Did you know 40% of Salesforce customers overspend because of poorly chosen or underutilized licenses? Salesforce licenses seem simple at first. Until you realize how many types and pricing models there actually are.
Choosing the wrong ones means overpaying or missing out on features. But figuring it all out on your own can be overwhelming.
Our guide will help you direct your way through Salesforce licenses and understand:
A Salesforce license is a contractual agreement that gives an individual user access to Salesforce products and features. It’s like a ticket or pass that defines what functionality or permissions each user gets in the Salesforce platform.
Every user in an organization using Salesforce needs to have their license, which controls what they can see, modify, and interact with in your Salesforce org.
Salesforce licenses are purchased for each user who needs access when your company subscribes to the platform. Each license type provides specific baseline features and capabilities.
Depending on the user’s business function, whether it’s sales, partner management, or custom-app development, they will need different license types.
Salesforce typically distinguishes licenses into two main categories: internal and external licenses.
Internal licenses are intended for internal employees.
The Salesforce internal license includes a variety of options beyond core user and
feature licenses:
License costs vary based on type and edition: monthly per-user pricing starts at $25 and extends up to $500 for the most comprehensive plans. Understanding these differences helps develop a cost-effective licensing strategy.
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Experience Cloud (formerly Communities) uses community licenses like standard Salesforce internal licenses.
It also offers several license types for external users who aren’t your organization’s employees.
External users with a member-based license can access a community as often as they need. However, they just won’t have access to the internal Salesforce org.
Customer Community licenses work best for self-service scenarios where external users need limited access:
Customer Community Plus licenses support more collaborative business processes:
Partner Community licenses help manage business partner relationships:
Channel Account licenses give access to up to 40 partner users per partner account. It is an economical solution for organizations with multiple contact points at each partner company.
External App License: External users can use fully customized apps created for customers to engage and interact with your brand without extensive CRM data exposure.
The Salesforce External Identity License is for external users like customers, partners, or stakeholders. It allows them to self-register, login, manage their own profiles, and access connected sites and apps without giving them access to complete CRM features.
Experience Cloud licenses use different pricing models from internal user licenses. Depending on your usage patterns, you can buy them based on individual users or login frequency.
Individual licenses are more economical if users log in more than four times monthly.
Also, Salesforce Experience Cloud offers two types of site access licenses:
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Another vital consideration in Salesforce licensing is login-based vs. seat-based licenses.
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The Salesforce Developer License and the Salesforce Platform License serve different purposes and have different capabilities, mainly regarding access, use cases, and limitations.
| License Type | Developer License | Platform License |
|---|---|---|
Here’s a breakdown:
Salesforce Developer licenses are available for Development Orgs. They are primarily used by individual developers or teams who want to build and test apps or learn Salesforce without paying for a license.
Key features:
Salesforce Platform Licenses are used for custom app development in a production environment. They are a good option for organizations wanting to give non-sales/non-service users access to Salesforce for internal apps or operations dashboards.
Key features:
Platform licenses come in two varieties.
Both options include automation tools like Flow and Apex. Developers can create sophisticated solutions without needing full CRM licenses.
Platform licenses let you use Salesforce’s infrastructure to build custom applications without full CRM features.
| Feature | Platform Starter | Platform Plus |
|---|---|---|
Both versions come with core features like:
Platform Plus gives you 11 times more custom object capacity, making it perfect for organizations with complex data structures.
Also, Salesforce offers a Platform Login & Dev Credits option at $1,000 per 10,000 credits and 200 Logins.
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Organizations often find it difficult to separate Salesforce editions from license types, a difference that shapes subscription costs.
These two concepts stand apart: Salesforce Editions represent the complete package of functionality your organization buys. Editions set the baseline features available throughout your Salesforce implementation of Sales and Service Clouds.
*Salesforce Foundations is a free set of features available to all Salesforce Sales Cloud and Service Cloud customers on Enterprise and Unlimited editions. It includes selected features from Data Cloud, Marketing, Commerce, Service, Sales, and Agentforce.
Salesforce user license types work within these editions and control what specific users can access. While editions apply to the whole organization, licenses go to individual users based on job needs.
Each license type has specific permission sets, profiles, and access levels that you can customize further. This approach lets organizations pay only for what each user needs.
Salesforce uses two main license categories that blend to create a custom access model:
Salesforce user licenses set the basic access level for each user.
