In March 2024, HubSpot began a significant change to its pricing model by shifting to a more flexible structure for businesses of various sizes. This change demonstrates HubSpot's commitment to adapting its offerings to meet companies' needs for flexibility regarding their digital services.
As HubSpot Gold Partners, we are excited about the new opportunities this price change brings to our customers and what we at Mild can offer. Let's dive deeper and compare the different pricing models to understand how the change affects your business.
The previous pricing model
Traditionally, HubSpot's pricing model was tier-based, with a free CRM that could be upgraded to the different levels of Starter, Professional, and Enterprise across the categories of Marketing, Sales, and Service. This structure was designed to be scalable for its customers, from startups to large enterprises.
The old model offered a clear growth proposition, which often led to higher costs for smaller businesses that needed advanced features available only at higher levels. This made the pricing model less attractive for smaller players.
The new seat-based pricing model
HubSpot's new seat-based pricing model represents a significant shift towards increased flexibility and scalability. In the new pricing model, pricing is determined by the number of Core Seats, which are active users who can edit, update, and interact with the system.
The new pricing model introduces free View Only Seats for team members who need access to data but do not need to add or edit data in HubSpot.
This new setup aims to align costs more closely with actual usage and needs, potentially offering a more cost-effective solution for businesses of all sizes.
Key features of the new model
- Core Seats and View Only Seats: Core Seats are for active users, while View Only Seats are free, offering a cost-effective way to provide access to more team members.
- No Seat Minimums: The removal of seat minimums for Sales and Service Hubs provides unparalleled flexibility, allowing companies to scale their operations without unnecessary costs, as they no longer pay for unused seats, which was common previously.
- Pay as You Grow: This model supports business growth by allowing the addition of Core Seats as needed, ensuring that costs are directly linked to usage and needs.
Cost comparison: old vs. new
- For Small Teams and Startups: The new model can be more cost-effective, especially for those needing fewer Core Seats and utilizing free View Only Seats.
- For Growing Businesses: The flexibility to add Core Seats as the company grows, without jumping to a higher pricing model, offers a scalable solution that can adapt to changing needs.
- For Large Enterprises: While the old model provided predictability in budgeting, the new pay-as-you-use approach can result in cost savings, depending on how companies manage their setup of Core Seats and View Only Seats.
Maximizing the New Pricing Model
How can you maximize the benefits of the new HubSpot pricing model?
- Evaluate Your Team's Needs: Assess who needs Core Seats versus View Only Seats and optimize your seat requirements based on actual usage.
- Plan for Growth: The new model's scalability allows for the gradual addition of Core Seats, making it easier to budget for growth.
- Leverage HubSpot's AI and Automation: With access to AI tools across all levels, explore features that can boost productivity and provide insights to drive your business forward.
HubSpot's transition to a seat-based pricing model reflects their understanding of the diverse needs of their users. By offering a model that scales with business growth and actual usage, HubSpot continues to position itself as a flexible and essential platform for companies navigating the complexities of digital marketing, sales, and service in today's digital world.
Whether you are a small startup or a larger growing business, understanding and adapting to this new pricing model will be key to maximizing your investment in HubSpot.
In the ever-changing digital landscape, flexibility and adaptation to evolving business needs are more important than ever.
Curious about HubSpot?
Perhaps you would like a walkthrough of HubSpot and explore the possibilities, or we would be happy to help you with your existing setup to reduce costs.
