David Grant

In a word, our prices are so low because of our partnership with Amazon and other best in class email sending partners. Amazon, the online retailer, you may ask? You may know Amazon only as an online retailer but may not have known that they are also the largest provider of cloud based computing on the planet through their Web Services division. Netflix uses them to serve up billions of video streams each year. Adobe uses them, as does NASA and thousands of other companies. Amazon is a game changer: “[They] are able to build and manage a global infrastructure at scale, and pass the cost saving benefits onto you in the form of lower prices.”

In recent months, Amazon launched an interface to its email sending infrastructure for developers of apps that needed an email sending engine. With it’s massive scale it came out with prices for email sending that were orders of magnitude lower than anyone else in the industry. And its not just the price that made its offering so appealing. Amazon knows a thing or two about deliverability -it uses its proven technology to send out BILLIONS OF MESSAGES A YEAR! Wouldn’t we all be very happy to use the same email delivery system Amazon uses? Honest Mail said yes to this and built its infrastructure from the ground up, piggybacking on Amazon’s massive scale, pricing, and rock solid deliverability. Then we pass these savings onto you.

The main question we get is if Amazon’s email service is so great, why are no other email marketing service providers using it (Many other types of technology companies are)?

Here’s why:

  • Email Marketers have large infrastructure investments and multi-year commitments which they may not be able to just abandon to move to an unfamiliar third party solution.
  • Some of the larger email providers may have the scale such that their costs are in line with Amazon. It is just that they are not passing on the savings to you.
  • Most email providers do not care to compete on price as evidenced by their never having taken any steps to reduce their pricing for their customers despite favorable wholesale cost changes.
  • Amazon requires the end user to click on a confirmation email link the first time they use it to verify their account (which you will do when signing up with us). It is doubtful that an email marketing service provider wants its customers to know they are using Amazon if they are not going to pass on the savings. Also they may fear that letting the customer know that they are outsourcing this core function will reduce their value add in the mind of the customer. (This customer perception would be only partially true as Honest Mail still has to deal with significant email marketing software infrastructure despite it’s integration with Amazon.)
  • Amazon needs to build its “email reputation” in the marketplace and wants businesses to ramp up volume as opposed to sending it a huge volume of emails to send out. This is less than ideal for established players who would have huge volumes to transfer over.
  • Email Marketers have many mouths to feed. As per its annual report, one of the largest makes a 70% gross margin on its email service! It then spends most of this on marketing costs so it can fuel its growth to keep Wall Street happy. Honest mail is built lean with virtually no sales and marketing staff (but has a robust support and development department), so we can charge much lower prices.

In short many of our competitors have their head in the sand with regard to pricing as it is easier to look the other way and keep prices high regardless of favorable changes in their cost base, rather than go through what could be a painful restructuring to compete at a lower price. Honest Mail is uniquely positioned to take advantage of this structural shift in the industry. This means the same exact service you get with our competitors at half the price. So I’d like to invite you to join us and be on the leading edge of this change.
The Honest Mail Team

September 3, 2015

How are our prices so low? What are we skimping on?

In a word, our prices are so low because of our partnership with Amazon and other best in class email sending partners. Amazon, the online retailer, […]

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