When you send an email, your message doesn’t just rely on its content or design to make it to the recipient’s inbox. A major factor working behind the scenes is your IP address—the digital identifier of the server sending your email. Think of it as the return address on a letter. 

Email providers like Gmail and Outlook use this information to determine whether your message should be trusted.

An IP address plays a big role in your email deliverability. If your IP has a bad reputation—perhaps because of spammy behavior from others using the same address—it can harm your ability to reach inboxes. Even a perfectly written email can end up flagged as spam or rejected outright if the IP reputation is poor.

This is why businesses need to pay attention to the type of IP address they use for sending emails. There are two primary options: shared IP addresses and dedicated IP addresses. Whether you’re sticking with shared IPs or looking to get dedicated IP address, each comes with its own benefits, drawbacks, and specific use cases. Choosing the right one is key to protecting your email reputation and ensuring your messages reach their intended audience.

Let’s explore these two types of IP addresses and how they affect your email campaigns.

Understanding Shared and Dedicated IP Addresses

So far you understand the critical role an IP address plays in your email’s success and the two main types of IPs available to choose from. But how do you know which IP is best for your email campaigns - Shared Vs Dedicated IP address.

Well, each has its own unique functionality and applications. 

Let’s take a closer look to understand better.

What Is a Shared IP Address?

A shared IP address is an IP that multiple users share to send their emails. Most email providers likely rely on a shared IP.

Here’s how it works: your emails, along with those from other businesses, are sent through the same IP address managed by the email service provider. 

This means the IP’s reputation is collectively influenced by all the senders using it. If most users follow good practices—such as sending high-quality emails to verified contacts—the shared IP can maintain a solid reputation.

However, there’s a potential downside. If other users engage in spammy practices, such as sending emails to unverified lists, the reputation of the IP can take a hit. This can negatively affect your email deliverability, even if you’ve done everything right.

Examples of when shared IPs are commonly used:

• Small businesses or startups sending low volumes of email.
• Companies testing email campaigns before committing to a dedicated IP.
• Organizations looking for a cost-effective solution, as shared IPs are included in most email service provider plans.

What Is a Dedicated IP Address?

A dedicated IP address is assigned to a single sender, meaning your emails are the only ones sent from that IP. This setup gives you complete control over your sending reputation and ensures that no other sender’s actions can impact your email deliverability.

In email campaigns, a dedicated IP offers exclusivity. 

It’s particularly valuable for businesses that send high volumes of outreach emails or need consistent deliverability for critical communications. For example, e-commerce platforms that send transactional emails (like order confirmations and shipping updates) often use dedicated IPs to maintain trust and reliability. Or, if you're a cold email marketing agency sending more than 150k emails per month, then dedicated IPs is something you must consider.

As Uncle Ben famously said, 'With great power comes great responsibility.' The same wisdom applies here—except this time, you’re not slinging webs; you’re sending emails! 

With full control comes great responsibility. Managing a dedicated IP isn’t just plug-and-play; it requires care, starting with a 'warm-up' period to gradually increase your email volume and establish a stellar sending reputation.

If neglected or misused, even a dedicated IP can develop a poor reputation, so consistency and adherence to best practices are essential. If you want to learn more about things to consider before you get dedicated IP address, check out this resource. 

Typical scenarios where dedicated IPs are preferred:

• Marketing/Lead gen agencies sending large volumes of outreach emails.
• Enterprises needing full control over email performance and deliverability.
• Companies wanting to protect and enhance their email-sending reputation.

Key Differences Between Shared and Dedicated IPs

Now that we’ve covered the basics of shared and dedicated IP addresses, it’s time to dive into their key differences. Understanding these distinctions will help you evaluate which option aligns best with your email-sending goals.

Ownership and Usage

The primary difference lies in how the IP address is utilized:

• Shared IP: A shared IP is used by multiple senders, often managed by an email service provider. This means you share the IP’s reputation and email-sending capacity with other businesses or individuals.
• Dedicated IP: A dedicated IP is exclusively assigned to one sender. Only your emails are sent through this IP, giving you complete control over its usage and reputation.

This distinction is crucial because shared IPs work well for smaller senders who don’t need high-volume sending, while dedicated IPs are better suited for businesses with more specific requirements.

