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Who pays for the cost of spam and email delivery?

Matthew Whittaker profile picture
Matthew Whittaker
Co-founder & CTO, Suped
Published 25 Apr 2025
Updated 15 Aug 2025
8 min read
The question of who truly bears the cost of email, particularly unsolicited commercial email or spam, is more complex than it might first appear. While senders often pay for their email service providers (ESPs) and infrastructure, a significant portion of the financial and resource burden falls on recipients and the email ecosystem itself.
Unlike traditional postal mail, where the sender pays for every piece of mail sent, email operates on a different economic model. This distinction has profound implications for how spam proliferates and who ultimately foots the bill for its existence. It's a system that, by its very design, encourages bulk sending due to the near-zero marginal cost for the sender once the initial infrastructure is in place.
Understanding this cost distribution is crucial for businesses aiming for good email deliverability and for recipients navigating their inboxes. It sheds light on why effective spam filtering is so vital and why the battle against unwanted email is an ongoing, resource-intensive endeavor for everyone involved.

The sender's burden: initial costs of email delivery

For legitimate senders, email delivery involves several direct costs. Businesses utilize email service providers (ESPs) or manage their own infrastructure, paying for services that include sending volume, analytics, and compliance features. These costs ensure their emails are properly formatted, authenticated with records like SPF, DKIM, and DMARC, and routed through reputable IP addresses, all essential components of effective email deliverability.
However, the cost dynamic shifts dramatically when it comes to spam. For spammers, the actual cost of sending an individual email is almost negligible, especially when they leverage stolen resources, compromised accounts, or botnets. This minimal per-message cost allows them to send billions of emails, knowing that even a tiny response rate can yield substantial profits.
This fundamental imbalance, where senders of unsolicited email bear little to no direct cost for the transmission itself, creates what is often referred to as a "receiver pays" model. The vast majority of the expense associated with spam is not borne by the sender, but rather shifted onto others within the email ecosystem. Here’s a breakdown of who pays.

Party

Costs Incurred

Legitimate Senders
Email Service Providers (ESPs) fees, infrastructure, staff for email marketing, compliance with regulations like CAN-SPAM.
Spammers
Minimal or zero cost for sending (often using stolen/compromised resources).
Mailbox Providers
google.com logoGoogle, microsoft.com logoMicrosoft, etc.
Recipients (Users)
Time wasted deleting/filtering, increased storage usage, exposure to phishing/malware, potential productivity loss.
Internet Service Providers (ISPs)
Bandwidth consumption, network congestion, overhead of supporting mailbox providers' efforts.

The recipient's hidden expenses: the cost of unsolicited mail

The major costs of spam and email delivery are primarily borne by the recipients and their service providers. This is because every email sent, whether legitimate or spam, consumes server resources, network bandwidth, and storage space at the recipient's end. Mailbox providers like gmail.com logoGmail, yahoo.com logoYahoo, and outlook.com logoOutlook invest heavily in sophisticated spam filters, security protocols, and human resources to identify and block unwanted messages.
For individual users, the costs are more indirect but still significant. This includes the time wasted sifting through junk mail, deleting unwanted messages, and the potential security risks posed by phishing attempts or malware disguised as legitimate emails. While you might not directly pay for each spam email, your internet service provider (ISP) and email provider do, and those costs are often factored into your subscription fees or, in the case of free services, covered through advertising or data monetization.
The economic model of email, unlike physical mail, is often described as "receiver pays" because the burden of handling unwanted messages largely falls on the recipient and their infrastructure. This is why spam filtering and robust email security measures are so critical for maintaining a usable and safe email environment. Without them, the sheer volume of unsolicited mail would overwhelm systems and users alike.Wikipedia's page on email spam describes this as a form of "postage due" advertising.

The hidden cost of spam for businesses

  1. Lost productivity: Employees spend valuable time identifying, deleting, or reporting spam, diverting focus from core tasks.
  2. IT overhead: Significant resources are dedicated to maintaining spam filters, security systems, and handling spam-related issues. This includes the organizational costs of undelivered email.
  3. Security risks: Spam often carries phishing attempts, malware, or ransomware, leading to potential data breaches, financial losses, and reputational damage.
  4. Bandwidth consumption: Processing and storing vast amounts of spam consumes valuable network bandwidth and storage, leading to higher operational costs.

The role of blocklists and security measures

To combat the disproportionate burden of spam on recipients, the email ecosystem has developed various security measures and authentication protocols. These include SPF, DKIM, and DMARC, which help verify the legitimacy of a sender and ensure that emails are not spoofed. By implementing these, mailbox providers can more effectively determine whether an email is trustworthy or potentially spam.
Additionally, email blocklists (or blacklists) play a crucial role. These lists compile IP addresses or domains known for sending spam or engaging in malicious activities. When a sender's IP or domain appears on a blocklist, their emails are often rejected or routed directly to the spam folder, effectively penalizing them and reducing the volume of unwanted mail that reaches inboxes. Being listed on a blacklist is a major deliverability hurdle.
While these measures help, they also introduce complexity for legitimate senders. Proper configuration of authentication protocols and continuous monitoring of sender reputation are essential to avoid being mistakenly flagged as spam. This shifts some of the cost back to legitimate senders in the form of investment in deliverability expertise and tools, aiming to protect the recipient's inbox experience while ensuring their own messages arrive as intended. Businesses also need to be aware of regulations like the CAN-SPAM Act in the US.

