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What are the pros and cons of sending email from subdomains vs a single domain with multiple IPs, and how can I optimize my signup process and sender reputation for a growing business with small sending volumes?

Michael Ko profile picture
Michael Ko
Co-founder & CEO, Suped
Published 26 May 2025
Updated 16 Aug 2025
7 min read
For growing businesses, particularly those transitioning from fragmented email setups or dealing with varied customer segments, optimizing email sending infrastructure is crucial. A common dilemma arises when considering whether to send emails from various subdomains or to use a single domain with multiple IP addresses. Each approach has its own set of advantages and disadvantages, especially when managing small sending volumes and striving to maintain a strong sender reputation.
The choice between subdomains and multiple IPs significantly impacts deliverability and reputation management. Understanding how each option affects your email program allows for a more strategic approach to scaling email operations. This is particularly relevant for companies with a growing user base, like those offering cloud payroll software, where signup processes generate essential transactional emails.
Beyond infrastructure, the signup process itself plays a pivotal role in shaping sender reputation. Poor signup hygiene can quickly lead to low engagement, high bounce rates, and blocklisting (or blacklisting), regardless of your domain or IP strategy. For businesses sending relatively small volumes, every email counts, making a robust signup flow and proactive reputation management essential for inbox placement.

Comparing subdomains and multiple IPs

Sending emails from subdomains involves using variations of your primary domain, like marketing.yourdomain.com for promotional messages and transact.yourdomain.com for transactional alerts. This strategy allows you to segregate your email streams, effectively isolating the reputation of each. If one stream, such as marketing emails, encounters deliverability issues, it's less likely to negatively impact the critical transactional emails sent from another subdomain. This segmentation is a key reason why many organizations choose to segment email streams using subdomains.
On the other hand, using a single domain with multiple dedicated IP addresses typically serves to handle large volumes of email, distributing the sending load across different network paths. Each IP address builds its own reputation, and for very high senders, this can help manage throughput and reduce the risk of a single IP address impacting the entire sending operation. However, for smaller sending volumes, managing and warming up multiple dedicated IPs can be challenging. An understanding of email sending IPs and domains is critical here.
For a growing business with relatively small volumes, subdomains generally offer a more practical and effective solution for reputation management. They allow you to diversify your sending without the overhead of warming up and maintaining separate IP reputations, which is difficult without consistent, high volume. Subdomains carry their own reputation, but severe issues can still affect the main domain. This approach aligns well with the reasons to use subdomains for email marketing.

Subdomains

  1. Reputation Segmentation: Isolates reputation for different email types, protecting critical streams from less performant ones. This makes it easier to manage email deliverability.
  2. Simpler Management: Easier to warm up and maintain reputation compared to multiple IPs, especially with small volumes.
  3. Brand Consistency: Keeps the primary brand domain visible, while allowing functional segmentation.

Multiple IP Addresses

  1. Volume Handling: Ideal for distributing very high email volumes to optimize throughput.
  2. Reputation Impact: Each IP builds its own reputation, but low volume on multiple IPs can make warming up and maintaining a good score difficult. A bad IP reputation can severely impact deliverability, as discussed in Quora's insights on domain reputation.
  3. Complexity: More complex setup and ongoing management, requiring consistent volume for each IP.

Optimizing the signup process for deliverability

A robust signup process is your first line of defense against deliverability issues. For a business acquiring new users, especially in a sector like payroll software, ensuring the legitimacy of signup emails is paramount. Spammers or malicious actors often use invalid or temporary email addresses, which can lead to bounces and spam trap hits, severely damaging your sender reputation (or your IP’s reputation). A dedicated subdomain for new sign-ups can also help.
Implementing a double opt-in process is a highly effective way to verify email addresses. This requires users to click a confirmation link in an email after signing up, ensuring their intent to receive communications and that the email address is valid. This simple step significantly reduces the likelihood of sending to invalid addresses or spam traps. It also indicates higher engagement to mailbox providers, positively impacting your email deliverability and sender score.
Beyond double opt-in, consider using CAPTCHA or reCAPTCHA on your signup forms to deter bots. While third-party email verification services exist, integrating simple, user-friendly anti-abuse mechanisms directly into your signup flow, combined with a mandatory confirmation step, is often sufficient. Limiting access to your service until verification is complete adds another layer of protection, preventing potential misuse by unverified accounts.

Signup process best practices

  1. Double Opt-In (DOI): Always require users to confirm their email address via a link sent to their inbox. This is a crucial step for maintaining a healthy list and avoiding spam traps.
  2. CAPTCHA Implementation: Use reCAPTCHA or similar tools on your signup pages to prevent automated bot registrations that can generate invalid email addresses.
  3. Access Control: Restrict full access to your software or service until the email address has been successfully verified. This prevents malicious usage.
  4. Domain-based Registrations (where applicable): For B2B services, consider encouraging or requiring corporate email addresses instead of generic ones like gmail.com if your target audience uses them. However, for small businesses and sole traders, generic email addresses are often legitimate.

