How Agencies Can Earn Recurring Revenue From Email Marketing

By May 12, 2021 No Comments

Digital marketing agencies offer a wide range of services to their clients, including website design, PPC advertising, social media management, and more. But there’s another service you may not have considered offering to your clients yet. Email marketing has shown itself to be one of the most highly profitable forms of marketing for both marketing agencies and their clients.

In this guide we’ll give you an exciting look at how agencies can earn recurring revenue from email marketing.

Email marketing is what your clients want

When a client comes to your digital marketing agency for help, they want an integrated service offering that’s going to get them results. They also want value for money. Offering email marketing as a service gives them exactly what they’re looking for.

Email marketing has an amazingly high ROI.

The average ROI for email marketing in 2019 was $42 for every dollar spent (Litmus). This makes it a remarkably cost-effective marketing tool, which brings huge value to clients and therefore your agency.

Email marketing has a larger reach than social media marketing.

Email is a part of day-to-day life for almost anyone. In 2020 there were 4 billion email users around the world according to Statista, and by 2025 it’s predicted that there will be 4.6 billion. That means there’s no marketing channel with a wider reach than email marketing.

Email marketing gets your clients’ messages seen.

The average open rate for emails in 2020 was 20.56% (Kinsta). If that doesn’t sound like a very good chance of getting your message seen, take a look at the numbers for social media. In 2020 the average engagement rate on Facebook was just 0.27%, while for Twitter it was a mere 0.07% (SocialInsider).

Growth chart - Photo by Kindel Media from Pexels

Email marketing is profitable for your agency

When you’re running a digital marketing agency, you lose a lot of time and money into searching for new clients. A lot of the work that clients bring you is project-based, so there’s always a constant need to keep new clients coming in.

Email marketing opens up the possibility of keeping clients around for longer. You can grow your relationship with your clients and offer them ongoing value that results in ongoing profit for your agency.

Adding email marketing as a service offering is an easy process, because your marketers already bring to the table all the skills you need. Their existing skills in marketing strategy, content creation and design will result in awesome email campaigns.

Ongoing client relationships mean your agency will have recurring revenue coming in, so you can spend your time focusing on getting billable work done.

How to package and sell your email marketing services

There are 2 ways you can package and sell email marketing services to create recurring revenue for your agency.

1. Reselling email marketing tools

Some email marketing tools like Cakemail give you the opportunity to white label their product and make it your own, allowing you to offer it to your clients as a service you provide.

With this option you can charge your clients monthly for access to an easy-to-use, highly functional email marketing tool, which they can use to manage their contact lists, send email campaigns and view reports.

2. Offering full-service packages

Your second option is offering your clients a full service package, where your agency takes care of every aspect of the email marketing campaigns for them.

With this kind of package your agency would set up the client’s account, strategize the campaigns, create the content of the emails, and send the emails out.

You can charge a monthly fee for your full-service packages, which secures ongoing, recurring revenue that your agency can depend on.

Ways your agency can add value to email marketing services

Here are the ways you can add value to the service:

1. Create an email marketing strategy

Your marketing team can sit down with the clients and develop an effective strategy for the email marketing campaign. Your client’s goals might be to convert leads into customers, to build brand awareness, or to drive more sales from existing customers.

Based on the client’s goals, your marketing team will choose what type of campaign to create. If the client wanted to nurture their leads, for example, you could create an ongoing newsletter with helpful tips that match their interests.

The skills that your marketers already have will fit in perfectly with offering email marketing services to your clients, allowing you to charge a higher fee.

2. Plan, design and create the content

Next, your marketing team would plan the best kind of content to use for the particular campaign in order to get the best results.

Content strategy, design and writing would all come into play, to create a series of emails that are consistent, attractive and catchy.

3. Set up automation

You can optimize your operation by intelligently automating your email marketing campaigns with email marketing tools. This feature means you can send the right emails to the right audiences at the right times.

You might automate a welcome email that makes customers feel special when they first subscribe to the mailing list or have automated follow-up after a client contacts the client’s website to get information about a product or service. Those emails can be directly connected to your clients’ online shop or their CRM tool through an API

Email marketing is a lucrative service for your digital marketing agency to offer. It drives revenue for your agency while driving results for your clients.

Cakemail allows you to resell their email marketing tool as your own, the way you want it, while you take all the credit and add your own expertise. Try it free today or contact us to discuss your projects!

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Author Steve Smith

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