HubSpot Pricing Changes 2024: Maximising Your Subscription and Renewal Strategies

This blog is based on our recent HUG webinar, 'HubSpot Pricing Changes: How to Get the Best Out of Your Renewal.' You can watch the webinar here.

HubSpot’s latest pricing update, which took effect on March 5, 2024, represents a significant shift in how businesses purchase and use the platform. This new model is designed to enhance flexibility, accessibility, and value, making it easier for companies of all sizes to tailor their HubSpot subscriptions to meet their specific needs.

Overview of the 2024 HubSpot Pricing Changes

HubSpot’s new pricing model introduces the seats-based concept common to Sales and Service Hubs to Marketing, Operations, and Content Hub. This applies across all subscription tiers. This approach offers tailored solutions for different organisational roles, making it easier for businesses to manage their HubSpot licenses effectively.

• Seat-Based Pricing Model: HubSpot has introduced three types of seats—Core, View-Only, and Partner Seats—each tailored to different user needs and organisational roles.
• Elimination of Minimum Seat Requirements: HubSpot removed the minimum seat requirements for Sales Hub and Service Hub, making it easier for businesses to access enterprise-level software at a lower entry cost.
• Core and View-Only Seats: The introduction of Core Seats on the other Hubs (previously there was no seat limit for Marketing, Ops, and Content Hub).
  
  Core Seats allow full editing capabilities.
  View-Only Seats allow access without editing rights.

Key Updates and Their Impact

1. No More Minimum Seat Requirements: HubSpot has removed the minimum seat requirements for Sales Hub and Service Hub, which were set at five for Professional and ten for Enterprise tiers. This change allows businesses to start with as few as one Seat and scale their usage as needed.
2. Core Seat Flexibility: A single Starter Core Seat now provides access to all five Hubs—Marketing, Sales, Service, CMS, and Ops Hub—making it easier for smaller businesses to leverage HubSpot’s full range of tools without being locked into unnecessary seats.
3. Changes for Existing Customers: While existing customers won’t see immediate changes to their billing, they will likely be transitioned to the new pricing model at their next renewal. Depending on how closely their current usage aligns with the new structure, this transition could bring both advantages and challenges.
4. New Pricing for Sales & Service Hub: The updated pricing structure introduces a more flexible approach for users requiring specific sales or service functionalities. 
   
   

Impact on Users: SMEs vs. Enterprise Clients

• SMEs: The removal of seat minimums makes it easier for SMEs to access HubSpot’s powerful enterprise features, like custom objects, at small-business pricing.
• Enterprise Clients: With the introduction of Core Seats, enterprise clients must carefully assess the number of team members requiring full editing capabilities. This change could increase overall costs with large marketing teams. On the other hand, enterprises that push limits on professional plans can unlock enterprise features with one Sales Hub or Service Hub Enterprise seat.

Who Would This Impact the Most?

This pricing change will most significantly impact businesses with large marketing or tech teams that frequently create or edit content in HubSpot. Businesses that intermittently require increased capacity, such as during marketing campaigns or product launches, will find the new pricing model's flexibility particularly advantageous.

Transition to Enterprise Level: After the pricing change, businesses considering upgrading to a Marketing Hub Enterprise plan will need to carefully consider the number of Core Seats needed. The new model's flexibility and removing seat minimums on Sales and Service Hubs provide enterprise-level benefits at a lower cost, reducing the need to commit to higher-priced plans unless necessary.

Case Studies: Adapting to the New Pricing Model

Client A: Optimising Seat Usage for Cost Savings

Client A has a large marketing team that serves multiple departments within the organisation. Consequently, many users come and go 

Their team comprises 60 marketers, 3 developers, 1 super admin, 3 C-level execs, 7 HubSpot Solutions Partner users, and 5 agency partners (Google ads, Facebook ads, and content agency partners).

Client A initially had many Core Seats, many of which were underutilised. Reviewing user roles and access needs, they identified opportunities to switch some users to View-Only Seats, reducing unnecessary costs and better aligning seat allocation with actual usage. This resulted in significant monthly savings

Renewal date: September 25th 2024 (1yr)

Before Pricing Changes

After Pricing Changes (No Optimisation)

In the case of Client A, the transition to the new pricing model revealed significant cost-saving opportunities. Originally, the client had many of what are now considered Core Seats, most of which were not fully utilised. By thoroughly reviewing user roles and access needs, they identified users who could switch to View-Only Seats without compromising productivity. This optimisation reduced unnecessary costs and better-aligned seat allocation with actual usage, leading to substantial monthly savings.

After Pricing Changes (With Optimisation)

Client A Optimised Renewal: After careful consideration, they realised they could use 32 Core and 37 View-Only Seats.

Saving through better use management: $2,775/month or $33,300 a year.

