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Q. Why should I use a dedicated SMTP server?

A. A dedicated SMTP server seperates your bulk mailing lists and your general site email so that it uses 2 different servers.

You use a dedicated SMTP server to put the load of sending your bulk email on a seperate server dedicated to handling large loads of email, so that your general sales and communications emails are not slowed down by your mailing list. This improves the speed of your general communication emails greatly, as well as improves your site performance and the delivery speed of your bulk mail.

Using a dedicated SMTP server also takes the risk of your IP being blacklisted away from your site, and puts the risk on a remote server. Occasionally, list owners that conform to all SPAM policies still get blacklisted. This can have a lasting affect on traffic to your site- as well as email delivery to and from your site. Using a dedicated SMTP server mitigates this issue by using services and IP addresses not related to your site.

Any business owners sending to lists larger then 5000 users would benefit greatly from using a dedicated SMTP server.
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