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Pricing

The Hidden Cost of Per-Seat CRM Pricing (and the Flat-Rate Alternative)

SB
Sam Ball
5 min read
In short: Most CRMs charge per user, so the more of your team you add, the more you pay. That punishes you for doing the one thing a CRM is supposed to enable: getting everyone on the same system. Per-seat costs stack up fast (a team of ten at £85 a seat is £850 a month before extras), and they quietly push you to ration access. A flat-rate CRM with unlimited users removes both problems, and usually costs a fraction of the per-seat bill.

When you look at a CRM's headline price, you are usually looking at the cost for one person. The real number is that figure times your team, every month, forever. Per-seat pricing is the default across the big platforms, and for a small business it has two costs: the obvious one on the invoice, and a quieter one that undermines the whole point of having a CRM.

How per-seat adds up

The model is simple: you pay for each user. In the UK, HubSpot runs from £18 per seat per month at Starter to £85 per seat at Professional. So:

  • A team of five on Professional is around £425 a month in seats.
  • A team of ten is around £850 a month.

And seats are just the start. Professional and Enterprise tiers add mandatory onboarding fees (£1,200 to £6,090 per hub), there is a roughly 5% annual renewal uplift, and costs can climb again as your contact database grows. The headline per-seat price is rarely the real per-month price. (HubSpot figures are UK list prices excluding VAT, correct at the time of writing.)

The quieter cost: you start rationing access

This is the part that does the real damage. When every login has a price, you start asking who really needs one. The warehouse team, the part-timer on the trade counter, the person who only needs to check an order now and then: they do not get a seat, because each seat costs money.

But a CRM only works when it is the single place everything lives. The moment some of your people are locked out, they go back to spreadsheets, notepads and shouting across the office, and your one source of truth has holes in it. Per-seat pricing nudges you, month after month, towards exactly the fragmented setup the CRM was supposed to replace.

The flat-rate alternative

Flat-rate pricing charges one price no matter how many people use the system. Everyone gets access: the office, the warehouse, the counter, the part-timers, at no extra cost. That is the model behind Jeanus, where every plan includes unlimited users, from £49 a month.

The saving against per-seat can be large. A flat plan covering a team of ten can cost a small fraction of £850 a month, and there is no onboarding bill or renewal uplift waiting in the wings. Just as importantly, because access is free, you can actually get your whole team on the system, which is the only way a CRM does its job. See the side-by-side at Jeanus vs HubSpot.

When per-seat is fine

To be fair about it: per-seat is not always the wrong choice. If you are a team of one or two, or you specifically need a particular platform's depth and only a couple of people will ever touch it, paying per seat can be perfectly sensible. The maths turns against it as soon as you want more than a handful of people on the system, which, for most growing small businesses, is sooner than you would think.

So when you next price up a CRM, do the sum that matters: not the cost for one person, but the cost for everyone who should be using it. That is the number that decides whether per-seat or flat-rate is right for you.

Want your whole team on one system without paying per head?
See Jeanus pricing: unlimited users on every plan.
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About the author: Sam Ball, Director and Founder of Pixel and Shovel, makers of Jeanus, the CRM and website platform for small businesses. Background: over a decade in wholesale and distribution before building tools for the sector.

Quick questions

Why do CRMs charge per user?
Per-seat pricing ties the cost to the number of people using the software, so the price grows as your team grows. It suits the vendor's revenue, but it means a small business pays more every time it brings another person onto the system.
Is there a CRM with unlimited users?
Yes. Flat-rate CRMs charge one price regardless of how many people use them. Jeanus, for example, includes unlimited users on every plan, from £49 a month, so adding your whole team costs nothing extra.
How much can flat-rate pricing save a small team?
It depends on team size. A team of ten on a per-seat CRM at £85 per seat per month would pay £850 a month in seats alone, before onboarding fees. A flat-rate plan covering the same team can be a small fraction of that.
When is per-seat pricing okay?
Per-seat can work for very small teams of one or two, or where you specifically need a platform's depth and only a couple of people will ever use it. Beyond a handful of users, flat-rate unlimited pricing usually wins on cost.

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