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Shared vs Private Email Infrastructure: Analysis

Your email infrastructure determines whether your messages land in inboxes or spam folders. Choosing between shared and private email setups depends on your goals, budget, and technical resources. Here’s a quick breakdown:

  • Shared Infrastructure: Affordable, easy to set up, and managed by providers. Great for small businesses or lower email volumes but carries shared risks (e.g., reputation issues from other users).
  • Private Infrastructure: Offers full control, stronger security, and better for high-volume senders. However, it’s expensive, complex, and requires technical expertise.

Quick Comparison

Feature Shared Infrastructure Private Infrastructure
Cost $3.50–$4.50 per mailbox/month $1,200+ setup, $80,000–$100,000/year admin costs
Setup Complexity Minimal - provider handles everything High - requires expertise and time
Sender Reputation Shared - impacted by others Full control - build from scratch
Scalability Easy - provider manages growth Complex - manual scaling required
Security Limited - depends on provider Complete control
Deliverability Immediate boost but shared risks Must build trust with ISPs
Best For Small businesses, startups, low email volumes High-volume senders, regulated industries

Bottom Line: Start with shared infrastructure for simplicity and cost savings. Move to private infrastructure if you need full control or handle sensitive data. Always prioritize deliverability and compliance to maximize your email campaigns.

1. Shared Email Infrastructure

Shared email infrastructure works like a co-working space for email campaigns. Instead of maintaining your own servers and IPs, you share resources such as IP addresses and server space with other users. This setup is an affordable way for businesses to scale their cold email efforts without hefty upfront costs. By leveraging an established network trusted by providers like Gmail, Outlook, and Yahoo, you can hit the ground running without worrying about building trust from scratch.

IP Management

With shared email infrastructure, IP management is a group effort. You share IP addresses with other senders, meaning everyone’s behavior impacts the collective reputation. The good news? These IPs are usually pre-warmed and already have strong relationships with Internet Service Providers (ISPs). This eliminates the time-consuming process of building reputation on new IPs. However, there’s a downside: if another user on the shared IP sends spam or emails unverified lists, it can hurt deliverability for everyone using that IP.

Deliverability

One of the biggest perks of shared email setups is the immediate boost in deliverability. Since the shared IPs are already trusted by major email providers, your emails are more likely to land in inboxes right away. To keep deliverability rates high, stick to best practices: keep spam complaints below 0.01%, bounces under 1.0%, open rates above 33%, and click rates over 1%. That said, the shared nature of the setup means your deliverability can still be impacted by the actions of others.

Cost

Cost is where shared email infrastructure really shines. By splitting hosting fees across multiple users, this option is far more budget-friendly than maintaining a dedicated system. For example, Primeforge offers shared infrastructure at just $3.50–$4.50 per mailbox per month, which is significantly cheaper compared to services like Google Workspace or Microsoft 365 that can cost over $1,200 per month at scale. Many shared plans even bundle traditional email hosting at no extra charge, making it an economical choice for businesses.

Scalability

Scaling is a breeze with shared email infrastructure. Service providers handle the technical challenges of scaling, so you can focus on your campaigns instead of worrying about server management. This setup lets you grow quickly without risking your domain’s reputation. Many providers also take care of key technical details like setting up email authentication protocols (SPF, DKIM, DMARC) and custom tracking domains. They even offer tools to warm up new accounts and spread sending across multiple domains to minimize risk. For businesses needing to launch campaigns within hours - not weeks - this flexibility is a major advantage.

Next, we’ll dive into private email infrastructure to explore how it compares to shared setups.

2. Private Email Infrastructure

Think of private email infrastructure as owning your own building instead of renting an office in a shared space. With a dedicated email server system, you gain complete control over your email communications - everything from configuration to storage and security is in your hands.

Unlike shared email services, where you depend on third-party providers, private servers put you in charge. The biggest perk? You control your data at rest. But with great control comes greater responsibility, as managing such a setup requires more operational effort.

IP Management

When you operate a private setup, you’re in charge of managing your sender reputation through dedicated IP addresses. This control ensures that your reputation isn’t influenced by other users, but it also means starting from scratch. Building trust with Internet Service Providers (ISPs) requires warming up new IPs gradually to establish a positive reputation. For cold email campaigns, it’s a good idea to use separate IPs and domains to safeguard the reputation of your primary infrastructure. However, this level of control also introduces unique challenges in maintaining deliverability.

