Your IP address is your online identity and can be an asset or a liability for your email campaigns. And while a dedicated IP address comes with several benefits (as you’ll see), it also comes at a cost. So, the big question is whether it’s worth investing in.

We’ll walk you through how a dedicated IP differs from a shared IP, how it affects your email deliverability, and the benefits and downsides. By the end of this article, you’ll be able to determine whether a dedicated IP is worth it, where to get it, and how to set it up.

Let’s get started!

What are the Differences Between a Dedicated IP and a Shared IP?

Diagram showing a comparison between Dedicated IP Address and Shared IP Address usage. Courtesy of Canva

Every email is sent through an internet protocol (IP) address. Email Service Providers (ESP) like Gmail and Yahoo use IP addresses to identify where your email is coming from. There are generally two types of IP addresses when sending emails: shared IP and Dedicated IP.

A dedicated IP address is a unique and static IP that never changes and is assigned to one account or user. Simply put, you are the only one using this address to send your emails. On the other hand, a shared IP is an address used by multiple accounts. Think of it as carpooling, where several users ride on the same IP address to send their emails.

To learn more about how these two differ, read our detailed guide: Shared IP vs. Dedicated IP—Which is Better.

Will a Dedicated IP Address Improve Email Deliverability?

ESPs usually look at the email sender’s IP address reputation to determine the credibility of an email and whether to deliver it or not. Therefore, good email deliverability will largely depend on your choice of IP address. You need an IP address with a clean reputation to ensure your emails get delivered to your subscribers’ inboxes every time.

Since dedicated IP addresses are exclusive, you have more control over improving and maintaining your IP’s reputation. For example, with shared IPs, your IP’s reputation is easily affected by other users sending spam emails. But by choosing a dedicated IP option, you can reduce the risk of ESPs blacklisting your IP address because only your actions affect your IP reputation.

A dedicated IP also helps build your sender reputation. It reduces the chances of your email landing in the spam folder since it provides a consistent address less likely to be considered suspicious by spam filters. By avoiding spam folders, dedicated IP addresses help improve your sender score by increasing the number of delivered emails to your client’s primary inbox.

A person uses a smartphone and laptop at a table, both devices displaying software development code and notification icons, including those for an email campaign.

However, there’s more to email deliverability than having a dedicated IP address. Pair your email marketing best practices with a reliable email deliverability tool like InboxAlly. We’ll help you warm your emails to get great delivery rates from the very start.

Four Best Practices for Using a Dedicated IP

To increase the effectiveness of your dedicated IP enhancing your email delivery rates, you should follow these practices:

1. Warm-up your dedicated IP

Having a dedicated IP address doesn’t guarantee a good sender reputation. This reputation is built over time. So, to enhance your email deliverability, you need to gradually warm up your new IP address to build a positive reputation with email services. At InboxAlly, we educate you on the best practices of IP warming. Our warm-up feature will help you build a positive sender reputation by gradually increasing the email volume.

2. Closely monitor and analyze your sender’s reputation

Regularly assessing your sender’s reputation will help give you more insights into how your email campaign is performing. You can also identify problem areas that you can solve to improve your reputation and enhance the effectiveness of your dedicated IP address.

InboxAlly’s analytic tools help you avoid analysis paralysis by tracking exactly where your emails are landing.

3. Clean your contact list regularly

A dedicated IP address from a reputable source won’t do much to help your email delivery if you don’t have a clean and updated contact list. You must remove risky, invalid, and inactive addresses from your list to help improve your sender score. By partnering with InboxAlly, you don’t have to worry about this. We have systems to regularly validate and clean your contacts to maintain a healthy and deliverable email list. We’ll also provide engagement metrics to help you analyze and keep track of your contact list’s health.

4. Stick to good email marketing practices

Even though other users can’t affect your IP reputation on a dedicated IP, your actions can. So, ensure you follow the best email marketing practices at all times.

The Benefits and Drawbacks of Dedicated IP Address

A blue IP location marker illustrating an email campaign.Courtesy of Canva

Before making a final decision, let’s discuss the potential pros and cons of a dedicated IP address. Let’s start with the benefits:

  • More control over your reputation management: You don’t have to worry about other users’ shady marketing practices affecting your IP or sender’s reputation. As long as you stick to the best email-sending practices, you can be assured of a positive reputation that will enhance your email deliverability.
  • Reduced risk of blacklisting: Consistently using the same unique IP address to send your emails improves your trustworthiness. It also helps your emails pass the spam filters set up by an ESP or an Internet Service Provider (ISP).
  • Increased customization options: Dedicated IP addresses allow you to tailor your email marketing strategy according to your business needs. You can easily regulate the volume of emails and when they go out.
  • Easily troubleshoot and resolve deliverability issues: Since you’re the only one using a dedicated IP address, you can keep track of your delivery rates and easily pinpoint the problem areas affecting your sender’s reputation. This allows you to act promptly and effectively when resolving such issues.

