Number
Email marketing is just expensive hosting of zeros and ones
Kagan estimates ESPs pay roughly $0.00015-$0.002 per email sent, and frames email companies as very expensive hosting where the real profit comes from subscribers who never send. Substack and SendFox disrupt this by making sending free and monetizing elsewhere.
$0.002
Cost to send one email · USD/email
“$0.002. It might be $0.00015 times how many subscribers, how many emails they're sending a month. The profit is all in the people who don't email. It's basically, I think of email marketing companies as very expensive hosting. You're basically paying a lot of money to host zeros and ones and digits that don't cost anything.”
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