SaaS pricing myths explained

The top four myths about SaaS pricing

Let’s explore the costs of SaaS, and offer some alternatives.

Monthly SaaS cost looks so reasonable, especially when you compare the one time cost of buying software, but here is what we know: by owning your CRM software you keep your system over 5, 7, and even 10+ years. The cost of a monthly subscription over many years can substantially add up.

This graph compares a 5 year life of a one time purchase with annual support renewed compared to the ongoing monthly fee. For 5 years software access costs are $18,000 less.

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See our cost comparison online tool: Find My Savings

Myth buster 1: SaaS providers advertise monthly but do not bill monthly.

Myth buster 2: It’s less costly to get started. This is not really true because SaaS providers require payment for the first year upfront.

I can get started easily. You start the trial, upload some data (already doing the work), then you are committed.

Myth buster 3: Someone has to migrate your data, create users and set up business rules. Are you a trained SaaS app administrator?

Myth buster 4: It’s a SaaS secret that the SaaS providers have consulting staffs at rates often at the highest in the industry, often over $200 an hour.

Myth buster 5: Most SaaS have full time admins – not just someone who does it occasionally.

I can start easy and integrate later. The reality: to integrate, your data has to be in their cloud. How are you going to get it there and keep it current?

Myth buster 6: In our experience, most firms don’t end up doing it due to complexity and cost.

Myth buster 7: One of the top requests we hear is for integration with accounting.

With SaaS I don’t need a server or network however, you have to provide internet and network access to other applications and keep it up to date.

Myth buster 8: Does your business run on only one application? While it is true that the SaaS app won’t require a lot, you still have to create back-ups for your other applications as well as security – so the savings here may be only storage, often a low cost item.

Many offer basic lower cost items to start but when you add opportunity management, customer service, etc., that requires additional monthly fees.

Myth buster 9: You may have a quote for $25 a month but the average user fee based on market feedback is $700-$1,000.

Myth buster 10: There are costs for increased storage, emails, etc. over time.

GoldMine has two alternatives to SaaS for you:

Alternative #1: Own it for the most affordable CRM. 

It is a one time purchase cost and no monthly fees. After two years your cost drops about 70% as compared to a SaaS subscription.

BONUS: Running all your apps in one environment allows for easier integration and lower cost.

  • All-in-one: GoldMine is all-in-one contact management, sales opportunity, marketing list management and campaigns, and customer service.
  • Use add-on products to add advanced features, important data management for integration, reporting tools built into GoldMine database to make it easier.
  • Industry leading CRM add-ons like Riva, Constant Contact, and QuoteWorks work with GoldMine.
  • Integration: GoldMine offers a way to query and view data from other applications you own. There are also prebuilt integrations for QuickBooks, Dynamics, and add-on software ERP.

Alternative #2: GoldMine Cloud  

If you don’t have a server, GoldMine Cloud has all the advantages of our all-in-one CRM with a very competitive monthly rate.

BONUS: GoldMine Cloud is a Desktop-as-a-Service, not a “one app SaaS”. You can move all your apps to the cloud – so instead of multiple SaaS subscriptions and data in many places, you can use GoldMine Cloud for one stop.

  • Add other apps you own to the desktop, for small incremental fees
  • Run your mail server in GoldMine Cloud
  • Enterprise class computing power security and back-up included
  • Include your existing Office 365 or a new Office 365 subscription
  • Use integration to QuickBooks in cloud
  • Your documents are also stored in cloud

If you stop, you can download your GoldMine files and run on your server with 30 days notice.
If you already run GoldMine, you can upload your existing files.

GoldMine Cloud meets all data security and audit requirements.

See our cost comparison online tool: Find My Savings

About GoldMine

GoldMine® is a leading provider of relationship management solutions designed for all businesses. With over 1 million users managing over 1 billion relationships, GoldMine is one of the most widely used relationship management technologies in the world. GoldMine is a division of Heat Software, headquartered in Milpitas, California, USA.

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