Deliverability

Private email infrastructure faces specific deliverability hurdles that shared services often avoid. When starting with fresh IPs and domains, mailbox providers may initially approach your emails with caution, leading to lower deliverability rates until trust is earned. Success hinges on proper setup and diligent upkeep, such as implementing authentication protocols like SPF, DKIM, and DMARC, and actively monitoring your sender reputation. Carin Slater, Manager of Lifecycle Email Marketing at Litmus, puts it this way:

Deliverability is a measure of the health of your email marketing program, so it's important to do regular check-ups on your domain, IP, and authentication in particular to make sure you're up-to-date, just like how we all go to the doctor each year.

Cost

Running a private email infrastructure is a significant financial commitment. Initial setup costs start around $1,200, and ongoing expenses - like high-bandwidth internet and salaries for email administrators (ranging from $80,000 to $100,000 annually) - quickly add up. Compare this to shared options, such as Primeforge, which charges $3.50–$4.50 per mailbox per month, or Amazon SES, which costs just $0.10 per 1,000 emails. Beyond the price tag, scaling private infrastructure introduces its own set of challenges.

Scalability

Scaling a private email system isn’t as straightforward as with shared services, where the provider handles growth. Here, you’re responsible for everything - server administration, networking, security, and beyond - as your email volume increases. This requires expertise in server security, maintaining a strong mail server reputation, and managing anti-spam measures. You’ll also need to juggle multiple IPs, ensure compliance with regulations, and perform ongoing maintenance. While this setup allows you to customize your email operations to your exact needs, the resource demands and technical complexity make it a better fit for large enterprises with dedicated IT teams.

For organizations prioritizing control, privacy, or custom security features, private email infrastructure can be worth the investment - despite its higher costs and complexity.

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Advantages and Disadvantages

Deciding on your email infrastructure comes down to balancing control, convenience, cost, and customization. Each option - shared or private infrastructure - offers its own set of perks and challenges that can significantly influence your email strategy.

Feature Shared Infrastructure Private Infrastructure
Cost $3.50–$4.50 per mailbox monthly (Primeforge) $1,200+ initial setup, plus $80,000–$100,000 annually for an email admin
Setup Complexity Minimal - handled by the provider High - requires technical expertise and time
Sender Reputation Shared risk - impacted by other users' practices Full control - requires building reputation from scratch
Scalability Easy - provider manages growth automatically Complex - requires manual scaling and additional resources
Maintenance Managed by the provider - minimal involvement Fully your responsibility - requires ongoing management
Security Control Limited - depends on provider’s measures Complete control over security protocols and data handling
Deliverability Benefits from established reputation but shared risks Requires building trust with ISPs over time
Volume Requirements Suitable for varying volumes Best for sending at least 300,000 emails monthly

Let’s break this down further to help you make an informed decision.

Cost and Setup Complexity

Shared email services are budget-friendly, costing less than $5 per mailbox per month. In contrast, a private setup demands a significant upfront investment and ongoing expenses, including hardware, software licenses, and a dedicated email administrator. This makes shared infrastructure the go-to choice for businesses looking for affordability and simplicity, as providers handle the technical setup for you.

On the other hand, private infrastructure requires a deeper commitment. You’ll need technical expertise to configure and maintain the system, which can be a hurdle for smaller teams or businesses without dedicated IT resources.

Sender Reputation and Deliverability

When using shared infrastructure, you benefit from the provider's established sender reputation. However, this also means your deliverability can be affected by other users' practices. For instance, if another user on the shared IP has a high complaint rate, it could impact your email campaigns. Keeping the complaint rate below 0.1% (1 complaint per 1,000 emails) is crucial and often more challenging in a shared environment.

Private infrastructure gives you complete control over your sender reputation, but it’s not without its challenges. You’ll need to actively build trust with Internet Service Providers (ISPs) and establish a solid reputation from scratch. This can be particularly tough for businesses that don’t send at least 300,000 emails monthly, as higher volumes are usually required to build a reliable IP reputation.

Maintenance and Security

One of the biggest advantages of shared email services is the reduced technical burden. Providers handle everything from server security to anti-spam measures and compliance protocols. This hands-off approach makes shared services ideal for businesses without the resources to manage these tasks in-house.

