Buying
SendGrid Pricing: A Comprehensive Guide
Explore SendGrid pricing plans, including Email API and Marketing Campaigns. Discover key features like analytics, automation, and deliverability optimization.
Published on:
September 26, 2024
Ajay Ramamoorthy
Senior Content Marketer
Karthikeyan Manivannan
Visual Designer
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SendGrid is an SMTP (Simple Mail Transfer Protocol) service provider; freeCodeCamp sends Quincy's weekly newsletter over this service. Like many SMTP providers, it also provides the option to send emails via its mail servers. This is a great alternative when sending a lot of emails per month because doing it by hand would take a lot of time and energy.

How Much Does SendGrid Cost?

SendGrid’s pricing typically ranges from $30,000 to $150,000 annually, depending on the volume of emails per month and the specific services a business requires. The cost structure is based on usage, including the number of emails sent, API integrations, and additional features like email validation or dedicated IP addresses. SendGrid offers flexible, tiered pricing models, allowing businesses to select the services they need, such as email marketing campaign management, transactional emails, or email automation. For more accurate pricing, businesses can use SendGrid’s pricing calculator to customize estimates according to their email volume and service needs.

Plans Offered by SendGrid

SendGrid offers two types of plans named Email API and Marketing Campaigns:

Plan Name Monthly Price Email Volume Key Features Support
Free (Email API) $0/mo 100 emails/day Analytics & deliverability optimization, No dedicated IPs, No subuser management None
Essentials (Email API) $19.95/mo 50,000 - 100,000 emails/mo Analytics & deliverability optimization, No dedicated IPs, No subuser management, 2 event webhooks None
Pro (Email API) $89.95/mo 100,000 - 2,500,000 emails/mo Analytics & deliverability optimization, Dedicated IPs, Subuser management, SSO, 5 event webhooks, 2,500 email validations Ticket, chat, phone
Premier (Email API) Custom Pricing Custom Custom plan with all features like dedicated IPs, subuser management, SSO, 5 event webhooks, 5,000 email validations Custom Support

How to Get a Better Deal on SendGrid?

SendGrid offers email delivery services with various pricing tiers based on volume. Here are some tips to get better pricing.

Leverage Volume Discounts

SendGrid offers volume pricing, so the more email program you send, the lower your rate. Calculate your expected monthly email volume and choose the highest pricing tier you'll fit in to get the lowest rate per email.

Negotiate an Annual Plan

It provides discounts for signing up for an annual plan rather than paying month-to-month. Committing to a year can reduce your overall costs by 10-20%. Contact their sales team to negotiate the best possible rate on an annual subscription.

Take Advantage of Promotions

It occasionally offers promotions, especially around major shopping holidays. Check their website and sign up for email API notifications to receive coupons for percentage discounts that you can apply to your subscription fees. Timing your signup or renewal around these can lead to major savings.

Use Coupon Codes

SendGrid periodically offers coupon codes for percentage discounts off initial sign-ups or first-month services. Search online for the latest SendGrid promo codes before signing up to save. Stacking these with other deals can lead to even bigger savings.

Pay Upfront

If cash flow allows, consider paying for 6 or 12 months of SendGrid service upfront to lower the monthly cost. This allows you to buy in bulk faster than paying monthly.

SendGrid Core Features

Here are the core features of SendGrid:

Deliverability

SendGrid has a world-class deliverability rate in the inbox. They optimize every email's popular content, structure, and sending practices to improve deliverability through proprietary algorithms and anti-spam tools.

Automation

SendGrid offers robust workflow automation for sending targeted and personalized emails via triggers and funnels without needing code. This saves huge time over manual email infrastructure campaigns.

Analytics

Detailed real-time analytics and historical email program analytics allow you to dig deep into metrics like opens, clicks, unsubscribes, spam reports, spam folder,  devices, locations, and more to optimize future email performance.

