, they can run continuously with periodic maintenance. The cost of setting up automatic emails varies based on what you want to set up. 

A setup like that will cost:

• Small agencies/freelancers: around $3,000 to $10,000
• Established agencies: $10,000 to $25,000

Pro Tip: If you decide to work with an agency on a project-by-project basis, consider requesting fully customizable email templates. This will allow you to tweak future campaigns without needing additional help.

Cost of Email Without Retention

If you have a specific email campaign you’d like to implement and need a professional, a per-email price approach may work, but it is usually more expensive. Each email requires significant preparation, including strategy, design, and content generation. 

Automation Pricing:

• Small agencies/freelancers: Around $500+ per email
• Big agencies: $750–$1,500+ per email

This is why many agencies prefer to spread the cost over several months rather than charging for individual emails.

Pricing for more complicated or dynamic emails can sometimes exceed $10,000. This demonstrates the substantial effort and knowledge necessary for high-quality email campaigns.

Email Marketing Retainer Service Cost

This is the most typical method of collaboration between clients and email marketing agencies. Why?

Learning about your organization, clients, and products takes time. Optimizing an email marketing plan for best performance also takes time. Even automation that can be “set and forget” requires ongoing maintenance to optimize performance.

Therefore, effective email marketing is not just about sending emails — it’s about:

• Optimizing strategies
• Testing content
• Continuously improving performance

With this model, you commit to sending a certain number of emails per month, and the agency delivers those emails every month.

• Lower-end retainers ($2,000–$3,000/month): Cover 5–10 emails per month.  
• Mid-range retainers ($5,000–$7,500/month): Include 10–15 emails per month.  
• Higher-end retainers ($10,000–$15,000/month): Provide 15–20+ emails per month, often with additional services such as advanced segmentation, in-depth analytics, and strategic planning.  

Some agencies also charge you for the setup fee.

Automation Pricing:

• Small Agencies/Freelancers: $200–$400 per email
• Big Agencies: $750–$1,500+ per email

Email Marketing Cost of Hybrid Models

Hybrid models mix project-based and fixed-rate pricing to provide firms with flexibility.

This option is appropriate for brands who are just getting started with an agency. For example, you can hire an agency to set up your automated emails and then pay a monthly charge for ongoing campaign management.

Pricing for Hybrid Models:

• Automation setup fee: $3,000–$6,000
• Performance-Based Compensation: A hybrid model also allows for performance-based compensation, where agencies are rewarded based on key performance indicators (KPIs).

Benefits of Hybrid Email Marketing Agency Pricing:

• Clients only pay for the services they need.
• Agencies can provide more personalized, cost-effective solutions.
• Encourages long-term partnerships with flexible engagement.

Drawbacks of Hybrid Models:

• Clients may try to negotiate too many services, reducing the agency’s profit margin.

Factors Influencing an Email Marketing Agency Pricing

Comprehensive services extend beyond design and delivery. We’ll look at the important aspects that determine email marketing agency prices, such as campaign complexity, customization, and support levels.

Understanding these factors will help you better understand how agencies set their rates and how much you may anticipate paying.

Agency Experience

More experienced agencies charge more but provide extensive expertise and a committed team. Professional companies, such as Flowium, offer a comprehensive variety of services, from strategy to execution, ensuring high-quality results and optimal performance.

Company Size

A larger agency will charge more than a smaller one because its team is larger and its services are more comprehensive.

Small email marketing businesses frequently hire contractors and freelancers, which are less expensive than full-time staff.

This does not imply that the quality of their work is lower. Small agencies, on the other hand, benefit from a more in-depth approach, which is advantageous in highly specialized businesses.

However, the involvement of numerous outside contractors can impede internal communication, and turnaround times are frequently lengthier as a result.

So, if you want an agency with a strong, consistent team and short response times, expect to pay more.

Campaign Complexity

The email marketing agency price will also depend on the complexity of your campaigns and the automation you want to set up. 

Standard email automation is less expensive since it uses basic workflows like welcome emails, abandoned cart reminders, and simple drip campaigns that require little customization. These campaigns are frequently pre-built templates or simple setups that rely on broad audience behavior rather than specific targeting. 

In comparison, advanced campaigns include sophisticated aspects such as audience segmentation, tailored content, A/B testing, and dynamic triggers. These features necessitate additional planning, time, and technical knowledge, raising the overall email campaign cost. 

While the initial expenditure is higher, the increased ROI frequently covers the cost for organizations that prioritize long-term client connections.