For industries dealing with sensitive data - like finance or healthcare - private infrastructure offers greater control over security and compliance. However, this control comes with added responsibility. You’ll need to implement and maintain robust security measures yourself, which can be resource-intensive.

Scalability

Shared infrastructure is designed to grow with your needs automatically. Whether your email volume increases gradually or spikes unexpectedly, the provider handles the scaling for you. Private setups, however, require manual scaling. This means investing in additional hardware, expanding your technical team, and dedicating more resources as your email needs grow.

Bottom Line

Your choice between shared and private infrastructure hinges on your business needs and resources. Shared services provide affordability, ease of use, and solid deliverability for businesses with lower email volumes. Private infrastructure, while more resource-intensive, offers unmatched control and security - making it a better fit for high-volume senders or businesses in regulated industries. Each path has its trade-offs, but understanding these factors will help you build a reliable email strategy tailored to your requirements.

Conclusion

Deciding between shared and private email infrastructure comes down to your business size, email volume, budget, and risk tolerance. With data showing that only 1 in 40 cold emails avoids spam, your infrastructure choice plays a major role in your campaign’s success.

Shared infrastructure is a great option for businesses looking to save on costs. Platforms like Primeforge, offering mailboxes for $3.50–$4.50 per month, provide an economical solution with a pre-established sender reputation. This option is particularly effective for smaller email volumes, letting you focus on crafting strong content and strategies without worrying too much about technical setup.

On the other hand, private infrastructure gives you full control over your sender reputation and deliverability. This is especially important if email is a critical revenue channel for your business. As Jeremy Chatelaine from Quickmail puts it:

If your cold emails don't reach your prospects' inboxes, your campaign won't generate the results you want it to.

Regardless of your choice, safeguarding your primary domain is essential. Use secondary domains for outreach and implement email authentication protocols like SPF, DKIM, and DMARC. And don’t forget: high-quality, personalized content that genuinely resonates with recipients is key.

Start with shared infrastructure if your budget is tight, but as your email volume grows, consider transitioning to private infrastructure. Always prioritize deliverability over cost - because if your emails don’t land in inboxes, even the best campaign won’t succeed.

Finally, keep a close eye on performance metrics, maintain clean email lists, and comply with regulations like CAN-SPAM. Whether you go with shared or private infrastructure, these practices will help you get the most out of your email campaigns and build stronger connections with your audience.

FAQs

What should I consider when choosing between shared and private email infrastructure?

When deciding between shared and private email infrastructure, weighing factors like cost, deliverability, security, and control is key. Shared services, such as Google Workspace or Microsoft 365, are often more budget-friendly and straightforward to manage. These qualities make them a great fit for small to medium-sized businesses. However, since these services rely on shared IP addresses, email deliverability can sometimes take a hit if other users on the same IP damage its reputation.

On the flip side, private email infrastructure comes with dedicated IP addresses, giving you greater control over deliverability and stronger security measures. This option is better suited for larger organizations or businesses with specific requirements but demands more resources for both setup and ongoing maintenance. Be sure to evaluate your budget, team size, and email marketing objectives to determine which approach best meets your needs.

What steps should a business take to switch from shared to private email infrastructure as their email needs grow?

To shift from a shared email setup to a private one, the first step is to assess your current email usage and future needs. Make sure the private infrastructure can manage larger volumes, enhance email deliverability, and provide features like dedicated IP addresses and custom domain management. This type of solution works well for businesses that need more control and room to grow.

Once you've decided to make the switch, create a detailed migration plan. Start by backing up all existing emails, configuring DNS settings, and setting up new accounts within the private system. It's crucial to establish strong security measures to protect sensitive information during the transition. After everything is migrated, keep an eye on performance metrics to fine-tune settings and verify that deliverability has improved. Following these steps will help you make the transition smoothly while boosting the effectiveness of your email operations.

How can I ensure high email deliverability when using a shared email infrastructure?

To keep your email deliverability strong in a shared environment, start by authenticating your domain with SPF, DKIM, and DMARC. These protocols build trust with email providers and lower the chances of your messages being flagged as spam.

It's also crucial to focus on your audience. Send emails to recipients who actively engage with your content - those who open, click, or reply. Make a habit of cleaning your email lists by removing inactive subscribers. Segmenting your audience to deliver personalized and relevant messages can further boost engagement and help avoid spam complaints.

By implementing these practices, you can maintain solid deliverability rates, even when using shared platforms like Google Workspace or Microsoft 365.

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