You’ve been studying, taking down notes, and filling your toolbox. And that’s great! You’re halfway. Now it’s time to start thinking about the challenges that come with becoming an email service provider. It’s a rewarding but demanding journey, filled with both highs and lows:
Having the Right Infrastructure
The first challenge is building a robust infrastructure. This is the backbone of your service, and it needs to be strong. You’ll need servers, bandwidth, mail agents, and IP addresses, among other technical resources. Not to mention, you’ll need a team of experts to manage this infrastructure, like deciding between using open-source or cloud-source. But that’s a topic for a different conversation. We discuss it here: Open Source vs. Proprietary ESP Tools: Which One’s Right for You?.
Also, you need to consider the following: will your infrastructure be able to handle large volumes of emails? In time you’ll see how much investment and technical expertise you’ll need, depending on your needs.
Security
As an ESP, you’re sitting on a goldmine of sensitive information: email addresses, personal data, and in some cases, financial details. This makes you a prime target for cyberattacks. That’s why implementing security protocols—like encryption, two-factor authentication, and routine audits—isn’t optional. It’s survival.
Similarly, to stay updated on the latest security threats and countermeasures is a must. Hackers are always around the corner waiting for a fleeting forgetfulness. And trust us, you wouldn’t wish a massive breach on even your worst enemy.
Compliance with Regulations
Email regulations like GDPR, CAN-SPAM, and CASL are no joke. Non-compliance can lead to hefty fines, lawsuits, or even a shutdown. The catch? These laws vary by region, meaning if you have clients worldwide, you’ll be juggling multiple sets of rules. If you want to learn more about it, check our article: Get Past the Filters and Learn Why Email Authentication is Non-Negotiable.
Providing Customer Support
It’s simple. You need to make your customers wonder whether you have a personal life. That’s our motto. Imagine your clients experience frequent deliverability issues. They bombard your customer support team, but your limited staff is overwhelmed. Now you can start picturing the flood of negative reviews raining down like cats and dogs. You’ll need to ensure your support team is well-trained and knowledgeable. Yeah, it’s a significant challenge, but it’s crucial for maintaining customer satisfaction and loyalty.
Develop a Competitive Edge
What makes you special? Is it your amazing segmentation tool? Your prices? Great! Big competitors have that too. Sooo… Back to square one. But don’t let that discourage you! Creativity and constant evolution are your best guides in this market. Start practicing them.
Managing Costs
Some price their services aggressively low to attract clients, but as the time passes by, their operational costs start rising—more servers, more staff, more resources. Only then, they realize they’re barely breaking even, but raising prices might scare away new customers. The key? Price your services sustainably from the beginning, always taking into consideration your future growth and overhead.
Conclusion
From building a robust infrastructure to analyzing the marketing to find your niche, becoming an ESP has these and more challenges. But as long as you have flexibility and consistency, you’ll be able to surf the waves of email marketing.