Cost Implications

Another major factor to consider is cost:

• Shared IP: Shared IPs are included as part of most email service provider plans, making them a cost-effective option. Since the provider manages the IP pool, there are no additional fees for setup or maintenance.
• Dedicated IP: Dedicated IPs come at an additional cost, often as an add-on to an email service plan. Beyond the setup fee, there may also be ongoing maintenance costs. This higher expense is justified for businesses that rely heavily on email deliverability and reputation control.

If you’re on a tight budget or have low email-sending volumes, shared IPs are the more affordable option. Dedicated IPs are an investment for those with high email traffic or mission-critical campaigns.

Email Deliverability

Deliverability is a key concern when choosing an IP type:

• Shared IP: Deliverability on a shared IP is influenced by the collective behavior of all senders sharing the IP. If most senders maintain good practices, the shared IP can enjoy a strong reputation and good deliverability. However, poor practices by one sender can negatively impact others.
• Dedicated IP: With a dedicated IP, deliverability is tied to your own sending practices. Consistent volumes, a clean email list, and adherence to email marketing best practices ensure a strong reputation, leading to better inbox placement.

For businesses that can manage their sending practices responsibly, a dedicated IP offers more control and predictability.

Reputation Management

Reputation management differs significantly between the two IP types:

• Shared IP: On a shared IP, the reputation is shared among all senders. While this can be beneficial if the group maintains good practices, it also means your reputation is at risk if others misuse the IP.
• Dedicated IP: A dedicated IP allows you full control over its reputation. Your sending practices alone determine its health, which is especially important for high-stakes or high-volume email campaigns.

If your business relies heavily on email for marketing or transactional communication, having full control of your IP’s reputation with a dedicated IP is often worth the effort.

Benefits of a Shared IP Address

Shared IP addresses offer several advantages, especially for smaller businesses or those just starting with email campaigns. 

Let’s explore their key benefits.

Cost-Effectiveness

One of the biggest advantages of a shared IP is its affordability. 

Shared IPs are typically included in the plans of most email service providers (ESPs), making them an ideal choice for businesses with limited budgets or low email-sending volumes. There are no additional costs for setup or ongoing maintenance, which makes shared IPs an excellent entry point for email marketing.

Easier Maintenance

When you use a shared IP, the email service provider takes care of the technical details. 

This includes monitoring the IP’s reputation, managing deliverability, and handling any issues that arise. For businesses without dedicated IT or email marketing teams, this hands-off approach significantly reduces the technical overhead and complexity of email management.

Pre-established Reputation

Shared IPs often come with a pre-established reputation maintained by the ESP. 

If the majority of senders using the shared pool follow best practices, you can leverage their positive reputation to achieve decent deliverability, even if you’re new to email marketing. This means you don’t need to build up a reputation from scratch, which is particularly beneficial for smaller businesses.

Benefits of a Dedicated IP Address

While dedicated IPs require more investment and management, they offer distinct advantages that can greatly benefit businesses with specific email-sending needs.

Enhanced Deliverability Control

A dedicated IP gives you full control over your sender reputation. 

Unlike shared IPs, where other senders’ actions can affect deliverability, your inbox placement is directly tied to your own sending practices. By following consistent and responsible email practices—like sending at regular intervals and maintaining a clean email list—you can significantly improve your chances of reaching recipients' inboxes.

Suitable for High-Volume Senders

Dedicated IPs are particularly well-suited for businesses that send a high volume of emails. 

Whether it’s marketing campaigns, transactional emails, or time-sensitive notifications, a dedicated IP ensures that your emails are prioritized and less likely to face delays. This makes them indispensable for large-scale operations or businesses where email is a critical communication channel.

Brand Consistency and Trust

With a dedicated IP, your emails come from a consistent and recognizable source, which helps establish trust with both recipients and mailbox providers. 

Over time, this consistency can build a strong sender identity for your brand, making your emails less likely to be flagged as spam and more likely to be opened by your audience.

When To Choose a Shared IP Address

Choosing a shared IP address makes sense in specific scenarios, particularly for businesses with smaller email-sending needs or tighter budgets. 

