How Much Does It Cost To Start An Email Automation Platform? (In 2024)
Looking to start an email automation platform?
But curious about:
- how much it costs to start an email automation platform?
- what are the typical email automation platform startup costs?
- or the actual cost of starting email automation platforms?
Well, we have the data to prove it, supported by real email automation platforms and how much they actually cost to start.
Let's go over it.
What is the average cost of starting an email automation platform?
Based on our data reported by actual email automation platform founders, the average cost of starting an email automation platform is between $100 and $100,000.
Additionally, our data shows that the the median startup costs for an email automation platform are around $1.5K.
Remember, though, not all email automation platforms are the same - and neither are people's budgets. It's important to distinguish between different levels or types of email automation platforms
Real World Examples: How much does it cost to start an email automation platform?
We asked real email automation platform founders and business owners how much it actually cost to get started?
Here is what they said:
Ignacio Arriaga
Founder of Acumbamail ($85K/month)
"We bootstrapped the company from scratch, we only invest around 4.000$ that were mandatory to build a company in Spain and we never made any funding rounds after that."
Ignacio Arriaga is one of the founders of Acumbamail, an email marketing software company that started in 2013 and focuses on providing services like massive SMS and transactional email configurations.
Mike Taber
Founder of Bluetick.io ($3.5K/month)
"I spent around $15k of my own money on these contractors."
Mike Taber is the founder of Bluetick.io, a self-funded SaaS app that helps salespeople, customer success reps, and busy founders close the loop with their customers using sequences of automated email follow-ups.
Guillaume Moubeche
Founder of lemlist ($100K/month)
"As most SaaS (Software as a Service) companies, the only costs were actually servers costs. However, since we were part of the AWS startup program we actually didnβt have to pay anything."
Guillaume Moubeche is the founder of lemlist, a cold-email automation platform that started in early 2018 and has now reached $600,000 ARR as of September 2019.
Arthur Backouche
Founder of COLDINBOX ($35K/month)
"The MVP took just 2 weeks to build and cost only $400."
Arthur Backouche is the co-founder of Coldinbox, a SaaS tool that allows users to send bulk invitations on LinkedIn with personalized messages.
Phaiboon Trikanjananun
Founder of Taximail ($120K/month)
"The MVP took just 2 weeks to build and cost only $400. I registered the domain and it cost $12.99. It really didn't cost much."
Phaiboon Trikanjananun is the founder of Taximail, an email marketing and automation platform that serves over 5,000 reputable organizations and continues to grow globally.
Dmitry Kudrenko
Founder of Stripo ($400K/month)
"Our initial minimum price was $10... after nine months, we introduced a paid plan to cover team expenses, which numbered around $20,000 per month."
Dmytro Kudrenko is the founder of Stripo, an email template builder that simplifies the email creation process for marketers.
Will van der Sanden
Founder of Dux-Soup ($400K/month)
"It took 6 months of development to produce the first version of Dux-Soup that I was happy could be released and used commercially."
Will van der Sanden is the founder of Dux-Soup, a LinkedIn automation tool that helps businesses accelerate growth by generating more leads through LinkedIn.
Sylvestre Dupont
Founder of Parseur ($40K/month)
"After about 2 days and $200 spent, we got hundreds of visits and about 50 email addresses."
Sylvestre Dupont is the founder of Parseur, a data extraction service that has grown to over $40,000 per month in revenue.
Tareq Hasan
Founder of weMail ($120/month)
"If it comes to the cost of developing, the process is a continuous one, regarding investments and efforts. Our initial cost was for the webserver, domain & Google cloud servers, and Google cloud functions. You can also consider the investment behind our marketing, engineering, and design team along with the logistics."
Tareq Hasan is the co-founder of weDevs, a company specializing in WordPress products that started in 2008.
Aquibur Rahman
Founder of Mailmodo ($8.5K/month)
"We had the idea to start Mailmodo in February 2020. We had our MVP by October 2020 and launched publicly in January 2021."
Aquibur Rahman is the founder of Mailmodo, an email marketing software business that launched in January 2021 and quickly accelerated to 100k+ ARR in just five months.
