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Is Salesforce expensive?



Is Salesforce expensive?


Salesforce has become synonymous with enterprise software and cloud computing services. The company's flagship product -- Sales Cloud -- offers an all-encompassing suite of tools that cover everything from lead generation to customer service management.

In addition, its professional services division provides consulting and training support as well as mobile apps development. And then there are add-on products such as Service Cloud (comprehensive marketing automation) or Workday (human resources).

The thing about Salesforce is that you don't buy just one app. You need them all, which means spending big bucks in order to get full functionality. A recent report by Gartner estimated the average total cost at $4,400 per employee per year when factoring hardware, maintenance, personnel salaries, IT staff time, implementation costs, security and data migration fees into account. That may sound high but if you consider how many employees use those applications per month, this amount starts to look more manageable.

To see what we mean, let’s compare some popular CRMs side-by-side. Here are five top contenders according to Statista:

1. Microsoft Dynamics 365 Business Central ($819/month): More than 1 million users worldwide have access to this platform, making it the largest provider of Customer Relationship Management solutions globally. It integrates directly with Office 365, thus allowing users to collaborate seamlessly across devices and platforms.

2. Oracle JD Edwards EnterpriseOne ($3,000+): This solution was originally developed in 1989 for manufacturing companies but now covers several industries including retail, healthcare, banking and insurance.

3. SAP SuccessFactors HCM Cloud Edition ($2,900-$7,300): This application is designed specifically for midmarket organizations, focusing solely on human capital administration functions. As such, it lacks advanced features found in larger enterprises but boasts lower overall pricing compared to other competitors.

4. Sage Intacct ($3,500+): Based on QuickBooks, this tool allows businesses to track their income and expenses via simple spreadsheets. In addition, it also lets owners manage payroll and make reports related to tax filings. However, Intacct doesn't offer integration with third parties.

5. Zoho CRM ($199+): This online collaboration tool facilitates two-way communication between professionals within different departments. Its intuitive interface makes it easy for users to record meetings, create notes, attach documents and send emails. Plus, it comes preinstalled on millions of desktops around the world.

It seems that only one company stands out from the crowd, and unfortunately, it isn't Salesforce. Let's take a closer look at why Salesforce Com costs so much...

Why does Salesforce Com cost so much?

By introducing new offerings every few months, Salesforce constantly tries to stay ahead of rivals' strategies. At times, they might even change pricing models completely, something that happened back in 2015 after acquiring DemandWare. During that period, Salesforce lowered prices while simultaneously increasing limits for each plan tier. For example, the entry-level Starter package used to start at $99 per month, whereas today it's priced at $39. Moreover, if you want extra capacity, you'll have to pay $29 per user per month instead of the previous $49 rate.

As a result, customers often end up paying higher bills than necessary since they're not aware of these changes. To avoid getting stuck in a vicious cycle where your monthly expenditure goes up and down, always check whether rates changed before signing up for a contract. If you do decide to stick to the current terms, keep in mind that Salesforce plans come with no cancellation fee.

On the flip side, Salesforce will raise prices as soon as competition becomes stiffer. When Google launched its own competitor called Journey, Salesforce increased prices for its existing customers without giving them advance notice. Needless to say, people who were already happy with their subscription weren't pleased with this situation.

Another reason why Salesforce tends to be pricey is because of its reliance on subscriptions. Unlike traditional software vendors, whose revenue mostly relies upon direct purchases made by individual clients, Salesforce gets paid through recurring payments. Since users must renew their contracts every few months, the company keeps charging them money regardless of whether they actually use certain plans.

While this approach can work in theory, it significantly increases the risk of losing customers due to nonpayment.

Why is Salesforce worth so much?

Nowadays, most entrepreneurs agree that having multiple channels of distribution is vital to success. Therefore, picking the right channel matters a lot when trying to reach potential buyers. Unfortunately, figuring out which method works best requires lots of trial and error.