Before robust anti-spam measures

  1. Sender's cost: Extremely low, especially for spammers who could send massive volumes with minimal investment.
  2. Recipient's burden: High, as unwanted emails consumed bandwidth and storage, and required manual deletion.
  3. Security: Limited protection against phishing and malware.

With modern anti-spam measures

  1. Sender's cost: Legitimate senders invest in ESPs and authentication. Spammers face increased infrastructure costs and need to constantly adapt and rebuild their reputation.
  2. Recipient's burden: Reduced direct burden due to effective filtering by mailbox providers. However, the providers' costs remain high.
  3. Security: Enhanced protection through authentication and filtering.

Economic implications and ongoing challenges

The economic reality of email means that the fight against spam is a continuous arms race. As senders of unsolicited messages find new ways to bypass filters and disguise their origins, mailbox providers and security experts constantly innovate to detect and block them. This ongoing effort incurs substantial costs in terms of technology, research, and human expertise.
Despite advancements in spam filtering and authentication, the "receiver pays" model largely persists due to the fundamental architecture of email. The barrier to entry for sending email remains low, making it incredibly cheap for spammers to operate, even if only a minuscule fraction of their messages reach an inbox or elicit a response. This low cost of failure incentivizes mass unsolicited sending.
For businesses, understanding this landscape is vital. It means that simply sending emails is not enough; ensuring they reach the inbox requires proactive management of sender reputation, adherence to best practices, and continuous monitoring. Factors such as high sending frequency, email content choices, and recipient engagement play a huge role in whether your emails land in the inbox or the spam folder. Knowing why emails go to spam is the first step towards better deliverability.
Ultimately, while senders bear the direct costs of their email infrastructure and services, the broader financial and resource burden of distinguishing legitimate mail from spam falls heavily on mailbox providers and, indirectly, on every internet user. This shared cost highlights the collective responsibility in maintaining a healthy and efficient email ecosystem.

Views from the trenches

Best practices
Implement strong email authentication protocols like SPF, DKIM, and DMARC to build sender trust and prevent spoofing.
Regularly monitor your email sending reputation using tools and dashboards from major mailbox providers.
Maintain clean email lists by removing inactive or invalid addresses, and manage subscriber consent diligently.
Prioritize engaging content and relevant messaging to encourage positive recipient interactions and minimize spam complaints.
Common pitfalls
Relying solely on an ESP for deliverability without understanding underlying technical standards.
Ignoring spam complaints or low engagement metrics, which severely impact sender reputation.
Purchasing email lists or using data acquired without explicit consent, leading to blocklists and poor inbox placement.
Sending high volumes of email without proper list segmentation or personalization.
Expert tips
Always prioritize explicit opt-in for your email lists. Quality of subscribers far outweighs quantity.
Treat deliverability as a partnership with your ESP and mailbox providers. Collaboration is key.
A proactive approach to monitoring IP and domain reputation can prevent major deliverability issues.
Remember that every email sent is a signal. Make sure those signals are positive.
Expert view
Expert from Email Geeks notes that unlike postal mail where the sender covers all costs, email recipients shoulder a substantial portion of the burden for handling and filtering messages.
2020-07-30 - Email Geeks
Expert view
Expert from Email Geeks explains that recipients' costs include server and network resources, as well as the time spent managing unwanted messages in their inboxes. They point out that the extremely low per-unit cost for spammers makes sending vast volumes of email financially viable for them.
2020-07-30 - Email Geeks

Understanding the true cost of email

The allocation of email delivery costs is heavily skewed, with recipients and their service providers absorbing a significant portion of the burden created by unsolicited email. While legitimate senders invest in proper infrastructure and compliance, the virtually zero marginal cost for spammers creates a persistent economic imbalance.
Mailbox providers spend vast resources on sophisticated filtering systems and security measures to protect users from the deluge of spam, while individuals bear the hidden costs of wasted time and increased security risks. The ongoing battle against spam highlights the need for continued vigilance and investment in email security and deliverability practices.
For anyone involved in email marketing, understanding this dynamic is paramount. It emphasizes that good deliverability is not merely a technical checkbox, but a continuous effort to respect recipient inboxes and contribute positively to the email ecosystem, ultimately leading to better engagement and campaign success. If you're struggling to get your emails to the inbox, analyzing these cost implications and adjusting your strategy accordingly can make a significant difference.

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