Managing sender reputation with small sending volumes

For growing businesses with small sending volumes, maintaining a positive sender reputation is particularly delicate. Unlike large senders who can rely on sheer volume to build and sustain reputation, smaller senders must be meticulously careful with every email. This involves consistent sending practices and continuous monitoring. You need to keep an eye on your sender reputation via tools like Google Postmaster Tools, even when volumes are low.
One of the biggest challenges for small volumes is IP warming. If you're using a dedicated IP, it needs consistent, gradually increasing volume to build a trusted reputation with mailbox providers. Erratic or very low volume sends can lead to your emails being flagged as suspicious. This is why a shared IP with good practices from your Email Service Provider (ESP) can sometimes be beneficial for small senders, as the collective volume helps maintain the IP's overall reputation. However, using an email subdomain improves deliverability too.
To protect your sender reputation, ensure proper email authentication is in place, including SPF, DKIM, and DMARC. These protocols verify that your emails are legitimate and prevent spoofing, which is a significant factor in how mailbox providers assess your trustworthiness. Regularly monitor your blocklist (or blacklist) status and address any issues promptly. Even for small senders, being listed on a blocklist can severely impact deliverability.
For transactional emails like signup confirmations, which typically have high engagement, it's generally safe to send them from the same IP as other regular content, provided your ESP has robust anti-abuse mechanisms. The key is to demonstrate consistent positive engagement across all your sending streams, regardless of volume. This requires you to focus on the best practices for choosing an email sending domain that fits your business model.

Views from the trenches

Best practices
Always implement double opt-in for all new sign-ups to ensure email validity and user intent.
Use subdomains to segment different email types (e.g., transactional, marketing) to protect your core domain's reputation.
Integrate CAPTCHA solutions on your signup forms to deter bot registrations and reduce invalid email addresses.
Ensure full email authentication (SPF, DKIM, DMARC) is correctly configured for all sending domains and subdomains.
Regularly monitor your sender reputation and blocklist status to proactively address any potential issues.
For smaller volumes, focus on consistent sending and engagement to slowly build and maintain IP reputation.
Common pitfalls
Sending emails to unverified addresses, leading to high bounce rates and spam trap hits.
Using a single domain for all email types, risking your main brand's reputation due to poor performance from one stream.
Relying on multiple dedicated IPs for low-volume sending, which can make it harder to warm up and maintain individual IP reputations.
Not implementing DMARC, SPF, and DKIM, leaving your domain vulnerable to spoofing and impacting deliverability.
Ignoring blocklist notifications, which can lead to widespread email rejection by mailbox providers.
Allowing free email addresses without proper verification, as some might be used for malicious activities in B2B contexts.
Expert tips
Consider a phased approach: start with subdomains for segmentation, and only consider multiple IPs if volumes scale significantly.
If using shared IPs, choose an ESP with a strong reputation and good anti-abuse policies to benefit from their collective volume.
Prioritize transactional emails' deliverability by ensuring they have the highest reputation and are sent from a well-maintained subdomain.
For B2B services, analyze your customer demographics; if many are sole traders, free email addresses will be common and legitimate.
Regularly audit your email lists to remove inactive or bouncing addresses, which helps maintain a healthy sender score.
Block access to full software features until a user has verified their email to prevent abuse and ensure genuine engagement.
Marketer view
Marketer from Email Geeks says there is nothing inherently wrong with either multiple subdomains or just one domain with multiple IPs, but specific challenges depend on the organization and existing deliverability issues.
October 1, 2021 - Email Geeks
Expert view
Expert from Email Geeks says if ESPs have proper anti-abuse mechanisms for new sign-ups, there shouldn't be a reputational risk with sending confirmations on the same IP as regular content, but it depends on the sign-up profile.
October 1, 2021 - Email Geeks

Building a scalable and trusted email program

For a growing business with small sending volumes, strategically using subdomains for email segmentation is generally more advantageous than managing a single domain with multiple dedicated IP addresses. Subdomains offer a practical way to isolate reputation risks and manage different email streams effectively, without the complexities of warming up and sustaining multiple IP reputations.
Complementing this infrastructure choice with a robust signup process - featuring double opt-in, CAPTCHA, and restricted access until verification - will significantly improve your sender reputation. By focusing on these core elements, you can build a scalable and highly deliverable email program that supports your business's growth and ensures critical communications reach the inbox.

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