(This column originally appeared in Forbes)
So you want to get a “free” CRM application and you want to know what’s best? I get asked this question a lot. And my answer: none. Don’t get a “free” CRM application.
I don’t like free CRM software applications and below are my reasons why.
(Caveat: I make my living selling and providing services for a few paid CRM applications, so please take that fact into consideration as you keep reading.)
They’re a security risk.
There are plenty of lists of “free” CRMs when you search the web. Many of these lists simply include well-known subscription CRM platforms (i.e. Zoho, VTiger, Pipedrive) that are offering watered down versions of their paid products. If you search further you’ll find plenty of other free offerings from companies like Snov, Flowlu, EspoCRM, Raynet and eWay. Be careful. Snov and Espo are from Ukraine. Flowlu is Russian. Raynet and eQayj are Czech.
This is not me being xenophobic — OK, maybe it is a little — but I would be very concerned about my company’s data and in a “free” system that I’m relying on to run my business when that data is under the auspices of a software company from overseas. This is not to say that all overseas companies are not secure. Zoho and VTiger are Indian based. Pipedrive is based in Estonia. These companies are well-established and I’m sure have good security. But for other “free” CRMS, how do you know who has access to your data and what it’s being used for? How do you know how secure your data is to a breach? What recourse do you have if something happens? Well known apps like CamScanner, CCleaner and VidMate — all foreign made — have had stories of malware and trojans that stole data. There are plenty of unreported stories, I’m sure. Be wary.
Free CRM applications generally have few support options.
I’ve found that the vast majority of the companies that make free CRM software are very small. Free software doesn’t come with lots of support. They don’t have much of a community. They don’t do conferences. They offer zero training. They have no partners, integrators or consultants. Maybe you can find someone on Reddit or elsewhere who can help with questions, but good luck with that. When you use a free software platform you’re pretty much on your own. You get what you pay for.
There’s a significant lack of features.
Free software applications — even the free offers from mainstream providers like Zoho, Insightly and Nimble — lack many features. Take Zoho CRM for example (which my company sells). Zoho’s free version only allows up to three users, has significantly less storage space, limited reporting and analytics and doesn’t offer any workflows, advanced customizations and integration features. It’s pretty much WYSIWYG. You’re almost better off with a spreadsheet. Free versions are never good enough. And that’s by design. Their makers want you to upgrade to paid services.
These applications can disappear…with your data.
Free software platforms are oftentimes made by very small organizations that are typically financially under-resourced. When a company can’t afford to pay its bills it goes away, or discontinues products. Which is what happened with previous CRM offerings like Highrise, Inigral and Relenta, and those are the ones we know about. When a company does not have enough financial resources it can’t keep up upgrades, add new technologies and bolster security. What happens if you wake up one morning and the URL to your CRM application — where all your data is stored — suddenly doesn’t exist anymore? You have no recourse. You have no options.
There’s no scaling.
As your business grows you’ll need more users, more functions and a larger database. Most free CRM software applications will disappoint. They simply do not scale. If your company is in a growth mindset your best bet for free software is to take advantage of one offered by a mainstream software company so, as you grow, you can upgrade to the paid versions and you won’t lose your data in the process. Otherwise you’re stuck and may be forced to pay a lot more to migrate from one system to a new one.
There’s no value add.
Let’s say you’re interested in buying a business. Now suppose that business owner says to you that all of their customers, prospects and business community are stored in their CRM systems and you get excited because that data is very valuable. But then they tell you that it’s in some obscure, free CRM software platform instead of a well-known brand. That’s going to present a problem. You’ll likely be unfamiliar with that platform and anxious to migrate it to something else — maybe your own. But you’ll have challenges doing that if the platform doesn’t provide the right tools and support which — let’s face it — most free platforms don’t. That’s going to reflect in the price you’re willing to pay for that data. If you’re on the other end of that transaction be prepared receive less money.
They potentially harm your recruiting.
Let’s say you want to hire an experienced sales person or sales manager and they ask you what CRM you’re using. Most likely they’re used to using — and hearing about — reputable platforms. What’s their reaction when they hear you’re using a “free” software? That’s what you think of your sales team? You won’t even pay for their core tool to use? That’s not a great message to send to potential (and current) talent, is it?
Finally: free CRM software is a marketing scheme in disguise.
Who does anything for free? There’s always a catch. A limitation. A lack of features. A reason to force you into upgrading to a paid version. Or buying some other software. Or inundating you with an avalanche of advertising. If you think you’re getting a deal by using a “free” CRM application then you’re probably the guy who believes that casino in Vegas wants you to win money from them too.
My advice: you get what you pay for. Good, mainstream CRM applications really aren’t that expensive, usually around $20-$30 per month per user for a decent version. Is that so much to ask for a system that can generate revenues and build value in your business? I think spending a few hundred bucks a year isn’t a big price to pay considering what you’re getting — and keeping — with a more reliable and secure choice.
