Are you considering investing in an SMTP server to grow your business, but need help?
This article discusses the basics of buying an SMTP server and compares the top providers to help you make an informed decision.
Key Features of SMTP Servers Explained
An SMTP server is used for bulk emails such as marketing promos, news bulletins, and transactional emails including order confirmations. It ensures the correct transmission of outgoing messages, proper routing channels, and accurate mail delivery to recipients’ inboxes. It helps manage high email volumes, provides secure communication between its clients, and prevents spam.
What features do SMTP servers have that make them popular among email marketers?
Here are some of them:
- API Support: Application Programming Interface (API) support enables seamless integration of SMTP servers with other applications and systems. It speeds up sending emails, fortifies email security, and automates email workflows.
- Bulk Email Capabilities: SMTP servers provide the technical infrastructure for managing the quick and timely sending of a high volume of emails to multiple addresses.
- Domain Authentication: Domain authentication verifies the domain’s ownership to protect the sender and recipients from online fraud. Authentication is usually done through domain name system (DNS) records. SMTP-related domain authentication features include:
- Domain Key Identified Mail (DKIM): DKIM is a digital signature that validates an email’s authenticity, preventing spammers from domain spoofing.
- Sender Policy Framework (SPF): With SPF, the receiving email server can validate the authenticity of the source of the incoming mail. Thus, spoofers are stopped from misusing authorized domains.
- SMTP Authentication (SMTP AUTH): SMTP AUTH screens the email senders and allows only those authorized to send messages.
- SMTP Relay: SMTP Relay is a third-party service provider that allows you to send emails using its servers and domains. It manages your emails by categorizing them into internal communications and marketing emails, and ensuring that they are securely transmitted to their intended recipients.
Tip: Buying an SMTP server is not your only option. Always ask yourself if you really need to buy one.
Types of SMTP Server: Pros and Cons
There are four types to choose from. Select the most suitable for your business.
a. Cloud-Based SMTP Server
It refers to a virtual server on cloud infrastructure managed by a third-party provider, e.g., AWS, and is ideal for organizations with fluctuating email volume requirements This server type may be shared or dedicated.
Pros:
- Flexible and scalable
- More economical: you only pay per use.
- Highly available data for users, because cloud servers typically have multiple data centers
- More time to focus on your email marketing strategy, while the provider takes care of the infrastructure
Cons:
- Slow email delivery during peak times due to heavy network traffic
- Security risks because of shared IPs to reduce costs
- Data security and compliance risks when working with a third party for email infrastructure
b. Dedicated SMTP Server
This server type is exclusive to your business, meaning you don’t share resources or IP addresses with other clients. It is best for companies that require greater control over email settings, e.g., e-commerce sites, and high-volume email senders. Dedicated servers are often used for email marketing, transactional emails, and time-sensitive communications where delivery speed and reliability are crucial.
Pros:
- Better deliverability because you have full control of its use and settings.
- Customizable security settings
- More efficient management of large email volumes
Cons:
- More expensive as you shoulder the following:
- All the server’s maintenance and operation costs
- Investment in IT expertise to manage the configuration, software updates, and server maintenance.
c. On-Premises SMTP Server
This is a physical server located within your business’s facilities and perfect for government institutions, highly regulated industries requiring tight data control, and large enterprises with large volumes of emails and an in-house, dedicated IT infrastructure.
Pros:
- High level of control and security because email data is internally managed
- May be configured to suit your needs
Cons:
- Big investment to purchase and set up
- Ongoing high maintenance costs
- Pricey hardware updates
- Need for IT expertise for periodic monitoring and troubleshooting.
d. Shared SMTP Server
This is a server type with multiple users sharing its resources and costs. It is ideal for startups with low to medium volumes of emails, small businesses, freelancers, and any business with minimal technical requirements.
Pros:
- Most affordable option because the costs are split among the server’s users.
- Minimal configuration is required
- Maintained by the provider
Cons:
- Restricted customization options because your configuration might affect the other users
- Email performance may be affected negatively by the limited customization options.
- Conversely, another user’s email practice may influence your deliverability.
Should You Buy an SMTP Server?
Deciding whether to buy an SMTP server comes down to your needs, budget, and how you use email. Renting a service works for many, but owning a server gives you more control. It can be a better long-term investment.
Here’s what to consider.
First, think about how many emails you send. If your email volume is low, sticking with a service provider is cheaper and simpler. But, for large campaigns, owning a server saves money. It also removes limits set by third-party services.
Next, look at data control and compliance. If you handle sensitive data or work in a regulated industry, owning a server is better. It boosts security and helps you follow privacy laws. This makes it a smart choice for the healthcare, finance, or legal services industries.
Deliverability is another key factor. With shared services, other users’ behavior can send your emails to spam. Owning your server lets you control your IP reputation. This improves inbox placement and deliverability.
