Choosing Business Software and a CRM: Free Plans vs Paid

For a small business or sole trader, the first piece of serious software is often a CRM (customer relationship management) tool, closely followed by invoicing, scheduling or project management. Almost all of them advertise a free plan. Some free plans are genuinely enough for years; others are designed to be outgrown in weeks. Knowing how the pricing works helps you pick the right one and avoid a painful switch later.

Decide what you actually need first

Before comparing plans, write down the jobs the software has to do.

1. The must-haves. For a CRM, that might be storing contacts, tracking deals and logging emails.
2. The number of people who need to log in, now and in a year's time.
3. The tools it must connect to, such as your email, calendar, accounting software or website forms.
4. Any rules you must follow, for example on where customer data is stored or who can see it.

A short list stops you paying for features you'll never open, and makes it obvious when a free plan won't do.

Read the limits on the free plan

Free plans are usually limited in one or more of these ways:

• Users: often one or a small handful.
• Records or storage: a cap on contacts, deals, files or projects.
• Features: automation, reporting, custom fields or integrations held back for paid tiers.
• Usage: limits on emails sent, workflows run or API calls.
• Branding: the provider's logo on your forms, emails or invoices.
• Support: help articles only, with no direct support.

Find the plan comparison table, not just the headline, and check the limit you're most likely to hit first.

Understand per-user pricing

Most business software charges per user, per month. The headline price can look small, but it multiplies.

Annual vs monthly billing

Annual billing usually comes with a discount compared with paying monthly, but it locks you in.

• Pay monthly while you're testing. Switch to annual only once the tool is part of your daily routine.
• Check what happens if you remove users mid-year. Many annual plans don't refund unused seats.
• Note the renewal date and whether the price is fixed or can change at renewal.

Make the most of the trial

Many paid plans offer a free trial. To get real value from it:

• Test with real work, not sample data. Import a slice of your actual contacts or projects.
• Try the features that justify paying, such as automations or reports, rather than the ones the free plan already has.
• Check whether a card is required. If it is, the trial may turn into a paid subscription automatically. Put the end date in your calendar.
• Contact support during the trial to see how quickly and helpfully they respond.

Check you can leave with your data

This is the step most people skip, and the one that hurts most later.

• Look for export options in common formats such as CSV, for every type of record you store, including notes and attachments.
• Check whether export is available on the free plan, or only on paid tiers.
• Find out what happens to your data if you cancel or downgrade, and how long it's kept before deletion.
• Read the privacy and data processing terms if you hold customer data, so you know where it's stored and who can access it.

Cancelling and downgrading

Before you sign up, find the cancellation process in the help pages. Look for:

• Self-service cancellation in the account settings, rather than having to email or call.
• Notice periods on annual or contract plans.
• What a downgrade removes, such as automations, users or history.

If a provider takes money after you cancel, our guide to refunds and chargebacks explains what you can do. For one-off digital purchases such as templates or courses, see what to check before buying an online course.