Shared/Managed IPs VS. Dedicated IPs

Discussion in 'ESP Discussion' started by chk, Oct 10, 2012.


What type of ESP setup do you primarily use?

  1. Shared IPs

    0 vote(s)
  2. Dedicated IPs

    6 vote(s)
  3. Both, for different reasons

    3 vote(s)
  4. I built my own system

    2 vote(s)
Multiple votes are allowed.
  1. chk

    chk Need email "Openers" for Geo based offers!

    Sep 5, 2011
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    Salt Lake City
    When customers come to work with us at ListMarketer, they are sometimes transferring from a shared IP solution to us (a dedicated IP ESP) Because of the differences between how dedicated IP-ESPs work, these customers sometimes have difficulty getting used to these changes in the beginning.

    I feel mailing on dedicated VS managed IPs, makes a huge difference when deciding which ESP is right for you and the marketing strategy you will be using. I think understanding the difference between theses two, pros and cons of each and how mailers utilize each system, might help newer mailers coming on here decide what is best for them.

    This is a very basic description and break down. I hope to get feedback from the community so we can put together more comprehensive and detailed explanations

    ESP’s that use shared IPs, just as the term indicates, are IP addresses that you and other customers all mail on together. Because you’re all in the same boat if everyone prior to you has been behaving, or the ESP has been managing the IPs, you can start off with some great delivery. On the flip side if someone sends a bunch of crap and makes everyone angry, you all go down with the ship. In order to minimize this risk, most of these companies keep a close eye on their clients and have a low tolerance for complaints, hard bounces, in-organic data or “spam” listings.

    Shared IPs give you the benefits of an established reputation and often in-boxing right off the bat. They are more hands off, sometimes easier to learn to use and can easily cater to smaller mailers. Shared solutions can be great however, once you want to grow and expand it is often price prohibitive and too restrictive for many mailers. Shared solutions do not generally cater to affiliate marketers or larger mailers as much as dedicated ones.

    Shared/Managed IPs (these DO NOT apply in all cases)

    Pros: Can cater to smaller mailers easily
    Established Reputation
    Hands off approach
    Sometimes easier to use for new mailers
    Good delivery right in the beginning
    Less technical knowledge needed
    Instant results

    Cons:Much higher costs
    More restrictive with data (no 3rd party data/single opt-in)
    More restrictive with complaints
    List size or volume limits
    Less in-depth reports
    Customization limitations
    More rules on content (what you can send)

    Dedicated IP solutions such as ListMarketer put you on your own IPs. Because of this, you do not have to worry about your mailing practices negatively affecting someone else’s business and visa versa. Because you are in charge of your own reputation you have much more control over what you can do. It is in your best interest to build up your reputation and maintain it however; you will not be kicked off the network for negatively affecting your own IPs. (Obviously this is within reason)

    ESP’s with dedicated non-managed IPs, can let you use 3rd party data and generally do not require double opt-in data. They are often much more relaxed when it comes to complaints, high bounce rates and listings.

    Because you do not have the advantage of pre-established reputations you have to build up your reputation yourself, with the help of your mailing platform and their support staff. Once you have built your reputation you are able to send much more mail at significantly lower costs. Because of this warm up/ramp up period, I feel you are sometimes trading initial results for control, scalability and more revenue in the future.

    Dedicated IPs (these DO NOT apply in all cases)

    Pros: Significantly lower costs
    3rd party data
    More “mailer” friendly
    No volume limits, data limits and few content limitations
    Your "own" IPs
    More tolerant of unsubscribes, listings and complaints

    Cons:Warm up period
    No pre-established reputation
    Must manage your own IPs
    More labor intensive
    Requires a longer time frame mindset

    How have you guys utilized different types of platforms to meet certain marketing goals? Do you have a preference of one type of setup over another? What tips do you have for mailers when trying to decide what approach they should take?

    What other Pros or Cons do you see?

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