For instance, if you run a local bookstore, chances are good that you'd prefer physical books over digital copies. On the same token, if you operate a fast food chain, offering delivery services is probably essential. One way to minimize risks associated with experimenting with various media outlets is hiring experts from outside.

That's precisely what Salesforce did when setting up its first brick-and-mortar location in San Francisco in 2002. Having learned from past mistakes, the company hired consultants who helped build the store based on real client feedback. Thanks to their guidance, Salesforce went from selling virtual goods to opening physical stores and eventually expanding internationally.

Not long after, the founders started looking for investors willing to fund future expansions. Eventually, they sold part ownership to SoftTech VC, a venture capitalist firm founded by Marc Benioff himself. Today, Benioff serves as CEO of both Salesforce and his own private equity firm, Accomplice Partners.

Although he hasn't been involved in day-to-day operations since 2017, Benioff still owns roughly 34 percent of shares in the company. His influence helps determine key decisions concerning the direction taken by Salesforce, and that certainly plays a role in driving up its costs.

Also, unlike traditional providers, Salesforce focuses exclusively on building relationships rather than simply helping businesses meet quotas. Think of it as a personal assistant taking care of your daily needs rather than someone tasked with tracking leads and calls. While doing so, the company takes advantage of artificial intelligence technology, machine learning algorithms and natural language processing to provide accurate insights.

Because of this unique proposition, Salesforce enjoys skyrocketing growth rates. According to research performed by EY Global, the number of active users grew by 62% last year, reaching 15.9 million worldwide. By 2021, the figure could increase to 20.6 million thanks to continued investments in R&D projects.

This impressive performance translates into significant earnings for Salesforce. Take 2018, for example. Revenue tripled to approximately $11 billion, marking a 10-year annual growth streak. Net Income rose by 68%, resulting in $6.7 billion of free cash flow during Q4 alone.

However, despite being consistently profitable, Salesforce remains highly unprofitable as a whole. After adjusting for stock options and taxes, Profit Before Tax stood at -$1.3 billion for 2019. Furthermore, analysts predict that Salesforce will lose money again next fiscal year unless it manages to improve margins.

Still uncertain about Salesforce's financial standing? No problem! Check our guide detailing common questions regarding SaaS profitability.



Is Salesforce the most expensive CRM?

When comparing Salesforce to other enterprise software giants, it appears that the latter is indeed the priciest option available. Still, it would be wrong to label it the "most expensive" CRM, though.

After all, there are plenty of CRMs that offer similar capabilities for less money. Some examples include HubSpot, Freshworks, InfusionSoft, Joomla!, Oracle WebCenter and Xero. Yet, we believe that none of these alternatives has quite captured the hearts of large corporations like Salesforce has done.

Websites like The Startup List, Inc., Toptal Network and VentureBeat regularly publish insightful articles highlighting the reasons behind the popularity of Salesforce. Below are three major factors cited by marketers who chose this software vendor.

Firstly, Salesforce enables teams to work together effortlessly. Aside from providing detailed analytics, the system also supports cross-functional teamwork. Secondly, Salespeople are able to easily share files and records throughout the organization and across departments. Lastly, it gives managers the ability to view activity reports showing exactly who worked on specific tasks and when.

Given these perks, it shouldn't surprise anyone that Salesforce ranks among Forbes Magazine's list of Best Companies for Remote Workers in 2020.

How much does Salesforce cost for small business?

If you've decided that using Salesforce suits your budget perfectly fine, here's some advice. Don't expect too much from the starter version. Even though it includes basic functionalities, the Starter plan falls short of letting you handle complex accounting processes. Also, you won't receive dedicated technical support either. Instead, you may rely on the help of outsourced workers or ask colleagues from another department.

Since you're limited to a single territory, the Starter plan should suffice until your sales grow substantially. Once you hit the point where you require additional resources, upgrade to Professional. Remember, you can scale up anytime depending on your requirements.