Enjoyed reading these real world examples?
Our platform is full of case studies of successful email automation platforms that you can learn from.
Starting an email automation platform - what you should know:
Launching an email automation platform can be daunting, and understanding cost influencers is crucial for budgeting effectively.
Infrastructure Costs
Initial costs for infrastructure vary widely based on the scale and quality of the setup. Basic requirements include servers, which can range from $100 to $500 per month for small-scale solutions. For more robust systems, dedicated servers or cloud solutions like AWS or Google Cloud can cost anywhere from $5,000 to $50,000 annually depending on traffic and storage needs. Additionally, investing in quality email deliverability tools can add another $50 to $500 per month.
Software Development
Building the software is another significant expense. Hiring an in-house developer can cost between $70,000 and $130,000 per year in the U.S., whereas outsourcing development could range from $30 to $50 per hour in countries like India or Eastern Europe. For a minimum viable product (MVP), you might expect to spend anywhere from $20,000 to $100,000, depending on complexity and features required.
Compliance and Security
Adhering to regulations such as GDPR or CAN-SPAM and ensuring robust security is non-negotiable. Investing in legal expertise for compliance can cost $2,000 to $10,000 initially. Regular audits and cybersecurity measures could add another $1,000 to $5,000 annually. Implementing SSL certificates, two-factor authentication, and other security protocols can further increment costs, typically averaging around $1,000 per year.
In summary, understanding these cost drivers and planning accordingly can help you manage your budget effectively while ensuring a smooth launch of your email automation platform.
Potential Costs of Starting an Email Automation Platform
Starting an email automation platform involves various costs, ranging from software and hosting fees to labor and marketing expenses. Below is a detailed breakdown of these potential costs:
| Category | Item/Service | Cost Range | Description |
|---|---|---|---|
| Software | Email Automation Software | $200 - $2,000/month | Subscription costs for an existing email automation software (e.g., Mailchimp, HubSpot) |
| Hosting & Servers | Cloud Hosting | $50 - $500/month | Hosting costs depending on the required bandwidth and storage (e.g., AWS, Google Cloud) |
| Dedicated Server | $100 - $1,000/month | For heavier workloads and higher reliability | |
| Development | Frontend Developer | $70,000 - $120,000/year | Salary for developing the user interface and experience |
| Backend Developer | $80,000 - $140,000/year | Salary for developing server-side logic, API integrations, and database management | |
| Mobile Developer | $70,000 - $120,000/year | Salary for development if offering mobile app integration | |
| Design | UI/UX Designer | $60,000 - $100,000/year | Salary for creating a seamless and engaging user interface and experience |
| Marketing | Digital Marketing | $1,000 - $5,000/month | Costs for PPC, social media ads, SEO, content marketing, etc. |
| Brand Design | $1,000 - $10,000 | One-time cost for creating a brand identity including logo, color schemes, and design guidelines | |
| Infrastructure | Domain Name | $10 - $50/year | Cost for purchasing and renewing the domain name |
| SSL Certificate | $0 - $150/year | Secures website; some hosting providers offer free SSL certificates | |
| Customer Support | Customer Support Team | $40,000 - $80,000/year | Salary for a team to provide technical and customer support |
| CRM Software | $12 - $150/user/month | Subscription to Customer Relationship Management tools (e.g., Salesforce, Zoho CRM) | |
| Security | Security Software | $100 - $1,000/month | Subscription to security solutions to prevent unauthorized access and protect user data |
| Compliance | Data Protection Legal Fees | $5,000 - $20,000/year | Legal advice and audits to ensure compliance with GDPR, CAN-SPAM, and other regulations |
| Miscellaneous | Office Space | $500 - $5,000/month | Physical office space, if needed, for the development and business operations |
| Office Supplies & Equipment | $1,000 - $10,000 | Computers, desks, chairs, and other necessary office equipment | |
| Training & Development | $500 - $5,000/year | Costs for upskilling the team, attending relevant workshops, and conferences |
Each cost element might vary based on specific requirements and geographic location. Proper budgeting and cost analysis are essential to balance expenses while ensuring quality and reliability.
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Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