Security is also a big deal. Owning the server lets you set up encryption, access controls, and custom protocols to protect your data. This is especially important if email security is a top priority.
Finally, think about cost and scalability. While buying a server has upfront costs, sending high volumes of email can save money over time. Plus, it’s easier to scale up as your business grows without worrying about service limits.
Tip! An SMTP server is best for businesses needing control, security, and flexibility. For smaller email needs, renting is often more affordable and hassle-free. Weigh your options and pick what works for your goals and budget.
Considerations for Buying an SMTP Server
Setting up an SMTP server is a big step. It affects how you manage email campaigns and transactions. Choosing the right server is key to keeping things efficient, scalable, and cost-effective.
This section aims to break it down for you. We’ll cover email volume, scalability, and costs.
| Factor | Option | Best For | Why Choose It? |
|---|---|---|---|
| Email Volume | Third-party or shared server | Less than 10,000 emails | Low cost, easy to use |
| Cloud-based or dedicated server | 10,000–100,000 emails | Secure and reliable | |
| On-premise server | Over 100,000 emails | Handles high traffic well | |
| Scalable options | Seasonal changes | Adjusts easily to your needs | |
| Scalability | Cloud-based server | Growing businesses | Simple, hassle-free scaling |
| On-premises server | Stable high volumes | Needs hardware upgrades for scaling | |
| Cost | Shared or cloud server | Small budgets | Minimal setup and pay-per-use fees |
| Dedicated server | Large-scale users | Fixed monthly plans for stability | |
| On-premise server | Long-term needs | Big upfront hardware investment |
How many emails do you send out monthly? If the volume is low, you may prefer to work with a service provider.
The number of emails you send monthly determines your purchase for a server and the server type you require.
Take a look at this general guide:
- < 10,000 emails monthly:
- Partner with a third-party service provider; or
- Use cloud-based shared servers
- Why? It is less costly and easier to manage.
- 10,000 to 100,000 emails monthly
- Use a cloud-based or dedicated SMTP server.
- Why? It ensures server security.
- 100,000 monthly
- Dedicated, on-premise resources
- Why? It enables efficient sending of emails despite the high traffic.
- Seasonal volume fluctuations:
- Select the option that allows you to scale without incurring costs.
b. Scalability and Performance
Invest your money in a scalable server. Cloud servers are easy to scale, unlike on-premises servers which require complex hardware customizations. A high-performant server can even provide real-time comprehensive analytics of your key performance indicators (e.g., click-through rates), delete invalid addresses to control bounce rate, and feature advanced tracking for campaign targeting.
c. Cost Considerations
The cost of buying an SMTP server depends on the type of server and the features that you need. These must be anchored on the volume of emails you send, the level of security, and the kind of support required.
Consider the following:
- Additional features or services. These entail extra costs.
- Fixed monthly cost vs. per-use charge Dedicated servers usually offer a fixed monthly plan based on usage, while cloud-based providers like Amazon SES charge per email.
- Setup fees Cloud-based and shared servers have minimal set-up fees, while on-premises servers require a significant investment in hardware.
Setting Up an SMTP Server
When you buy an SMTP server, setting it up right is crucial. Proper configuration ensures your emails are delivered, the server runs smoothly, and security stays strong.
Here’s a quick guide with 7 easy steps to getting it done.
1. Set up Domain Authentication
This should ensure that the emails reach your intended targets.
- SPF (Sender Policy Framework): Authorize the server’s IP address to send emails from you. Update your DNS records to improve deliverability while preventing impersonation of your email address.
- DKIM (Domain Keys Identified Mail): Create a DKIM key, then include it in your DNS records. The cryptographic signature that the DKIM uses to sign each email signifies that the email is untampered.
- DMARC (Domain-Based Message Authentication, Reporting, and Conformance): DMARC improves email authentication by building on the SPF and DKIM and verifying the email senders. It prevents cyberattackers from getting into the company’s domain to spoof its employees. You will get reports about suspicious emails attempting to spoof your addresses.
2. Establish IP Whitelist and Blacklist
Set up access control to increase security by ensuring only authorized IP addresses can access the server.
- Identify trusted IPs: Make a list of authorized IP addresses.
- Configure whitelisting: Add the list of trusted IPS to your server’s whitelist settings.
- Set up blacklisting: Configure your server to block IP addresses that are not in the whitelist or verified as spam IPs to prevent them from reaching your system.
3. Test Email Deliverability
You don’t want your emails to end up in spam folders. Send test emails to popular Email Service Providers (ESPs) like Gmail to check if they will go to the inbox or spam folder. Check your deliverability scores with tools like Mail Tester and identify areas for improvement.
4. Set Up Bounce Management
Bounce management tools clean up the mailing list by automatically removing invalid email addresses.