When you think about using software to manage your business or customer relationships, what do you picture in mind? For many people, that image will be something simple and cheap -- perhaps an Excel spreadsheet with some basic charts thrown into the mix.

Sales force automation (SFA) vendors are trying to change our minds by offering more sophisticated tech at lower prices than traditional options. A new report from Gartner shows SFA has grown over 100 percent since 2016, and its growth should continue as more companies realize how powerful these tools become when used correctly. In fact, nearly one in five global enterprises plan to invest in SFAs this year.

"The market continues to grow," says John Rampton, CEO of online marketing agency Visible Measures. "It's not going away."

But there's still room for skepticism among potential customers who have never tried such solutions before. How easy would they find them to use? Is their budget too tight to consider investing now but could open up once they've seen value in the system? And most importantly, is Salesforce expensive? Here's everything you need to know.

How much does a Salesforce membership cost?

A single member subscription to Sales Cloud starts around $19 per person per month for the enterprise edition and $14 per person per month for the community version. The entry point for teams below 50 users varies depending on which type of package they select, so let's break down the pricing structure.

For example, if someone wants all features across both editions, here are the monthly plans offered:

Community Edition: Single User = $12/month ($9.75/user), Annual Recurring Membership Fee= $1,200

Enterprise Edition: Small Business = $10/month ($8/month/$100 minimum order), Annual Recurring Membership Fee= $2,400

Here's another way to look at those numbers: If two employees wanted to pay together through a recurring annual payment each month, they'd spend less under Community Editions' model. Under Enterprise Editions' model, however, they'd end up paying double because of the higher minimum order required.

If you're wondering why anyone would want to purchase individual licenses instead of subscribing to a service, keep reading to learn about the differences between a standard license and a membership plan.

In addition, Salesforce offers several add-ons designed specifically to meet different needs. Let's say, for instance, that a company sells physical products. They might choose to offer additional services based on what kind of orders come in. This helps boost revenue while reducing costs and overhead. Some examples include shipping management, inventory tracking, product configurators, etc. These packages range in price from $5-$20 per month.

How much is a standard Salesforce license?

This is where things get confusing. When you buy a regular license for Salesforce, you don't actually own anything. Instead, you receive access to certain apps within the platform. Think of it like renting out space inside a shared office building without buying shares in the actual organization. You'll only get charged for the time you use the app. There are no hidden fees associated with the solution. However, you won't enjoy the same benefits as memberships, including free upgrades, training, and other perks.

Let's take a closer look at the pricing structures for both types of subscriptions above. First off, notice how Salesforce charges extra for every additional user beyond the first one. That means even though you initially paid for just yourself, you're being billed for everyone else in the company. It also means that if you later decide to expand your workforce, you may face steep increases in monthly expenses. Additionally, some businesses require multiple licenses due to specialized requirements. So, what happens then? Unfortunately, you must wait until next year to renew your contract.

Standard licenses often work well for personal accounts and organizations with fewer than 10 users. But for larger ones, they can quickly turn costly.

Finally, you should note that unlike memberships, you cannot bundle standard licenses together. Your total number of users isn't split evenly. So, if you bought three separate licenses, you'd pay four times as much as if you had joined a group.

How much is Salesforce per month for a small business?

Now, let's talk about the real question: What is Salesforce's pricing structure for smaller businesses? As mentioned earlier, Salesforce offers several special deals aimed directly toward SMEs. To see exactly how much a typical small business pays, we reached out to a few companies who currently utilize Sales Force. One was Carat Solutions, a digital asset management firm located in New York City. Another was BizTech Group, a cloud computing company based in Tampa, Florida. We also spoke with Mike Vetter, Director of Product Management at Jigsaw, a leading provider of developer platforms and technology consulting firms headquartered in San Francisco. All told, we were able to provide input from six unique clients.

