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We recommend PHPList as an email marketing/newsletter tool. It is widely recognised as one of the best available and is in use by many large and small companies. It has many features you'd expect for sophisticated email tool but requires some user training and ongoing maintenance to keep the system running smoothly. We can install PHPList in a folder under your domain for a cost of $500. Ongoing support is at $120 per hour.
At the other end of the scale, we can assist you to setup a simple, easy to use enewsletter service that is quick to set up and free. There are several good services available and one that we recommend is MailChimp. It even has a plugin with WordPress to capture readers names and email addresses as a subscribe function.
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