Online sofware as a service (SaaS) or commercial off-the-shelf (COTS) offer a very lucrative starting plan to make you come onboard but after initial setting up you mostly end up getting a higher plan or an upgraded version as the starting plan does not have all the features you need.
When SaaS designers create their product they try to target as many industries as possible in order to achieve a huge customer base and in this process they develop their product in a generalized way that everybody can use irrespective of their sector. As a result you need to fit your business model into this generalized framework by creating a lot of custom fields and workflows. Hence you spend a lot of time adapting to the new system instead of focusing on your business and organization's growth.
And when you start to get some traction, you realize you need a feature that is not available under your current plan or you have outgrown the number of users seats available. Now you need to upgrade to a more expensive plan to continue running your business operations, This may happen multiple times in a year and hence can negatively impact your operation costs.
Cost Comparison of 20 users per month on different CRM platforms (as of August 2021):
|Plaform name||Monthly cost||Yearly cost|
|Zoho CRM (Professional)||700 USD||5,520 USD|
|Vtiger.com (One professional)||840 USD||7,200 USD|
|Pipedrive (Professional)||1,180 USD||11,976 USD|
|Microsoft Dynamics 365 (Sales Professional)||1,300 USD||15,600 USD|