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Software vs. Services
Which one is right for you?

When assessing permission email marketing solutions, you’ll find two camps: purchasing a software  solution or paying ongoing fees to rent an email service. Here’s a quick look at the advantages and disadvantages of each:

Software (in-house) Services (outsourced)
Advantages:

Never pay recurring fees, just buy it once. This saves a tremendous amount of money over time, especially for larger, more frequent email campaigns. The more you want to keep in touch with your customers, prospects, members and readers via email, the more money this saves you.

Unlimited use. Supports unlimited number of lists, unlimited subscribers, unlimited databases, unlimited campaigns, unlimited mailings.

Keeps your database updated with subscriber actions (clicks, unsubscribes, etc.) in real time, with no importing or exporting required. Works with Access, SQL, MySQL, Oracle and many more.

Total control: you control the messages, the data interaction, the list segmentation, the timing, the reports… everything. It’s all at your fingertips, and you don’t have to rely on someone else to do the job for you.



Disadvantages:


• Uses your own bandwidth.

• Requires you to maintain the PC or server on which the software is running.

• Requires you to maintain your own mail server (SMTP server) or coordinate with your ISP to use theirs. Of course, you already have a mail server, so this is usually not a big factor.

Advantages:

• An easy way to offload the full project and let someone else deal with it.

• Uses the service provider’s bandwidth, not yours.

• Service providers usually offer advice and campaign strategy along with email services.

• If you don't wish to control your email campaigns, you can let someone else control them for you.















Disadvantages:


• Significant data security risk because you have to export and send your valuable customer database to someone else. What's their security like?

Difficult to synchronize your data because bounces, unsubscribes, clicks and other actionable events are recorded in the service provider’s database, not yours. To be accurate, you have to synchronize the data, which takes time and can introduce errors.

• The more you use the system, the more you are financially punished for doing so. Expect to pay fees for every email campaign you send, plus extra for high-volume campaigns.

• Significant blacklist threat: if just one customer of the service provider sends a spam message, the entire service provider can be blacklisted from AOL, Hotmail, Yahoo, MSN and other providers, causing your email to be blocked also.

Frustrating delays: your email campaigns take longer to send because you have to coordinate with the service provider, upload your data, transfer the message, etc.

Join the crowd: when you use pre-built email newsletter templates and graphics offered by email services, your email looks essentially the same as a thousand other company emails.

Price increase risk: if their email service prices go up, you have to pay. You're trapped in a closed system that will require a tremendous effort to rebuild with a different service provider.

Loss of direct control: for many services, someone else maintains and manages your email campaigns for you. Do you really want someone else in control of the messages your most valued customers are reading?

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