But dedicated IPs also have their downsides, which mainly are:

  • Higher cost: The price varies greatly depending on where you get your dedicated IP, your contact list size, or the email volume. You can get it as an add-on feature for as low as $3/month up to $249/month or higher. However, since you’re the only one using the IP address, the initial fee will typically be higher than those of shared IP addresses. The maintenance of this type of static IP also falls on you as the sole owner, which is an extra cost.
  • Requires a warm-up period: With a shared account, you can benefit from the sender reputation of other accounts using the same address. Unfortunately for a dedicated IP address, you would have to go through the process of warming up the IP address to build a positive sender reputation, which can take time.
  • Difficulty improving a poor sender reputation: ESPs are less lenient with dedicated IP addresses than shared IP addresses. The logic is that shared IPs have multiple users, and mistakes have a smaller impact on the IP reputation. But since you are the only one using a dedicated IP address, you take sole responsibility for any malpractices.

So, is Dedicated IP Worth It? – Key Factors to Consider

A person interacts with a virtual interface showing an email icon with a notification of five new messagesCourtesy of Canva

A dedicated IP is worth it if it meets your email marketing needs. So, how do you determine this? On top of weighing the pros and cons we’ve discussed above, you need to factor in the following considerations before making a choice:

  1. Your budget: If you can afford the cost of acquiring and maintaining a dedicated IP, then it is worth a try. But if the cost is beyond your budget, opt for a shared IP where the cost is shared over multiple users.
  2. The email volume and sending frequency: A dedicated IP address works best with high email volumes. If you’re consistently sending out an average of at least  300,000 emails a month, then you’d benefit from a dedicated IP. But note the keyword is consistently. If you don’t regularly send out bulk emails, investing in dedicated IP addresses isn’t worth it.
  3. The technical resources and expertise: Successfully maintaining a dedicated IP address requires technical know-how of processes like IP warming. If you’re new to email marketing, this can be a challenge. But luckily for you, at InboxAlly, we have the technical resources and expertise to guide you.

We’ve helped businesses new to mass email marketing run successful email campaigns. You could be next. Book a demo with our experts.

How to Set Up a Dedicated IP Address

Hands typing on a laptop keyboard analyzing your email campaign's performance.Courtesy of Canva

According to Mailchimp, once you’ve settled for a dedicated IP address, the following steps will guide you on how to properly set it up:

  1. Pay for a dedicated IP: Some ESPs offer dedicated IPs as an add-on for a price. Check with your service provider to be sure it supports dedicated IP addresses. You can also order one from Virtual Private Network services (VPN service) for VPN users or your website hosting provider.
  2. Validate your domain: Authenticating your domain improves the legitimacy of your emails and reduces the likelihood that an ESP will view them as spam. For that, your DNS panel needs a Sender Policy Framework (SPF) that shows your IP address authorized to send emails to a specific domain. You also need a DomainKeys Identified Mail (DKIM) to protect your sender identity from attacks like spoofing and phishing. Lastly, by configuring your Domain-based Message Authentication, Reporting & Conformance (DMARC), you can prevent your emails from bouncing and improve your delivery rate.
  3. Connect your dedicated IP to the ESP: To start using it, add the dedicated IP address to your ESP settings and designate it to your account. The process of how you’ll achieve this will depend on the email service you’re using. Consult their support team if you need assistance.
  4. Warm up the IP address: Start by sending a few emails and gradually increase the frequency and volume. Use InboxAlly to create a suitable warm-up schedule that meets your email marketing goals.
  5. Keep track of the email metrics: Constantly monitor the performance of your email campaign to know what’s working or not working. For example, the insights from InboxAlly’s analytical tools can help you improve your strategy to achieve your sales goals.

Conclusion

A dedicated IP address is an ideal choice if you want full control over your reputation and deliverability, as long as you can afford the extra cost. But it is a worthy investment, especially if you are a large business dealing with high-volume email campaigns. In the end, the decision lies in understanding your budget and email marketing needs and goals.

If still in doubt, consult an InboxAlly email deliverability expert on the best methods to increase delivery rates while maintaining your reputation. Ensure the success of your email campaigns – try InboxAlly today!

Dedicated IP Address FAQs

Is a dedicated IP the same as a static IP address?

No, it isn’t. While a dedicated IP is a type of static IP address in the sense that it doesn’t change, not all static IPs are dedicated IPs. A dedicated IP address is uniquely designated to a single user, while some static IP addresses can be shared by multiple users.

Is using a dedicated IP address safer than a shared IP address?

Both types can be safe if obtained from a reliable source. However, a dedicated IP offers more exclusivity and control over reputation management compared to shared IPs. This can result in potentially enhanced security and better email deliverability, as your IP’s reputation is not influenced by the actions of other users.

Can I use a dedicated IP address on multiple devices?

Typically, no. A dedicated IP address is assigned to a single account or device for exclusive use. It is intended to provide consistent access and reputation management for that specific account or service. However, within a network, multiple devices can route through the same dedicated IP if configured correctly (e.g., within a business network), but the IP itself is not designed to be shared among multiple unrelated accounts.

Do I need a VPN if I have a dedicated IP address?

Yes, a dedicated IP VPN is still beneficial. A dedicated IP does not provide encryption or protect your data from being intercepted. But a VPN offers secure, encrypted connections, enhancing your online privacy and security, especially when accessing public Wi-Fi or sensitive information.