Understanding the true cost of outbound email at scale
At FirstQuadrant, we’re not a traditional outbound email tool — we don’t manage deliverability or infrastructure. But many users still run outbound campaigns through the platform, and there’s a common misunderstanding we often see: the belief that outbound is basically free. It’s not. Once you scale beyond small batches, the costs begin to stack up quickly. Below is a breakdown of the main cost components to help you plan more effectively.
Need help with the numbers?
We’ve put together a Google Sheets calculator to help you estimate costs based on your own assumptions. To access it, reach out to our team:
https://docs.google.com/spreadsheets/d/1ij6rc6sgVrjqXRXndgNULbyNaZT-bPVaEs-oMdG2HBU/edit?usp=sharing
Mailboxes
Most people don’t realize that for inbox placement, you can’t send more than ~20 cold emails per day per mailbox. So if your goal is to send 20,000 emails per month, you’ll need around 40 individual mailboxes.
- These must be real Google or Microsoft Workspace accounts — aliases and SMTP services like SendGrid won’t work.
- Expect to pay roughly $7/month per mailbox.
- Tools like Zapmail can help automate and reduce the cost of setting up these mailboxes in bulk.
Domains
You should avoid using more than 3–4 mailboxes per domain to maintain a good sending reputation.
- With 40 mailboxes, you’ll need at least 10+ domains, each costing around $1–2/month.
- Never use your primary business domain for outbound — if it gets flagged or blocked, your main email operations could be affected.
Warming
New mailboxes need to behave like real inboxes before sending cold emails — this includes sending, receiving, and replying to emails over time.
- Some tools like Instantly offer unlimited warming for a flat rate (e.g. $100/month).
- Others like Mailreach or Warmup Inbox charge per mailbox (around $20/month per inbox).
- For 40 mailboxes + backups, warming can easily exceed $1,000/month.
Mailbox rotation
Even warmed inboxes will occasionally get flagged. When this happens, you’ll need to pause and rotate in backups.
- We recommend having 20–30% extra mailboxes warmed and ready.
- This adds cost, but it’s necessary to ensure uninterrupted sending.
Sequencing tool
You’ll need software to manage sequences, follow-ups, delays, and reply logic.
- Tools like Apollo or Reply start at around $150/month and scale based on usage.
- FirstQuadrant can also handle this part if you’re already using the platform — it’s not positioned as a sequencing tool, but it integrates well for teams looking to centralize operations.
Prospecting and enrichment
- For broad outreach, tools like Apollo data (around $0.05/contact) might suffice.
- For more targeted efforts, enrichment tools like Clay can cost anywhere between $0.10–$0.80/contact.
- Don’t forget email verification if you’re sourcing raw data.
FirstQuadrant includes built-in prospecting features and AI-powered lead scoring to help you prioritize the right leads and avoid wasted spend.
Example breakdown
Let’s say you want to reach out to 5,000 new contacts per month with 3–4 follow-ups. That’s about 20,000 emails/month.
Here’s a rough cost estimate:
| Component | Estimated Monthly Cost |
|---|---|
| Mailboxes (40) | $280 |
| Domains (10+) | $10–20 |
| Warming (40–50 boxes) | ~$1,000 |
| Sequencing tool | ~$150 |
| Prospecting/enrichment | ~$500+ |
| Total | ~$2,000/month |