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Inexpensive Marketing email SW that Imbeds HTML in the Email Body??

Need recommendation for inexpensive marketing email sw that Embeds HTML in the Email Body rather than having to have the file as an attachment (icon).  SmartSerialMail was recommended; however, after downloading could not figure out how to embed the HTML; it only attached as an attachment.  Emailed back and forth with their customer support and not sure if it was a language problem (they are German), but they couldn't simply answer my question.  Appreciate any suggestions.  P.S. - My partner says he tried listserv last year and it crashed our SBS 2003 Exchange Server.  Thanks.
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Thanks, great resources.  Just one issue:  Do you know if these allow for the embedding of HTML directly into the email body rather than attaching it like an icon.  This would be a deal breaker because we want our recipients to immediately see our ad and not have to open an attachment.  Thanks.
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Sorry to ask a followup question after this is closed, but can any of these sw that you recommended manage the recipient list, such that if someone sends back an email and clicks "unsubscribe" then it will delete the recipient.  Or, can only more complex sw like listserv do that?  Thanks.
Yes, the subscription management functionality is much more complex than add/remove.

Here's how I do it.  I create a master spreadsheet (using Google Docs or Windows Live).  My clients then edit those spreadsheets, and I edit them, and whomever else... the important thing is that there is ONE master sheet accessible from anywhere.

The first time you go to send an email, you must log into your account (for this example I will refer to Cake Mail, but they all essentially work the same) and create an email list.  You can usually create as many lists as you want (ie. Newsletter List, Customer List, Company Employees, Test List, etc), and one person can belong to multiple lists.

So lets say we are going to send out our monthly newsletter.  I go and download the master newsletter list from Google Docs.  Then I log into Cake Mail and navigate to my "Newsletter List" and I upload my spreadsheet of email addresses.  Cake Mail takes care of any duplicates,  keeps track of who has unsubscribed, and manages bounce-back addresses.  You do not have to worry about manually removing people from your lists... Cake Mail will handle it.

It is important to note that if someone unsubscribes from your "Newsletter List", they will still receive emails if they are subscribed to one of the other lists.  Most email platforms will provide a "subscription management" page where the user can subscribe/unsubscribe from multiple lists.

Hope that helps.  It's very confusing, but once you do it enough, it will make sense.
Thanks, two questions:  1) How much is Cake Mail (and is it your sw), and 2) I think my boss prefers to host inside thus ensuring the control of his recipient list.  Is there sw that you can download and manage locally?
No, I am not an employee of Cake Mail.  I just feel like their interface is the easiest, and their customer service is awesome.

You can manage your own lists however you want.  The email platform will manage all unsubscribes and bounce-backs.  You can usually export a list of users that have unsubscribed or bounced-back.  If you want to remove bounce-backs from your local list, you must use EXCELs MATCH function to remove List A from List B... but you will have to figure that out on your own (or ask another question in the Excel category).  I highly recommend just letting your email platform handle all of that.

Most of these systems have a "Pay per send" program, where each recipient costs a fraction of a cent.  They also have a graduated payment scale that starts at around $75 - $99 /month for up to 10,000 recipients.  You just have to choose the configuration that best suits you.
You sound like you are completely new at bulk email.  Because of all the problems on the sending side and the differences between email clients, it can be one of the more difficult things you have tried to do.  You should realize that if you host your own software, that you run the risk of being blacklisted if you send too much.  In some cases, your ISP will cut you off.  That will affect ALL of your email.  The email services don't have that problem because they know how to manage it and they have their own servers.  "ensuring control" is a false sense of security.