Email Platform Pricing Models: What SaaS Companies Should Know

Email platform pricing can be confusing. Some charge by subscribers, some by emails sent, some by both. Hidden costs lurk in feature tiers and overage charges. This guide breaks down pricing models so you can estimate real costs and avoid surprises.

Pricing Models Explained

Subscriber-Based Pricing

You pay based on the number of contacts in your database, regardless of how many emails you send.

Examples: Mailchimp, ConvertKit, ActiveCampaign

Pros:

• Predictable costs if your list grows slowly
• Send unlimited emails to each subscriber
• Simple to understand

Cons:

• Pay for inactive subscribers
• Costs jump at tier thresholds
• Penalizes large, low-engagement lists

Email-Based Pricing

You pay for each email sent, regardless of how many subscribers you have.

Examples: Amazon SES, SendGrid (basic plans), Mailgun

Pros:

• Pay only for what you use
• Large subscriber lists don't cost more if you email infrequently
• Often cheaper at scale

Cons:

• Costs vary month to month
• High-frequency sending gets expensive
• Hard to budget precisely

Hybrid Pricing

Base price includes certain limits on both subscribers and emails, with overages charged separately.

Examples: Customer.io, Braze, many enterprise platforms

Pros:

• Balances predictability with usage-based costs
• Often includes more features in base price

Cons:

• More complex to understand
• Overages can surprise you
• Need to track multiple metrics

Flat Rate Pricing

Fixed monthly price with generous or unlimited limits.

Examples: Sequenzy, some startup-focused platforms

Pros:

• Completely predictable costs
• No surprise overages
• Scale without worrying about costs

Cons:

• May pay for capacity you don't use
• Still have upper limits at some point

Hidden Costs to Watch

Feature Gating

Many platforms restrict key features to higher tiers:

• Automation/sequences (often mid-tier and up)
• A/B testing (varies widely)
• Advanced segmentation (often premium)
• API access (sometimes restricted)
• Custom domains (extra cost at some platforms)

The "affordable" plan might not include features you need. Always check what's included at each tier.

Overages

What happens when you exceed limits?

• Some platforms auto-upgrade you to a higher tier
• Others charge per-email or per-subscriber overages
• A few simply stop sending until you upgrade

Understand overage policies before you sign up. A successful campaign could cost more than expected.

Add-ons

Common extras that add cost:

• Dedicated IP addresses
• Premium support
• Additional team seats
• Extended data retention
• Integrations (some charge per integration)

Pricing by Platform Category

Developer-First Platforms

SendGrid, Mailgun, Postmark, Resend, Amazon SES

• Typically email-based pricing
• Low per-email costs ($0.50-$2 per 1,000)
• Limited marketing features
• Best for transactional email at scale

SaaS-Focused Platforms

Sequenzy, Customer.io, Userlist, Loops

• Often hybrid or flat-rate pricing
• $50-500/month typical range
• Lifecycle features included
• Built for SaaS use cases

Marketing Platforms

Mailchimp, ConvertKit, ActiveCampaign

• Usually subscriber-based
• Starts cheap, scales expensive
• Many features, not all SaaS-relevant

Enterprise Platforms

Braze, Iterable, HubSpot

• Custom pricing (often $1,000+/month)
• Annual contracts typical
• Comprehensive features
• Dedicated support included

Estimating Your Costs

To estimate email platform costs, gather these numbers:

Current State

• Total subscribers/contacts
• Monthly email volume
• Transactional vs marketing split
• Expected growth rate

Future State

Project 12-24 months out:

• Subscriber growth (be realistic)
• New sequences you'll add
• Increased sending frequency

Calculate at Multiple Points

Don't just look at today's costs. Calculate:

• Cost today
• Cost at 2x current scale
• Cost at 5x current scale

Some platforms that seem cheap today become expensive at scale. Others have economies of scale that reward growth.

Platform Pricing Comparison

Typical costs for a SaaS with 5,000 subscribers sending 50,000 emails/month:

• Sequenzy: ~$79/month (flat rate with generous limits)
• Customer.io: ~$150/month (depends on usage)
• Mailchimp: ~$100/month (subscriber-based)
• Loops: ~$99/month (subscriber-based)
• SendGrid: ~$20-50/month (email-based, basic features)
• Postmark: ~$50/month (email-based)

Prices vary by exact features needed. Always get quotes for your specific situation.

Negotiating Enterprise Deals

For larger deployments:

• Ask about annual discounts (typically 10-20%)
• Negotiate overage rates
• Request pilot/trial periods
• Bundle features rather than paying add-on costs
• Get pricing in writing before signing

Choosing Based on Value, Not Just Price

The cheapest platform isn't always the best value. Consider:

• Time saved: Native integrations vs custom webhooks
• Features included: What you'd pay extra for elsewhere
• Revenue impact: Better sequences drive more conversions
• Support quality: Faster resolution = less downtime

Sequenzy offers transparent pricing with native Stripe integration included - features that cost extra or require custom development on other platforms.