API Integration

SendGrid provides flexible APIs and webhooks to integrate their email functionality into any app or platform. You can automate workflows or access email data for custom processes.

Email Activity Feed

Their activity feed acts like an email CRM, allowing you to track contacts and see all their email engagement history in one place for more personalization.

A/B Testing

Easy built-in A/B testing lets you send test email addresses to smaller groups to optimize your email popular content and formatting before wider sends. This helps maximize engagement.

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SendGrid Alternatives

Below are some of the SendGrid alternatives:

Postmark

Postmark has provided exceptional transactional email delivery since 2009. In 2020, they expanded into promotional and bulk email on separate infrastructure so deliverability and inbox placement remain reliable for all email types. Unlike competitors, Postmark does not charge extra to fix deliverability problems.

DuoCircle

DuoCircle provides excellent email deliverability and support services at competitive pricing plans. Key features include analytics, encryption, multi-port delivery, and anti-spam protection to maintain email continuity. With 24/7 customer support via email, chat, and phone, it's a great SendGrid alternative for enterprises needing a budget-friendly, full-featured email solution.

Mailgun

Mailgun, acquired by Pathwire and Sinch in 2021, remains a popular SendGrid alternative among developers for its easy API integration. Now part of a larger services ecosystem that includes verification and deliverability tools, Mailgun stands on its own but sells access to those additional tools separately. The acquisitions brought more capabilities under one roof.

Constant Contact

Constant Contact combines email marketing, automation, and list-building into an easy-to-use SendGrid alternative perfect for eCommerce beginners. Even basic plans offer unlimited emails and a drag-and-drop editor to personalize messages and resend them automatically if recipients don't engage initially. This focus on driving engagement through personalization and behavior analysis makes it a great starting choice.

How Spendflo Can Help You Get Better Deals on SendGrid

Spendflo helps businesses streamline their SendGrid contracts by offering strategic insights and cost-cutting strategies. Here's how:

Usage Benchmarking

Spendflo evaluates your SendGrid usage and compares it to similar organisations, identifying any areas where spending can be reduced. This helps you make data-backed decisions during negotiations.

Professional Negotiation Support

Armed with a deep understanding of SendGrid’s pricing plans structures, Spendflo’s experts work directly with SendGrid to negotiate better terms, ensuring your business secures the most competitive rates based on your actual usage.

Ongoing Optimization

Spendflo continuously monitors your SendGrid usage, identifying new opportunities for savings. Spendflo ensures that your pricing is adjusted accordingly as your business needs shift, driving long-term cost efficiency.

Compliance Reviews

Spendflo regularly audits your SendGrid usage and services to prevent overpayments or unnecessary expenses and ensure that you pay for what you use.

With Spendflo’s market expertise and continuous oversight, businesses can maximize their SendGrid investment while maintaining budget control.

Frequently Asked Questions on SendGrid Pricing

How much does SendGrid cost?

SendGrid's pricing typically ranges from $30,000 to $150,000 annually, depending on the volume of emails sent and the specific services required. Costs scale based on usage including the number of emails sent, any additional API integrations, dedicated IP addresses, and advanced features like email validation tools or marketing campaign management.

What factors determine how much SendGrid costs?

SendGrid pricing is based on email volume, additional services like dedicated IP addresses, and the selected plan tier. Higher tiers have higher limits and more features.

Does SendGrid offer volume discounts?

Yes, SendGrid offers discounted rates at higher monthly email volumes. Sending more emails can significantly reduce your effective rate per email.

Is there a free SendGrid plan?

SendGrid offers a free plan for up to 100 emails per day. This allows very basic email sending to test the service. Volume and features are extremely limited.

Does annual billing save money with SendGrid?

Paying annually rather than monthly provides a 10-20% discount on SendGrid plans. This can add up to major savings over the course of a year.

Need a rough estimate before you go further?

Here's what the average Spendflo user saves annually:
$2 Million
Your potential savings
$600,000
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