Email Service Provider

37 Pros & Cons Of Starting An Email Service Provider (2024)

Pat Walls

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Updated: January 18th, 2023

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

Trying to understand the pros and cons of starting an email service provider?

Here are all of the pros and cons of selling email service provider online:

Pros Of An Email Service Provider

Pros	Description
Flexibility	You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Ability to start your business from home	It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
Rewarding work	Starting a email service provider can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Scalable	With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
Traffic to your website	A email service provider gives people a reason to visit your website and to keep coming back to you!
No overhead costs	To get your email service provider started, there are no costs associated with overhead, storage, packaging, etc. This will save you a lot of time and money!
High customer retention rates	Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
High margins	The gross margins for your email service provider are typically around 83%, which is considerably high and allows you to grow your business and manage costs easily.
Control of workload	With starting an email service provider, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.
Unlimited income potential	With starting an email service provider there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.
You are your own boss!	With starting an email service provider, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!
Predictable income stream	Your businesses income stream tends to be predictable based on the number of customers you have signed up. This makes financial planning and outlooks much more seamless!
Higher likelihood of getting referrals	This business is all about referrals, which can be a a very impactful way to attract and retain customers. It's critical that you have a great referral program in place that incentivizes your customers to tell their friends about your product.
Simple business model	A email service provider has the advantage of a simple business model, which makes launching and building the business more seamless.
Greater Income Potential	With this business, the sky is the limit in regards to your income potential.
You get to do something you truly love	With starting a email service provider, you get to put your energy into something you are truly passionate about! You'll find yourself devoting as much time and energy as possible into the business to make it successful.
You can work from anywhere!	Not only can you start your email service provider from home, you can also run your business from anywhere in the world. This is the entrepreneur dream.
Strong Demand & Relatively Recession Proof	The demand for email service provider is increasing year over year and the business is known to be relatively recession proof.
Various different ways to make money	With starting a email service provider, there is not just one business model to choose from. This field is amazing in that there are various different ways to make money. Although this may complicate things, it's great to have different options and sources of revenue.
Make money while you sleep	The advantage of starting a email service provider is that you have the ability to have passive income and make money while you sleep. This is the dream for many entrepreneurs.
Results and revenue happen quickly!	Unlike other businesses, it can be relatively quick to start seeing results and revenue. As long as you follow all the steps to validate your idea before launch, you are likely to see quick results and ROI.

Cons Of An Email Service Provider

Cons	Description
Crowded Space	Competition is high when it comes to your email service provider, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
Motivation of employees	If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Longer Sales Process	A email service provider can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
Security Issues	With any Saas business, data loss and security issues may arise throughout your process of building your product. It's critical that you understand exactly what you're responsible for and how to avoid potential issues down the road.
Isolation	Often times, as a email service provider, you typically work alone and do not have much face-to-face interaction with other team members.
Taxes	As a email service provider, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
No safety net	Typically, as a email service provider, you do not receive a consistent pay-check and instead earn money based on your transactions each month. During the slow periods, you typically take away less since the job is based on commission. It's important to budget accordingly for the slow times.
Stressful work	This line of work can be stressful for both you and your clients. This type of transaction is a significant financial decision for your client, so expectations are very high for you. Although this career path can be very rewarding, it also comes with its challenges and stressful moments.
You may need to charge sales tax	If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out this article
Churn	In this business, customers can cancel their membership or subscription for your services - which can make revenue forecasting challenging and unpredictable. It's important to focus on your churn rates and trends so that you can prevent this as much as possible.
Complex development process.	The development process for a email service provider can be quite complex, which may cause delays and challenges when launching and growing your product.
Complex maintenance	Your email service provider will require a long-term investment due to the need for updates, bug fixes, and security vulnerabilities. It's important that you (or someone on your team) stays on top of this at all times.
Be prepared to get out of your comfort zone!	Although this is exciting for some entrepreneurs, it can be a big challenge for others! You may find yourself in uncomfortable social and business situations, jumping into tasks and responsibilities you aren't familiar with, and pushing yourself as far as you can go!
You might struggle financially (at first)!	If you bootstrap your business or choose not to pay yourself (or pay yourself less than you were making at your corporate job), this can be financially taxing. It's important to adjust your lifestyle and set a plan for yourself so you don't find yourself in a stressful situation.
Minimal physical activity	A big part of starting a email service provider is sitting at a desk for the majority of the day starting at your computer. Some may enjoy this, but others may struggle with sitting for the majority of your day without much physical activity.
The job can be demanding	This is one of the major disadvantages starting a email service provider. It's important to understand that you may need to make yourself available on a 24/7 basis.