GoHighLevel SMTP vs LC Email: Detailed Comparison

The Core Difference

LC Email = GoHighLevel's built-in email sending using shared infrastructure Custom SMTP = Your own ESP (Mailgun, SendGrid, etc.) connected to GHL

For the full setup process, see our GHL SMTP setup guide. For a deeper technical comparison, see LC Email vs SMTP.

This fundamental difference affects everything else.

Comparison Table

Feature	LC Email	Custom SMTP
IP Reputation	Shared with all GHL users	Dedicated or shared on your ESP
Deliverability	Inconsistent	Generally better
Cost	Included (~$0.001/email)	$15-100+/month
Setup	Automatic	Manual configuration
Analytics	Basic	Full ESP analytics
Bounce handling	Built-in	Varies by ESP
Volume limits	Plan-dependent	ESP-dependent
Domain control	Limited	Full control

Deliverability: The Deciding Factor

LC Email's Problem

LC Email uses shared sending infrastructure. This means:

1. Thousands of GHL users share the same IP pools
2. One bad actor sending spam damages everyone
3. You can't control your sending neighbors
4. Mailbox providers see bulk sender patterns

Result: Inconsistent inbox placement regardless of your practices.

Custom SMTP's Advantage

With custom SMTP:

1. You control your sending reputation
2. Your practices determine your deliverability
3. ESP-level tools help monitor and improve
4. Dedicated IPs available for complete isolation

Result: Predictable deliverability based on your own behavior.

Practitioner note: I've tested identical emails from LC Email and Mailgun. The Mailgun version consistently placed better in Gmail. Same content, same recipient segment—just different sending infrastructure. The difference was measurable.

Cost Comparison

LC Email Costs

Included in your GHL subscription:

• Starter: Limited email credits
• Unlimited: More generous allocation
• Per-email cost: ~$0.001 effectively

Custom SMTP Costs

Mailgun:

• Foundation: $35/month for 50K emails
• Additional: $0.80/1K after
• At 100K/month: ~$75

SendGrid:

• Essentials: $20/month for 40K emails
• Pro: $90/month for 100K
• Additional: $0.45/1K after

AWS SES:

• $0.10 per 1,000 emails
• At 100K/month: ~$10
• Requires more setup

Real Cost Comparison

Monthly Volume	LC Email	Mailgun	SendGrid	AWS SES
10,000	$0	$35	$20	$1
50,000	$0	$35	$50	$5
100,000	$0	$75	$90	$10

LC Email wins on price. But is the cost savings worth the deliverability risk?

Feature Breakdown

Analytics

LC Email:

• Basic sent/delivered status
• Limited open/click tracking
• No reputation monitoring
• Minimal bounce details

Custom SMTP:

• Detailed delivery logs
• Bounce categorization
• Complaint tracking
• Reputation dashboards
• Historical analytics

Bounce Handling

LC Email:

• Auto-suppresses some bounces
• Basic hard/soft distinction
• Limited visibility into reasons

Custom SMTP:

• Full bounce codes and reasons
• Configurable auto-suppression
• Exportable bounce lists
• Webhook notifications

Domain Control

LC Email:

• Limited DNS customization
• Shared tracking domains
• GHL manages authentication

Custom SMTP:

• Full DNS control
• Custom tracking domains
• You manage authentication
• Multiple domains possible

Sending Limits

LC Email:

• Varies by plan and account age
• Not clearly documented
• May throttle unexpectedly

Custom SMTP:

• Clear limits per ESP
• Scalable with plan upgrades
• Predictable behavior

When to Use LC Email

LC Email makes sense when:

1. Very low volume — Under 100 emails/day
2. Testing/development — Setting up new accounts
3. Non-critical email — Internal notifications
4. Budget constraints — Can't afford any additional cost
5. New to GHL — Learning the platform

LC Email Sweet Spot

• Personal follow-ups
• Low-stakes notifications
• Development and testing
• Businesses with excellent existing reputation

When to Use Custom SMTP

Switch to custom SMTP when:

1. Deliverability matters — Revenue depends on inbox placement
2. Volume exceeds 500/day — Regular sending at scale
3. Seeing spam folder issues — LC Email isn't placing
4. Running marketing campaigns — Bulk promotional email
5. Managing client accounts — Agency work
6. Need analytics — Understanding performance

Custom SMTP Is Essential For

• Marketing campaigns
• Automated sequences
• Agency client work
• E-commerce (abandoned cart, confirmations)
• Any revenue-generating email

Practitioner note: The break-even for custom SMTP is around 500 emails/day or first major campaign. If email drives revenue, the $35-50/month for proper infrastructure is negligible compared to lost conversions from spam folder placement.

Hybrid Approach

You can use both:

LC Email for:

• Low-priority internal notifications
• Testing new templates
• Non-client sub-accounts

Custom SMTP for:

• Client-facing email
• Marketing campaigns
• Revenue-critical sequences

How to Implement

1. Set default sending to LC Email in GHL settings
2. Configure custom SMTP for specific domains
3. Route important sends through custom SMTP
4. Use LC Email for everything else

Migration Path

If you're on LC Email and want to switch:

Step 1: Choose ESP

Recommendations:

• Mailgun — Best for most agencies
• SendGrid — Good for higher volumes
• AWS SES — Cheapest at scale

Step 2: Set Up Domain

Create and verify a sending domain in your ESP:

• Add DNS records (SPF, DKIM)
• Wait for verification
• Configure in GHL

Step 3: Warm Up

New domain/IP needs warming:

• Start at 50-100 emails/day
• Increase gradually over 4-6 weeks
• Send to engaged contacts first

See our warmup guide for details.

Step 4: Monitor

• Check ESP dashboard for delivery metrics
• Set up Google Postmaster Tools
• Watch for reputation changes

The Verdict

Choose LC Email if:

• Budget is extremely tight
• Volume is very low
• Deliverability isn't critical
• You're just testing GHL

Choose Custom SMTP if:

• Email drives revenue
• You're sending 500+ emails/day
• You're an agency
• Deliverability matters
• You need real analytics

For most agencies using GHL seriously, custom SMTP isn't optional—it's essential. The cost is minor compared to the revenue impact of proper inbox placement.

If you're unsure which approach fits your situation, schedule a consultation. I'll evaluate your sending patterns and recommend the right infrastructure.

Sources

• GoHighLevel: Email Services Documentation
• Mailgun: Pricing
• SendGrid: Pricing
• AWS SES: Pricing

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v1.0 · March 2026