E-mail Marketing Content Best Practices: Identifying the Impact of Content on Response Behavior

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Hello People
I just started small online business. One way of getting in touch and offer the service to my customers/ subscribers is to send them emails each week. I would like to know which is the best way for cost effective in email marketing. Is it best to buy email marketing software and install on my system or use the third party company where I would have to pay monthly.
What I see is that email marketing software range from £200+ and third party companies range from £10 for about 500 email/month.
Yet I don’t see any reason to pay monthly to get limited email sending why not buy software install and send as many as I want with no rising monthly cost.
Does anyone knows the down side of buying email marketing software compared to use third part companies.
Regards
Cyberfx

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We are a mid-sized business growing our customer base. Our emails range from customer assistance to product promotions.
We need to be able to send approximately 40,000 to 60,000 emails a month. We prefer to be able to update our own customer and prospect databases with the opt in and opt out information rather than duplicating the data from our service. And we would like to handle opt-outs per list type, (opting out of product promotions does not stop the regular newsletter, and opting out of the newsletter does not opt the client from service notices.)

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