What is Per User Pricing?
Per user pricing in the context of
Email Marketing refers to the cost structure where businesses are charged based on the number of users or subscribers in their email list. This model enables companies to scale their email marketing efforts according to the size of their audience, ensuring they only pay for the resources they use.
How Does Per User Pricing Work?
Typically, email marketing platforms offer various pricing tiers. These tiers are defined by a range of subscriber counts. For instance, a platform might charge a certain amount for up to 1,000 subscribers, a higher amount for up to 5,000 subscribers, and so on. Businesses choose the tier that best fits their current needs, and as their subscriber list grows, they move to higher tiers.What are the Benefits of Per User Pricing?
There are several advantages to this pricing model: Scalability: As your
subscriber list grows, you can easily move to a higher pricing tier without any disruption to your service.
Cost Efficiency: You only pay for what you use, making it a cost-effective option for both small businesses and large enterprises.
Predictability: Knowing your cost per subscriber helps in budget planning and financial forecasting.
Customization: Many email service providers offer additional features that can be unlocked as you move to higher tiers, allowing for better customization of your email campaigns.
What are the Drawbacks of Per User Pricing?
While per user pricing has numerous benefits, there are some drawbacks to consider: Cost Escalation: As your subscriber list grows, the cost can increase significantly, especially if you have a large number of inactive subscribers.
Complexity: Managing and segmenting large lists to ensure you're getting value for your money can be complex and time-consuming.
Feature Limitations: Lower tiers may come with limited features, which could restrict the effectiveness of your email marketing campaigns.
How to Choose the Right Pricing Tier?
Selecting the appropriate pricing tier involves several considerations: Current Subscriber Count: Know the size of your subscriber list and choose a tier that fits.
Growth Projections: Consider your projected
growth rate and choose a tier that offers some flexibility for expansion.
Feature Requirements: Ensure the tier you select includes the features you need for your email campaigns, such as
automation,
A/B testing, and
analytics.
Budget: Align your choice with your budget constraints, keeping in mind the potential for future growth in your subscriber list.
Which Email Marketing Platforms Use Per User Pricing?
Most major email marketing platforms offer per user pricing. Some of the well-known ones include: Mailchimp: Offers a range of plans based on subscriber count, with additional features unlocked at higher tiers.
Constant Contact: Provides tiered pricing with various features to support growing businesses.
Sendinblue: Known for its flexible pricing and comprehensive features.
GetResponse: Offers scalable plans that cater to businesses of all sizes.
Is Per User Pricing Right for Your Business?
The suitability of per user pricing depends on several factors, including the size of your subscriber list, your growth trajectory, and your budget. If you have a small but engaged subscriber base, this pricing model can be highly cost-effective. However, for businesses with rapidly growing lists or a significant number of inactive subscribers, it may be worth considering alternative pricing models or regularly cleaning your email list to ensure cost-efficiency.