If you are looking to start an online business, then you should know that using an auto-responder will play a huge role in your success. Configured the right way, it can put your customer relationship building on auto pilot.

Auto-responders also have many uses. They are sometimes used to manage contacts. They are sometimes used for blasting and managing emails. Plus, they can help build and store multiple lists and email sequences while taking away all the tedious busy work of doing it manually.

There are two different types of auto-responders:

• Monthly subscription auto responders
With this type you don’t have to install it on your server. For newbies this may be the easier route. You will have a monthly fee to pay while using this one.

There are also some drawbacks to the subscription based auto-responder. You might have to pay more per month as your number of contacts grows. You could be sharing the IP address with other subscribers with these types of services. Certain email providers may block the IP address that your service provider uses, causing your emails not to be delivered. In the end, you could pay way more over time with the subscription than just buying the server based auto-responder.

• Auto-responders that you install on your own server
This type has many more benefits than drawbacks. First, there is absolutely no limit to how many contacts you can have. Second, using a dedicated IP address will prevent you from getting blocked by the email providers because of someone else’s spamming efforts. And, you will have absolute control of your lists with this type, unlike the subscription based.

You can expect more options for configuring the server based auto-responders including the option to set how many emails go out per minute. This may not be a big deal to you, but email providers will flag and potentially block IP addresses who try to send out too many emails at a time.

Choosing the right auto-responder will ultimately save you money, time, and energy. Choose carefully and great rewards will come from this powerful tool.