August 3, 2023
Facilitating digital collaboration and fostering a cohesive work environment is the backbone of a company intranet, offering a centralized platform that not only streamlines operations but also revolutionizes how businesses communicate with their employees. When it comes to implementing a modern intranet, understanding the associated costs can be a perplexing task. The cost for your intranet is typically comprised of the software expenses, implementation expenses, and migration expenses (if applicable).
In this blog post, we dig into the software pricing model for most intranets. In particular, we will delve into the details of the user price model, which serves as the standard pricing approach for intranets. By exploring this model, we will provide valuable insights into how user counts influence pricing and help you gain a clearer understanding of the cost considerations associated with implementing a modern intranet for your organization.
The user price model is the typical pricing structure for community-based modern intranets specializing in employee or internal company use. It’s based on the number of users or employees who will be utilizing the intranet platform. Under this model, the software provider charges a flat rate per employee who accesses the intranet. This pricing model works well because these communities have fairly consistent use as employees work and access their company intranet daily.
Typically, the number of employees (also known as "seats") is built into a contract. A 3- year Saas (cloud) contract is the norm for the industry.
A 1-year contract is frequently available, but typically at a premium price of 20-30% higher due to the shorter contract commitment than the industry standard of 3-years.
Seats are usually priced in increments of 50-100, and there are minimum seat requirements also. The minimums are typically a few hundred because the software vendor's profitability margins are very thin for these small clients. A small client will often still have similar sales investment and support as a more significant, profitable client.
Your contract will also allow you to purchase additional seats to address the potential future growth of your employees.
The software vendors have a confidential tiering system that groups seat counts into ranges of a few thousand seats. The cost per seat gets lower as the seat tier increases.
Our partnership agreements do not allow us to go into specific details. Still, you generally pay between $2 - $10 per user monthly. To receive the lowest cost range of about $2-$4 per user per month, you need a total employee base of 5,000 to as high as 50,000 to get the best rates.
For lower employee counts in the hundreds or even a couple of thousand, you're looking at between $4-$10 per user, per month, depending on the actual count and platform.
We specialize in community platforms designed for large and complex companies on a global scale. However, these software vendors also cater to the needs of small and medium-sized companies who are seeking top-tier platforms.
It's important to note that there are many software options available in the market that cater to smaller companies looking for quick setup, basic functionality, and low-cost solutions without long-term commitments. While these companies fall outside the scope of our expertise and services, they may be suitable for those specific requirements.
If you're ready to take the next step and create a robust intranet tailored to your organization, we are here to help. With our expertise in community, we can guide you through the process, from understanding the costs to implementing a solution that fits your requirements.
Contact us today to explore how Social Edge Consulting can empower your organization with a modern intranet that drives productivity, boosts collaboration, and fosters a cohesive work environment. Let's work together to make your intranet vision a reality!