Every Salesforce user needs one user license. These licenses provide core CRM functions and access to standard objects like:
Popular Salesforce license types include:
– Experience Cloud login-based licenses for Customer Community are $2 per login per month, and for Partner Community, they are $10 per login per month.
– Data storage for an extra 500 MB blocks is $125 per month. API usage is limited per license type, and exceeding those limits may incur extra costs or require license upgrades.
– Advanced AI solutions like Agentforce AI agents are $2 per conversation.
| License Type | Who It's Best For | Pricing Details |
|---|---|---|
| Sales, Marketing, or Service teams needing full CRM functionality (Leads, Opportunities, Cases, Reports, Dashboards). |
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| Team members leveraging custom apps; no need for standard CRM features like leads or opportunities. |
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| Users requiring authentication or single sign-on (SSO), without CRM functionality; appropriate for external or identity-centric users. |
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| System integrations (API only), no user-interface access. Best for integrations between Salesforce and external systems. |
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| Occasional-use external users (Experience Cloud); or resource-based usage (API, Data, AI) priced per usage. |
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The core Salesforce user license is assigned to each user, setting the baseline functionality.
The Salesforce user license comes with permission sets allowing extra functional access beyond the baseline feature set and permission set licenses that provide access to additional features not covered by the primary user license.
Salesforce Feature licenses work as add-ons that give access to specific features beyond the standard user licenses.
Users can have several feature licenses at once. For example:
The concepts connect in this order:
This layered structure helps optimize costs by matching access to each user’s needs instead of giving everyone full-featured licenses.
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Innovative Technologies Solutions is a small technology consulting and service company with 25 employees.
They use Salesforce as their core CRM system for managing customer interactions, running internal operations, and engaging with external communities.
Let’s examine the potential Salesforce license cost for Innovative Technologies Solutions, calculating the average costs for various internal and external user licenses based on specific user roles and needs.
Company User Profiles and Needs:
Internal (Employee) users (20 licenses):
External users approximately (monthly usage-based):
Salesforce Licensing Calculation:
Internal Licenses:
Monthly Total Internal License Cost: $970/month
External Licenses (Usage-Based):
Monthly Total External License Cost: $2,370
As a result, the annual total Salesforce license cost will be $28,440
| Employee Role/User Type | License Type | Quantity | Unit Price | Monthly Cost (USD) |
|---|---|---|---|---|
Additional Costs (Optional):
This is a realistic, simplified pricing scenario for a small business. It gives you an idea of what to expect for Salesforce licensing costs.
Actual costs will vary based on edition, negotiation, additional requirements, contract, and discounts/promotions.
Let us prepare a tailored CRM implementation and customization offer that precisely meets your needs without unnecessary services or licenses.
Salesforce knows how unique and powerful nonprofits are. To support their missions, Salesforce offers specialized licensing options for nonprofits, primarily through its Nonprofit Cloud platform.
This range of licenses helps nonprofits by streamlining donor relationship management, fundraising, grant tracking, program management, reporting and more.
Let’s dive into the main licenses, offerings and programs available to nonprofit organizations.
| License Type | Monthly Cost (USD) | Key Features | Ideal For |
|---|---|---|---|
| Nonprofit Data Model - Nonprofit Toolkit and Accounting Subledger - Nonprofit Copilot Actions | Mid-sized nonprofits seeking a comprehensive CRM solution. | ||
| All Enterprise features - Additional storage and automation - Premier Success Plan - Full Sandbox - 24/7 Toll-free Support - Expert Coaching | Larger nonprofits requiring advanced support and scalability. | ||
| All Unlimited features - Einstein for Sales - Data Cloud and Experience Cloud - Salesforce Maps, Scheduler, Enablement - Slack Enterprise Grid - Slack Sales Elevate | Organizations aiming to enhance sales processes with AI and collaboration tools. | ||
| All Unlimited features - Einstein for Service - Data Cloud and Experience Cloud - Service Cloud Voice - Digital Engagement - Einstein Conversation Insights - Salesforce Scheduler - Slack Enterprise Grid | Nonprofits focusing on service delivery and support with AI capabilities. | ||
| 10 free licenses for eligible nonprofits - Access to Sales & Service Cloud Enterprise Edition - Discounts on additional licenses and products | Eligible nonprofits seeking to start with Salesforce at minimal cost. |
Salesforce is committed to social impact and supports nonprofit growth through its Power of Us Program.
This program is designed to help nonprofits get started with Salesforce for free, with discounts on subsequent expansions.