Below is a breakdown of the average pricing points provided by each client. Keep in mind that it doesn't account for the varying tiers available under specific circumstances. Also, remember that these rates reflect usage of the entire suite of applications available on the platform including: Sales Cloud, Service Cloud, Chatter, Domo, Files Go Real Time, Einstein AI, Canvas, Unacast, Lightning Platform, OrgSync, and Marketing Automation.

Carat Solutions | Uses Sales Cloud Enterprise

Manager: Aaron Smith, CTO, Carat Solutions

Annual Subscription: $7,000+

Monthly Rate: $4,997+

Total Cost Per Year: $29,998+

Mike Vetter at Jigsaw | Uses Sales Cloud Community Edition

Manager: Michael Vetter, Director of Product Management, Jigsaw

Annual Subscription: $3,500+

Monthly Rate: $2,550+

Total Cost Per Year: $6,050+

Biztech Group | Uses Sales Cloud Community Edition

Owner: Matt Zawislak, Founder & Chief Executive Officer, BizTech Group LLC

Annual Subscription: $7,000

Monthly Rate: $4,900

Total Cost Per Year: $28,800

Average Total Price Over 3 Years: $23,700

Vettery Conclusion

So, what did we learn? Well, it seems pretty clear that Salesforce provides plenty of flexibility for businesses of various sizes. Sure, it's pricier on the front end compared to competitors, but it comes with enough perks to make up for that initial sting. Plus, the best part is that you can scale up gradually as needed without having to worry about unexpected spikes.

Still confused? Don't fret! Just go ahead and give us a call today. Our team would love to help walk you through the process and answer any questions along the way.

Salesforce has become synonymous with enterprise software. It's one of the most popular tools in the SaaS category and serves as an ideal platform to manage customer relationships or even run entire businesses from -- all without ever touching code.

But what if you're not trying to grow your own empire but rather just want something that will help your current team be more efficient? How about using cloud computing services instead of paying for them outright? That might sound pricey at first glance, especially when compared to other options such as Microsoft 365 which costs around $6 per person each year. However, there are ways to find out whether this option makes sense for your company before committing. Read on to learn how you can get started with Salesforce today!

How much is Salesforce for a small company?

The best way to figure out how much Salesforce actually costs is to talk directly to someone who's been through the process themselves. There are many different pricing plans available depending on your needs, so getting an accurate quote requires some legwork. If you have access to a mentor within your organization, they can assist you by answering questions regarding their experience with the service. You may also want to reach out to a consultant via email to schedule a call. Once you've determined exactly which plan works best for you, you'll need to decide how long you intend to keep your contract. Most companies stay on Salesforce for two years unless otherwise agreed upon. Don't worry though, those contracts aren't binding until both parties sign off.

If you don't know anyone familiar enough with Salesforce to give you advice, you could try contacting its support team directly. In addition to providing basic training for new users, they should be able to answer many of your questions. The good news is that these resources won't cost anything extra since you already pay Salesforce every month.

In terms of features, standard accounts generally offer everything you'd expect from a modern CRM system. This includes tracking tasks, maintaining notes, creating custom reports, setting up integrations, etc. For additional functionality, you can opt into premium add-ons called "Partner" packages. These bundles come with unique capabilities like data analytics and marketing automation. They do require separate payments, however, so make sure you understand the differences between various tiers beforehand.

On top of that, you must take note of Salesforce's usage limits. Standard licenses allow for five active users at once while Partner plans cap monthly active users at 15. With so many people working together, this becomes crucial information to ensure everyone doesn't go over their allotted time slots.

Can a small business afford Salesforce?

Once you've decided to move forward with renting Salesforce, it's important to determine whether your budget allows for the expense. To start, look at your existing expenses and compare them against what you would spend annually on Salesforce. Keep in mind that this number will fluctuate based on factors including your total headcount and average salary. Also, remember that you only count recurring fees here, meaning that you must subtract fixed overhead items like rent from the overall calculation.

