How would you feel, waking up one morning to find out that your new promotion had taken off? Your email list of 800 grew to over 1,000. That would be amazing, right? Except, along with the excitement, you also get an email from your CRM provider letting you know that your monthly license cost is about to double because you’ve moved into the next pricing level! Suddenly, the wind is knocked right out of your sails. You haven’t even sold anything to those new prospects, but your expenses are already ratcheting up.
When you buy anything for your business, you want to get a clear picture of how much it will cost, right? You want to be confident that you’ll get value from the purchase and manage your cash flow effectively. However, when it comes to buying software—particularly CRM software—many buyers end up with nasty surprises.
Let’s explore some common areas where hidden costs lurk, so you can either avoid them or at least factor in the real cost when making your plans.
Licence/Subscription Costs
This is what everyone expects to pay—you know you need to buy the software. Most CRMs today follow a Software as a Service (SaaS) model, which means ongoing subscription fees. If you decide you hate the software and don’t use it, you can usually cancel at the end of the subscription term. But you need to remember that these costs don’t stop; to keep using the software, you must keep paying.
Even though subscription fees are the most obvious cost, there are still “gotcha” traps to watch for.
Buy the right version
One of the biggest mistakes is choosing the wrong version of the software. Many CRMs offer tiered plans like “Starter,” “Professional,” or “Enterprise,” and it’s easy to assume the basic plan will be enough—only to discover later that a critical feature you need is missing. For example, one of my clients learned the hard way that ActiveCampaign’s entry-level plan didn’t support the integration they needed with Calendly. They ended up upgrading both tools to make them compatible. Similarly, many CRMs divide functionality into modules like “Sales,” “Marketing,” and “Service.” Overlaps can be confusing, so scrutinise the feature comparisons on the pricing page to ensure you’re getting what you need.
Understand the volume drivers
Volume-related pricing is another hidden cost to look out for. Many CRMs charge based on database size, the number of emails you send, or technical metrics like storage space and API calls. These limits might seem generous at first, but they can become expensive as your business grows. For instance, Insightly’s mass email limits vary significantly between plans, and an urgent sales email to a list larger than your plan allows could leave you scrambling. The most common issue I’ve seen is pricing tied to the number of contacts. In the opening example, one client’s CRM costs nearly doubled overnight when their email list grew from 800 to 1,100 after a successful promotion.
And of course, the number of users can impact pricing. For some CRMs, pricing is strictly per user, while others bundle a limited number of users into higher-tier plans. For example, high-end CRMs like Salesforce and Microsoft Dynamics typically charge per user, whereas smaller-business solutions like ActiveCampaign have fixed user limits at each pricing level. You’ll need to think carefully about how your team will use the CRM and who needs access.
Look out for extras
Then there are additional extras to consider. For example, do you need a test or sandbox version of the software to safely review changes? Many providers, like Insightly, only offer these in their top-tier plans. Add-on tools, like Zapier for integrations, can also increase costs significantly, especially if your workflows rely on them.
Implementation and Running Costs
Unless you’re an expert in CRM software—or have someone on your team who is—you’ll likely need help setting up your system. This includes configuring the CRM, migrating your data, and integrating it with other systems.
Sometimes, this might mean investing in a course to learn the basics. In other cases, you’ll need external support. It’s important to clarify whether the CRM provider offers training and whether it’s free or paid. Don’t forget the cost of your team’s time, either—they’ll need to step away from their regular work to focus on implementation and training.
External help can be a major expense, especially if you hire consultants or implementation specialists. I’ve seen cases where implementation costs outstripped the annual subscription fees by a large margin. Even finding and vetting the right help can take time and money.
Remember, setting up your CRM isn’t a one-and-done process. Your customers, business, and the CRM software itself will evolve over time. Make sure you have either the internal skills or external support to keep everything running smoothly. Some support might be included with your license, but likely not as much as you expect.
Training and Change
Once your software is up and running, you’ll need to ensure your team knows how to use it effectively. Training will take time—not just for the trainer but also for your team members stepping away from their regular duties. Have you factored in these costs?
On top of that, ongoing management is needed to ensure the system is being used correctly and consistently. A well-trained team is key to realising the full value of your CRM investment.
To Sum Up
You might read all this and wonder why you’d even bother getting new software! But for many organisations, the benefits of using a CRM effectively far exceed the costs. The key is to ensure the costs are expected and that you have a clear vision of how you’ll use the software to drive revenue and improve customer relationships.
Have you experienced surprise CRM costs before? I’d love to hear your stories so others can learn from them.
And if you want to make sure you’re fully prepared, my course ‘CRM Game Plan’ will help you identify what you need and budget properly. Want to get started? Download my free checklist, ‘5 Questions to Ask Before You Buy a CRM,’and avoid hidden costs from day one!