Here’s when a shared IP is the right choice:

• For low email volume senders: If your lead gen agency doesn’t send emails frequently or in large volumes, a shared IP is often sufficient. It allows you to benefit from a shared pool’s established reputation without requiring a dedicated setup.
• When budget constraints are a priority: Shared IPs are included in most email service provider plans, making them the cost-effective option. You don’t have to worry about additional expenses for setup, maintenance, or IP reputation management.
• If you’re starting with email campaigns and don’t have a large subscriber base: For new businesses or those testing the waters with email marketing, a shared IP is a practical choice. It offers an easy way to get started without needing to build or maintain a dedicated IP reputation from scratch.

When to Choose a Dedicated IP Address

Dedicated IP addresses are ideal for businesses with more advanced email-sending requirements or specific deliverability needs. 

Here’s when to opt for a dedicated IP:

• For agencies with high email volumes: If your business sends thousands (or millions) of emails regularly, a dedicated IP ensures your messages are not impacted by the sending practices of others.
• When email campaigns are critical for your business (e.g., transactional emails): For businesses that rely heavily on email—such as e-commerce platforms sending order confirmations or password reset emails—a dedicated IP offers reliability and control. Yet, without strong e-commerce cybersecurity, these communications risk phishing attacks and data breaches.
• To ensure brand credibility and maintain strict control over sender reputation: A dedicated IP lets you establish and maintain a strong sender reputation tied exclusively to your business. This is crucial for protecting your brand’s credibility and ensuring consistent deliverability for high-stakes campaigns.

How To Transition Between Shared and Dedicated IPs

Whether you’re upgrading to a dedicated IP for greater control or scaling down to a shared IP as your email needs decrease, transitioning between the two requires careful planning. 

Here’s how to navigate each shift.

Moving From Shared to Dedicated

If you’re transitioning from a shared IP to a dedicated one, there’s a crucial process you need to follow to ensure smooth email delivery and maintain a positive reputation:

• Warm-up process for a dedicated IP address: A dedicated IP doesn’t start with a reputation—it needs to be "warmed up." This means gradually increasing the volume of emails sent through the new IP. By starting small and scaling up over time, you allow mailbox providers to recognize your IP as a legitimate sender, avoiding issues like being flagged as spam.
• Best practices for establishing a positive reputation: To build a strong reputation with your new dedicated IP, maintain a clean and verified email list, send consistently, and avoid sudden spikes in sending volume. Following best practices like avoiding spam traps and managing bounces will also help establish a positive reputation more quickly.

Switching From Dedicated to Shared

In some cases, businesses might decide to switch from a dedicated IP to a shared one—usually when email volume decreases or budget constraints become a factor. Before making the switch, consider the following:

• Considerations when scaling down your email operations: Moving to a shared IP can impact your email deliverability, especially if the shared IP’s reputation is affected by other users. If your email volume decreases, or if you can’t justify the cost of maintaining a dedicated IP, a shared IP can be a practical solution. However, keep in mind that you’ll no longer have control over the IP’s reputation, and you may face fluctuating deliverability depending on the actions of other senders.

Get Dedicated IP Address via SmartServers by Smartlead

If you’re looking to get dedicated IP address, to take full control of your email deliverability, SmartServers is the perfect add-on to consider. SmartServers enables you to get dedicated IP address tailored to your business needs, ensuring your emails are sent from a reliable and exclusive source.

What Is SmartServers?

SmartServers is a new offering by Smartlead that provides dedicated IP addresses for your email campaigns. By using SmartServers, you can separate your email reputation from others and reduce the risks of deliverability issues often associated with shared IPs.

This is particularly beneficial for businesses that rely on high-volume email campaigns, transactional emails, or brand-critical communications. 

By opting for SmartServers, you can ensure that your emails reach your audience consistently and effectively. To learn more, visit here.

Conclusion

Understanding the differences between shared and dedicated IP addresses is crucial to managing your email reputation and deliverability. Both options come with their own set of benefits and challenges, and the right choice ultimately depends on factors like business size, email volume, and long-term goals.

If you’re just starting out or have a small email operation, a shared IP can be a great way to get started without the overhead costs. However, as your business grows and you send more emails, moving to a dedicated IP can provide more control and stability for your campaigns.

To take your email deliverability to the next level, consider adding SmartServers to your toolkit. With this add-on, you can get dedicated IP address and ensure reliable, consistent email performance. Take the next step with SmartServers and elevate your email strategy today!