- Enable Automated Bounce Handling: Enable your server’s automated tools to remove undeliverable emails.
- Classify Bounces: Organize the bounces into “hard bounces”, or permanent failures, and “soft bounces”, or temporary issues. Remove hard bounces and the repeated soft bounces from the list.
5. Monitor IP Reputation
Use tools like Google Postmaster Tools to monitor your IP reputation regularly.
6. Set Up Tracking and Analytics
Enable tracking for opens, clicks, bounces, and complaints to monitor your engagement and enhance your email strategies.
- Engagement Metrics: Enable tracking for opens and clicks to analyze how the recipients react to your emails.
- Bounce and Complaint Reports: Determine and rectify deliverability issues by reviewing bounce logs and spam complaints.
- Campaign Performance Analysis: Review the built-in or external analytics to understand your email campaign performance.
7. Troubleshoot Common Issues
Once you have set up your SMTP server, you may encounter issues that disrupt email communication. Knowing how to troubleshoot these problems is key to keeping things running smoothly. Here’s how to fix some common issues:
- Authentication Issues
- Cause: Wrong encryption settings or login details.
- Solution: Check encryption protocols and ensure the username/password match the server.
- Connection Problems
- Cause: Firewall restrictions, network issues, or server overload.
- Solution: Adjust firewall settings and ensure stable network connections.
- Full or Unavailable Mailbox
- Cause: Recipient’s mailbox is full or inactive.
- Solution: Notify the recipient to clear space or increase capacity.
- Server Overload
- Cause: High traffic or limited resources.
- Solution: Adjust connection limits and use load-balancing to manage traffic.
The Best SMTP Server Providers
Using an SMTP service provider can save you time and effort. It eliminates the hassle of setting up and maintaining your own SMTP system while helping you conserve resources.
When picking a provider, look at their features, pricing, reliability, and reputation.
Here’s a quick look at three popular SMTP providers.
1. SendGrid
It is a cloud-based platform for managing emails. SendGrid is ideal for large business organizations that want a reliable partner to send transactional mail. It has a scalable, cloud-based email delivery infrastructure and 24/7 customer support. It also offers highly scalable SMTP relay services, real-time analytics, and comprehensive reports. It provides flexibility and easy integration with various APIs, automation, and CRM software.
SendGrid pricing begins with a free plan but may be upgraded to any paid plan.
SendGrid boasts 99.999% uptime and 148 billion emails processed monthly. Its membership in the Data & Marketing Association (DMA), Anti-Phishing Working Group (APWG), Email Experience Council, Messaging, Malware, and Mobile Anti-Abuse Working Group (M3AAWG), and Email Sender and Provider Coalition (ESPC) indicates SendGrid as one of the reputable service providers.
2. Mailgun
Mailgun is the most reliable email platform for thriving businesses. It features a built-in email editor, email address validation and inbox preview rendering, comprehensive documentation, simple RESTful API, and searchable logs. It also has a wide selection of configuration tools to customize email campaigns and a user-friendly UI.
Mailgun has competitive pricing plans that support high-volume sending. It starts with a free plan, which you can upgrade to the paid plan that suits you. Additional payment is charged for extra emails and validations.
It is reliable with a 99.99% server uptime, certifications in System & Organization Control (SOC) I and II, and compliance with Ground Penetrating Radar (GPR), Health Insurance Portability and Accountability Act (HIPAA), and ISO 27001.
It has a market share of 90.77% and almost 920,000 customers, including DHL, FOX, and Microsoft. However, its features can be too complex, making customers dependent on Mailgun’s support team. Users have mixed reactions toward the competence of its customer support.
3. Postmark
Postmark is an email management platform that helps businesses process, track, and simplify email delivery. Its features include comprehensive email performance monitoring, a full content 45-day history that can be customized to 365 days, and an activity feed tracking every event the message goes through.
Its pricing begins with a no-expire free developer plan, which may be upgraded to a paid plan.
Known for its high-quality service, Postmark registers a high customer happiness rating of 82%. It scored 4.9 out of 5 in GetApp and 4.6 out of 5 in G2. Postmark prides itself on easy integration with a broad range of applications, high deliverability and reliability of transactional emails, comprehensive analytics, and responsive customer support. However, for high-volume emails, Postmark can be costlier than other providers. It also has limited template customization options.
Conclusion
Buying an SMTP server is a key step to transforming your email strategy. Whether you’re a small business or a large company managing high-volume campaigns, the right choice is critical.
This guide covered key points to help you decide. We explored server features, compared options like cloud-based, dedicated, and on-premises servers, and reviewed top providers like SendGrid, Mailgun, and Postmark.
Remember!
- Your choice should match your business size, email volume, security needs, and budget.
- For smaller needs, cloud-based or shared servers are affordable and easy.
- For high-volume or sensitive data, dedicated or on-premises servers offer more control and reliability.