You should then consider your projected growth rate. Are you expecting substantial increases in productivity next quarter due to better planning or increased efficiency? Will your revenue increase because of enhanced client satisfaction? Or maybe you simply anticipate needing more space for future employees. Whatever the reason, think carefully about how quickly you hope to see progress before settling on a specific dollar amount.

Finally, factor in potential savings. Do you receive discounts for hiring multiple consultants? Would moving to a cheaper region reduce your operating costs significantly? Can you negotiate lower prices for certain products? By doing research ahead of time, you should hopefully identify opportunities where you can save money.

With that being said, having a strong financial foundation is essential for ensuring success during your tenure with Salesforce. Make sure you put systems in place to improve cash flow throughout the year, keeping track of spending, forecasting, and reporting performance metrics.

When comparing prices across platforms, it pays to shop around. While Salesforce offers a straightforward breakdown of annual pricing structures, competitors' offerings often leave room for wiggle room. Try reaching out to several trusted sources to find out what others charge for similar solutions. Even if you end up paying slightly higher than anticipated, you'll likely score yourself a discount that beats shelling out full price upfront.

To recap, let's say you currently pay $5,000 per month for 10 users. After accounting for taxes, employee salaries, and overhead, you discover that Salesforce charges roughly $4,200 per month. Is this still worth it? That depends on your individual situation and goals. If you aim to expand rapidly, perhaps you wouldn't notice too big of a difference. On the flipside, if you want to avoid growing at all, you probably don't want to waste valuable resources on another solution. Ultimately, the decision is yours alone to make after weighing your preferences.



How much does a Salesforce subscription cost?

As mentioned previously, the price of Salesforce varies according to your chosen tier, although it's always possible to customize a package to meet your exact specifications. Here we discuss three common scenarios: A solo freelancer, a single department, and a medium-sized business.

For individuals looking to work remotely, Salesforce Starter Edition provides 5 users under a 30-day trial period. Afterwards, customers pay either $19.99/month ($17.95 + applicable tax) or $28.75/month ($24.50 + applicable tax). Meanwhile, Enterprise Essentials is priced at $33.95/user per month (or $39.70/user per month plus applicable tax). And finally, Partner Ease starts at $48.00/user per month ($54.30/user per month plus applicable tax), which means you'll pay less than half of what traditional clients typically shell out.

Smaller organizations usually choose Professional Plus or Enterprise Essentials, starting at $65.60/person each month. Partnerships start at $100/month, though again, you'll pay far less than what larger firms typically pay.

If you're interested in upgrading to Premium Cloud Pricing, contact Sales Support to ask about eligibility. Otherwise, consult our guide on picking the right Sales Automation Platform to find out which product suits your needs best.

Keep in mind that pricing changes occasionally. When making a purchase in 2021, check for updates online before finalizing the deal. Some providers may adjust their rates later down the line to reflect market conditions. As a result, if you're flexible with payment methods, you may be able to lock in a discounted rate.

Can I use Salesforce for free?

While it isn't feasible for smaller teams to subscribe completely free of charge, you can benefit from limited versions of Salesforce's offering. First, if you haven't done so yet, download the app on your mobile device. Since it's designed primarily for remote workers, you shouldn't encounter too many problems navigating Salesforce on your phone. Second, log in to your account and click Create New App to begin building forms, connecting apps, and automating processes. Thirdly, explore the dashboard to gain familiarity with key features like Chatter, Lightning Web Components, and Visual Design Tools.

A large portion of Salesforce's content remains unavailable outside of its official portal. Luckily, you can supplement missing elements by visiting third party websites. We recommend using Zapier to integrate your favorite web applications. Alternatively, you can also request support from dedicated communities on Reddit and LinkedIn.

Now that you know everything there is to know about Salesforce, why not get started today?! Whether you're hoping to streamline internal operations or boost freelance income, taking advantage of this industry leader's extensive suite of benefits is never a bad idea. Take advantage of Salesforce's flexibility and adaptability to suit your particular requirements.

