Usually not. In Microsoft 365 a shared mailbox is free and needs no licence while it stays under fifty gigabytes, and an alias on an existing mailbox costs nothing. Most small businesses should be paying nothing extra for info@ or sales@. There are a few cases where a licence is genuinely needed, covered below, along with the common mistake of paying for a full user that nobody signs in to.
Three ways to set up a general address
An alias is an extra address on a mailbox that already exists. If Sam looks after enquiries, info@ can simply be an alias on Sam’s mailbox. Mail arrives in Sam’s inbox, Sam can reply as info@, and there is nothing to pay. It suits one person handling the address alone.
A shared mailbox is a separate mailbox with its own inbox, sent items and folders that several people open from their own Outlook. Everyone with access sees the same messages, sees what has been answered, and can send as the shared address. Nobody signs in to it directly, which is why Microsoft 365 does not charge for it. For an address two or more people watch, this is almost always right.
A distribution group is not a mailbox at all. It is a list. Mail sent to the group address is copied into each member’s own inbox and nothing is stored centrally. It suits team announcements but is poor for enquiries, because nobody can see whether a colleague has replied.
When you do need a licence
A shared mailbox needs a licence in four cases.
- Someone needs to sign in to it directly with its own password.
- It needs its own calendar for bookings, with invitations accepted under the shared name.
- It goes over fifty gigabytes of stored mail, which takes years but does happen.
- It needs archiving, either an online archive or a legal hold that keeps every message even if someone deletes it.
If none apply, the shared mailbox should be unlicensed.
The common mistake
The usual pattern is that info@ was created years ago as a full user, with a password, so it could be set up on a phone. Someone has paid a full licence for it ever since, on top of the person who actually reads it. Multiply that by sales@ and accounts@ and the waste adds up. Converting a user mailbox to a shared mailbox takes minutes, keeps every email, and frees the licence.
The reverse also happens. info@ is an alias on the owner’s mailbox, the owner goes on holiday, and nobody else can see the enquiries. Moving to a shared mailbox fixes that, still at no cost.
How to review what you are paying for
Open the Microsoft 365 admin centre and look at the users list. For every account with a licence, ask whether a real person signs in to it. Any licensed account that exists only to receive mail at a general address is a candidate to convert. Also check the shared mailboxes list for any licensed by accident, and look for licences still assigned to people who have left.
What to do next
If you are not sure how your general address is set up, ask whoever manages your Microsoft 365 whether it is an alias, a shared mailbox or a licensed user. If it is a licensed user nobody signs in to, convert it. For a full picture of every licence you pay for and whether each earns its keep, a Microsoft 365 licence audit does exactly that.
Can a shared mailbox send email as info@?
Yes. Anyone given send as permission can reply from the shared address, and the reply appears to come from info@.
Will I lose old emails if I convert a user mailbox to a shared mailbox?
No. Every message, folder and sent item stays. Only the direct sign in is removed, along with the licence.
Can I use a shared mailbox on my phone?
Yes. The Outlook app can open a shared mailbox under your own account, so it needs no password of its own.
If this is happening in your business and you would like it sorted, call DM1 on (08) 6202 6012 or send us a message. We look after IT, Microsoft 365, websites and domain names for Perth small businesses.