Renewal Date: September 25th 2024

Strategies for Managing Seat Allocation and Permissions

These strategies enabled Client A to maximise their investment in HubSpot by ensuring that each seat was appropriately utilised according to business needs.

• Data Governance Policies & Regular Audits: Periodic reviews of user access and roles helped identify and reassign seats as needed, ensuring optimal usage.
• Role-Based Permissions: Establishing clear permission sets based on job roles streamlined access management and prevented over-allocation of Core Seats.
• Flexible Seat Management: Utilising the flexibility of switching users between Core and View-Only Seats as they needed edit access using roles helped maintain cost efficiency without sacrificing access to necessary features. Think of it as “musical chairs” based on the editing requirement.

Client B: Unlocking Cost-Effective Enterprise Features

Client B is an ads agency on what was the CRM Pro Suite (now CRM Platform Pro) with a small group of 10 marketers, 2 designers, 2 developers, 2 sales reps, 2 owners, and a project manager who sends NPS surveys with 2K contacts.

They wanted custom objects but didn’t go for an Enterprise plan at the time due to the cost and waste of 8 additional Service or Sales Enterprise seats.

Client B initially had a mix of Core Seats and additional features that were not fully utilised. Upon reassessing their needs with the new pricing model, they shifted many team members to View-Only Seats, reducing their monthly costs and aligning their subscriptions with actual operational requirements. They further reduced their costs by negotiating favourable terms by opting for a longer contract duration and upfront payments.

Renewal date: November 2nd, 2024 (1yr)

Before Pricing Changes

After Pricing Changes (No Optimisation)

Client B initially underutilised the features they were paying for. With the introduction of the new pricing model, they reassessed their needs and found that many of their team members could function effectively with View-Only Seats, while only a few required full editing capabilities provided by Core Seats. This adjustment aligned their seat allocation more closely with actual use and significantly reduced their monthly costs.

After Pricing Changes (With Optimisation)

Client B Optimised Renewal: After careful consideration, they have realised they can use 6 Core Seats, have an additional 8 View-Only Seats and don’t need an Ops Pro right now.

Saving through better use management: $1,350/month or $15,600 a year.

Renewal Date: November 2nd 2024 (1 yr)

Benefits Achieved:

• Cost Reduction: Aligning seat allocation more closely with actual use significantly reduced monthly costs.
• Negotiated Savings: Secured discounts and favourable contract terms by negotiating early.

Key Renewal Strategies for 2024

• Assess Team Needs and User Roles: Regularly review your team members' specific needs and roles to optimise HubSpot seat allocation. This ensures you avoid overpaying for unnecessary capabilities and use resources efficiently.
• Efficient Seat Management: Implement strategies like regular audits of user access and roles to ensure seats are appropriately assigned. Utilise the flexibility of switching users between Core and View-Only Seats as roles and needs evolve.

• Negotiate Early Renewals and Long-Term Contracts: Engage with HubSpot or your solutions partner early in the renewal process to explore potential discounts or incentives for committing to longer contract terms. This strategy can provide cost predictability and lock in favourable pricing.

Comparison with Previous Pricing

Frequently Asked Questions (FAQs)

1. What changes have been made to the free tools?
   • Free tools now include a limit of 5 Core Seats with unlimited View-Only Seats.
2. What are the updates to the Starter tools?
   • The new pricing offers a single price of $15 per user, providing access to all five Hubs (Marketing, Sales, Service, CMS, and Ops Hub), compared to the previous pricing of $45 for two users.
3. Should existing customers be concerned?
   • Existing customers won’t face immediate changes, but they should prepare for the new pricing model to take effect at their next contract renewal.
4. Can Pro and Enterprise seats be mixed within the same Hub?
   • No, all seats within a Hub must be of the same tier. However, different Hubs within the same account can have different tiers.
5. Will the cost of marketing contacts change?
   • There’s no current indication that the cost for marketing contacts will change with the new pricing model.
6. Can we negotiate HubSpot service costs?
   • While HubSpot has set pricing, businesses may be able to negotiate custom solutions based on their specific needs by engaging directly with HubSpot representatives. 

Navigating HubSpot’s New Pricing Structure

HubSpot’s updated pricing model revolutionises how businesses interact with their smart CRM platform. By introducing seat-based pricing, eliminating seat minimums, and offering Core and View-Only Seats, HubSpot provides tailored solutions for all business sizes.

To maximise your HubSpot investment, it’s crucial to regularly assess team needs, allocate seats efficiently, and negotiate early for cost benefits. By staying informed and proactive, businesses can reduce unnecessary expenses and maintain a cost-effective, functional setup tailored to their specific needs.

Don't miss out on making the most of your HubSpot subscription. Schedule a consultation with our HubSpot Growth Specialist to navigate the new changes and enhance your platform usage.