Looking to upgrade your Salesforce knowledge further? Check out our list of helpful articles.


Author

Mathieu Picard

CEO, Anyleads, San Francisco

We are the leading marketing automation platform serving more than 100,000 businesses daily. We operate in 3 countries, based in San Francisco, New York, Paris & London.

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Anyleads
Enrichment data software to find emails

The perfect product to generate high quality leads from B2B to B2C.

  • Access / extract from more than +15M B2B companies.
  • Extact local businesses from Google Maps.
  • Find company domains from names.
  • Get all employees emails from a list of domains.
  • Send all the data to your CRM via Zapier.
illustration
Anyleads
Email, phone & social media extractor

Extract emails, phones on the page of websites and download it to Excel or CSV.

  • Upload a list of websites to extract emails.
  • Export phone numbers from landing page.
  • Export social media urls (Facebook, Instagram ..) from pages.
  • Export to CSV or Excel in one click.
  • Send the data to your CRM or other software.
illustration
Anyleads
Find emails from first name, last name and company name

Discover emails from a CSV from 3 columns (first name, last name, and company name).

  • Upload big batch of CSV online to find emails.
  • Email discovery is fast and build emails from patterns.
  • Find valid emails from 3 data points.
  • Export to CSV or Excel in one click.
  • Send the data collected to your CRM or any software.
illustration
Anyleads
Chatbot solution to capture and convert visitors into leads

Transform your visitors into leads by capturing information from them.

  • Install unlimited chatbot to capture unlimited leads.
  • Customize the scenario of your chatbot.
  • Customize the color, position and the widget.
  • Export the leads into Excel or CSV.
  • Send directly the leads captured to your CRM or any software.
illustration
Anyleads
Daily registered domains with leads information

Discover each day thousands of new companies registered on Internet.

  • Prospect new businesses registered on Internet.
  • Transfer leads to campaigns to send emails on it.
  • Thousands of new leads uploaded each day.
  • Export all the leads into Excel or CSV.
  • Send collected data to your CRM or other software.
illustration
Anyleads
Online review management to get more online reviews

Capture reviews from visitors, and increase your reviews on Google and Facebook pages.

  • Install and customize the widget on your website.
  • Collect more reviews, increase your SEO position.
  • Grow your Facebook page and Google page.
  • Export reviews into Excel or CSV.
  • Send reviews directly to your CRM.
illustration
Anyleads
Sequence (cadence) / newsletter campaigns tool

Send newsletter or sales emails with automatic follow ups.

  • Create unlimited campaigns and connect unlimited senders.
  • Warm up feature to increase your deliverability.
  • Send personalized images with our image personalization tool.
  • Send events to your CRM such as opens, clicks and replies.
  • Generate more sales meeting with automatic follow ups.
illustration
Anyleads
API to prevent fake emails registration on your service

Each time someone registers to your service, ping this API to verify if the email is correct.

  • Verify if an email exists to prevent fake emails.
  • Export results into Excel or CSV.
  • Ping in real time our API or plug it in your system.
  • Instant email verification.
  • Send collected data to your CRM or other software.
illustration
Anyleads
Social proof notification widget tool

Generate and display notifications on your website to show random messages to your visitors. This will increase your sales and credibility.

  • Add unlimited websites.
  • Add unlimited notifications.
  • Create geo-targeted notifications.
  • Display random fake notifications.
  • Send collected data to your CRM or other software.
illustration
Anyleads
Extract B2B emails from B2B social media

Extract emails and contact from B2B social media. Find new leads in one click and create targeted lists.

  • Create unlimted lists, filter by country, industry, size and job title.
  • Hyper targeted lead generation.
  • Generate B2B and B2C lists in one click.
  • Super fast emails generation.
  • Send leads to your CRM or other software.