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Mailchimp's price increased. What’s going on?
Mailchimp has been a familiar name in email marketing for over two decades, trusted by businesses of all sizes. But over time, its pricing structure has shifted dramatically, leading many to wonder if it still offers the value they need.
With significant adjustments in 2023 and changes in prior years, the platform’s evolution has left users debating its worth.
Here’s a clear look at Mailchimp’s pricing journey, why users are concered, and where you might go from here if the costs have started to feel like too much.
A look back at Mailchimp’s humble beginnings
When Mailchimp first launched in 2001, it was a go-to email marketing tool.
It gained popularity because of its simple, user-friendly design and a generous free plan that allowed businesses to get started without digging deep into their pockets. Paid plans were based on the number of subscribers, which made budgeting simple.
For years, Mailchimp’s affordability and practicality made it a favorite among small businesses and startups. This loyalty helped the platform grow into one of the most recognizable names in the email marketing world.
However, things changed.
The turning point in 2019 pricing overhaul
Things started to shift in 2019. Mailchimp announced they’re moving away from being seen as just an email marketing platform to a customer relationship management (CRM) platform. With this repositioning came a pricing increase.
- Free plan adjustments. Mailchimp free plan, previously capped at 2,000 contacts, remained free but came with reduced features. Marketing automation tools were moved to paid tiers.
- Billing for all contacts. Users were charged for unsubscribed and non-subscribed contacts. Naturally, this sparked frustration. Why pay for contacts you can’t even email?
For small businesses, these changes were a jarring shift. The platform they had relied on suddenly felt more complicated and expensive.
The Intuit acquisition and more price increases
In 2021, Mailchimp was acquired by Intuit for $12 billion. Shortly after, prices increased again, and the free plan became even more limited, allowing just 500 contacts. This means users with growing lists didn’t really feel the value.
While new tools were introduced, such as advanced analytics and customer journeys, smaller users questioned if the email marketing platform was still the right fit.
The premium plan, designed for bigger organizations, costs over $350 a month for larger contact lists, making it a substantial investment. For smaller businesses, the rising prices were hard to manage and often felt out of reach.
2023, the year of polarizing changes
The changes Mailchimp introduced in 2023 stirred things up.
Free plan limitations
For those on the free plan, the contact limit was slashed to 500, and the monthly email send limit was capped at 1,000 emails.
If your business depended on this plan, you were left with two tough choices: upgrade to a paid plan or cut back on your email marketing efforts. Neither option was ideal.
Paid plans challenges
Beyond the free plan, users on paid plans faced their own hurdles. Mailchimp’s pricing now calculates costs based on contact count, including unsubscribed and non-subscribed contacts. This means you’re charged for contacts you cannot email unless you manually archive them.
And for those using the Pay As You Go plan, meant for occasional email senders, the same contact charges applied, making this option less appealing.
This billing method has been a sore spot ever since. For businesses managing large lists, costs can snowball quickly. Is paying for contacts who no longer engage with your emails worth it, especially if your list grows faster than your revenue?
Legacy plans: A promise broken?
Even Legacy plan users, original customers promised immunity from pricing changes, saw increases. This breach of trust left many long-time users questioning their loyalty to the platform.
These changes left users feeling pinched, particularly small businesses trying to keep costs under control.
Legacy plan users were the foundation of Mailchimp’s early success, yet they’ve faced the same cost increases as newer customers.
2024, what changed?
In 2024, Mailchimp didn’t shake things up too much, but a few pricing adjustments stood out.
The free plan stayed the same, offering 500 contacts and 1,000 monthly sends. Essentials stuck to its $13/month price tag, while the Standard plan saw a price increase from $17 to $20/month. The Premium plan? Still $350/month, appealing to large-scale businesses.
For some, these changes weren’t a dealbreaker. For others, they sparked a lingering concern: Are these prices still worth it? And is this becoming an annual pattern of price hikes?
[Infobox] Current Mailchimp pricing at a glance
- Free plan. 500 contacts, 1,000 sends/month, basic tools.
- Essentials plan. $13/month for 500 contacts, basic features like A/B testing.
- Standard plan. $20/month, automation workflows, advanced targeting.
- Premium plan. $350/month, advanced segmentation and enterprise tools.
Based on Mailchimps on 18/12/24
Why has Mailchimp gotten so expensive?
The higher costs aren’t arbitrary. Several factors have contributed to the price increases.
Expanding features. Mailchimp has grown into a full email marketing service. It now offers a variety of new tools, but many come as separate add-ons. For instance, CRM, predictive analytics, and social media integrations. While these features can be valuable, they also come at a price; one that not all users are willing to pay.
Pressure from ownership. Intuit’s acquisition of Mailchimp likely plays a role. Acquisitions often lead to higher prices as companies look to recoup their investments.
Targeting larger businesses. With its advanced tools, Mailchimp seems to be shifting focus toward mid-sized and large organizations. Smaller businesses, meanwhile, may feel overlooked.
Mailchimp alternatives to consider
If Mailchimp’s pricing changes have you reconsidering your options, you’re not alone. Many businesses are exploring Mailchimp alternatives, and one name that frequently comes up is Brevo.
- Clear pricing. Pricing is based on the number of emails sent, not the number of contacts stored. This means you don’t pay for unsubscribed users, standing out as a cheap email marketing service for businesses with large lists.
- Generous free plan. With 300 daily emails on its free plan, Brevo gives small businesses a solid starting point, and the best part? It’s forever free.
- Features that grow with you. From email campaigns to SMS marketing, the email marketing software offers tools that grow with your business without surprising price increases.
Should you stay or switch?
If you’ve been using Mailchimp for years, the thought of switching platforms might feel overwhelming. But for many ecommerce businesses especially, it’s worth considering. Ask yourself
- Does the pricing fit within your current budget?
- Are you paying for features you don’t use?
- How much do inactive contacts affect your bill?
Switching doesn’t have to be complicated. Email marketing platforms offer migration tools to help transfer your data and campaigns without too much trouble.
Are you ready to pay less and do more?