Email Marketing Campaign Frequency

The more emails you send, the more it costs. It’s a basic rule here.

Every email costs your email marketing agency money because it has to pay copywriters, designers, editors, implementation teams, and so on.

But each email increases your conversions and revenue.

As this is an email marketing agency cost factor you can easily control, it is up to you to decide how much you are ready to invest in your email marketing efforts and how much you would like to scale up your campaigns. 

Customized Design

Today, customers are more drawn to a campaign’s visuals than its textual content.

Even the most basic notification email should be visually appealing and consistent with your brand.

As your firm expands, you will no longer be able to employ email marketing templates and will need to invest in customized email campaign designs. This is an additional cost that will affect email marketing agency service pricing.

Industry Specifics

Different industries require different tools and approaches, which have a big impact on email marketing agency pricing.

Ecommerce businesses often need multiple automations to achieve consistent sales and engagement. B2B enterprises, on the other hand, may require fewer emails, but they are often highly tailored and geared toward nurturing long sales cycles, frequently involving comprehensive content.  The complexity and number of emails have a direct impact on expenses, as ecommerce campaigns necessitate powerful automation technologies, whereas B2B email strategies frequently require extensive personalization and in-depth analytics.

As a result, industry-specific needs influence not just the type of services provided, but also the level of knowledge and resources required, hence determining the total pricing structure.

Subscriber List Size

When you contact an email marketing service, you will always be asked how many subscribers you have on your list. The reason is simple: the size of your email list determines the amount of list management effort necessary and therefore the price of email marketing software. 

The more subscribers you have, the higher the email marketing costs. Larger lists require more work for segmentation, management, and reporting. They also increase software costs and agency workload.

Email Marketing Software

Another factor that greatly influences an email marketing agency’s pricing is the software it uses. 

There are many different email service providers, some better than others. Many agencies will have subscriptions to multiple platforms, but will generally use one or two as their preferred one.

It is best to choose an agency that specializes in one, maximum two email marketing software. This way, you benefit from more expertise. 

Here are other email marketing platform options, with their pricing:

Advanced features often mean higher monthly costs, which agencies factor into their fees.

Klaviyo is an optimal email marketing software choice, price-wise and quality-wise. You can consult Klaviyo’s agency partner directory to find out which email marketing agencies are officially partnering with this email marketing solution.

Scope of Services

The price of email marketing depends on the level of support you need. Some agencies bundle services, while others charge per task. 

An email marketing agency can go beyond email marketing and offer you other types of digital marketing services, such as:

• Social media marketing;
• Full marketing strategy plans;
• SMS marketing;
• Sales funnel creation; 
• Phones services;
• Web design;
• Marketing automation integration;
• CRM synchronization;
• Custom API development.

Some organizations may be interested in combining email marketing with other marketing tactics, such as SMS marketing.

Every additional service will raise your email marketing agency pricing. However, the ROI may be even larger for some businesses, so it is worth considering.

When you work with Flowium, a dedicated team is assigned to your project, including:

• Project Manager
• Strategist
• Copywriter
• Designer
• E-Marketing Technician
• Project Assistant

This team ensures the success of your campaigns and automation.

How to Calculate Email Marketing Agency Costs

Deciding on the optimal email marketing agency price isn’t easy but possible if you carefully consider your resources. The main criteria should be your company size and revenue. To help you calculate the email marketing budget and projected costs, here are some recommendations for small and middle-sized businesses (SMBs) from our experts.

• Annual revenue of less than $1 million.

Set aside 6-8% of your whole sales for email marketing. Currently, your primary focus should be expanding your customer base and developing effective email campaigns that drive conversions.

• Annual revenue ranges from $2 to $4 million.

A more moderate amount of 2–4% is recommended. By this point, your email marketing plan should be optimized for both acquisition and retention, allowing you to generate consistent revenue.

• Annual revenue of $5 million or higher.

Larger organizations can often spend about 1% of their total income on email marketing. With a larger client base and more streamlined operations, efficiency becomes critical, and your campaigns should prioritize long-term value through automation and segmentation.

Tailoring your email marketing budget to your company’s revenue assures a proportional investment and enables long-term growth.

Remember that aligning your email marketing budget with your company’s bottom line guarantees that your investment is proportionate and results in long-term growth.

Email Marketing Budget Calculator

Are you curious about how much your firm should spend on email marketing? Our pricing guide calculator generates individualized budget recommendations and strategic campaign insights. Simply submit a few essential details below to receive data-driven advice on how to increase your email marketing ROI.

 

Frequently Asked Questions