Through the Power of Us Program, eligible nonprofit organizations get:
In essence, Salesforce removes barriers to entry by allowing nonprofits to adopt robust technology platforms at zero cost, so they can focus on what matters most – their mission-driven work.
Salesforce Nonprofit Cloud has several offerings, each tailored to meet different organizational needs, from small and growing nonprofits to mature and established institutions.
It’s the best solution for midsize nonprofits looking for an affordable yet robust CRM solution for fundraising, donors, activities, financial reporting, relationship tracking, and program management.
Key Features:
This edition is designed for larger or fast-growing nonprofits that need customization flexibility, more storage, automation, priority support, and testing capabilities to scale.
Key Features:
This option is for nonprofit teams seeking advanced insights and predictions to drive fundraising success, high donor engagement, and relationship building through data analytics and AI-powered CRM.
Key Features:
It is for Nonprofit organizations prioritizing exceptional service interactions such as donor support programs, volunteer helplines, member services or custom outreach services in an optimized data-enriched environment.
Key Features:
Grant processes are different from fundraising, so Salesforce has created special nonprofit license editions specifically for comprehensive grantmaking and management.
Through these targeted licenses, nonprofits involved in grant applications, management, and reporting can access optimized Salesforce features.
It’s the best option for nonprofits to manage external grant applications, allocate budget resources, evaluate grants, and facilitate personalized grantee experiences through branded portals.
Key Features:
It’s designed for organizations with large, complex grantmaking operations and requirements, needing maximum storage, extensive automation, custom workflows, full support, and integration throughout the grantmaking lifecycle.
Key Features:
Historically, the Nonprofit Success Pack (NPSP) was Salesforce’s original CRM customization model that offered free and open-source services to nonprofits. It customized the Salesforce platform for nonprofit needs like donor relationship management, grants management and fundraising.
Today, Salesforce is investing more in the Nonprofit Cloud platform designed for nonprofit organizations’ complex, modern needs. While NPSP is still available, supported, and widely used, organizations should note that most innovations, AI features, developments, and features are being released under the Nonprofit Cloud umbrella.
Marketing Cloud takes a different approach to licensing compared to other Salesforce products:
Marketing Cloud splits into bundles with different editions and pricing:
Your pricing structure can change based on which modules you need and your organization’s size.
Account Engagement (formerly Pardot) uses a similar per-org billing approach.
Multiple users can access the platform with one license. The pricing looks like this:
Pardot editions have different contact limits (usually 10,000 contacts; Premium gets 75,000). You can buy more contacts in blocks of 10,000.
Each Account Engagement tier adds better features. Advanced and Premium editions give you custom objects and dedicated IP addresses. Growth has simple features but limits forms, landing pages, and automation rules.
The proper license type depends on your business needs, user count, and budget. Good license choices can save money while giving you all the necessary features.
Understanding Salesforce license types and their limitations is vital to managing costs and staying compliant. Each license type has specific restrictions that shape your implementation strategy.
Platform licenses have strict rules about custom object access. Platform Starter (formerly Lightning Platform) lets users access only 10 custom objects per user.
Platform Plus (formerly Lightning Platform Plus) is different as it allows access to 110 custom objects per user. It gives teams much more room to build complex applications.
You won’t hit a technical wall when assigning more custom objects through permission sets. However, going beyond your contractual custom object limits violates your agreement with Salesforce, and they might bill you for past usage.
Salesforce strictly forbids using custom objects to recreate standard features to avoid paying for them. Creating an Opportunities-like system with custom objects breaks Salesforce’s terms and could trigger penalties.
The Salesforce Integration User license, introduced in March 2023, serves system-to-system integrations. These licenses only work with APIs, which means users can’t directly access the Salesforce interface.
Organizations with Performance, Enterprise, and Unlimited editions get five free Integration User licenses.
Developer organizations receive one. These specialized licenses need careful permission management:
Einstein features vary across Salesforce editions.
Enterprise edition and above include some features by default, like Einstein Search and Opportunity Scoring. The Unlimited edition includes most Einstein features at no extra cost.
Enterprise and Performance editions require additional investment beyond the base license cost for many Einstein capabilities. Organizations should review the Einstein features they need before picking their Salesforce edition.
Einstein’s licensing model differs from standard user licenses. Its availability usually links to specific Salesforce products and editions rather than standalone options.
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A good Salesforce license audit can help you save up costs, according to Gartner research – 30%. You need regular audits to see how your organization uses licenses and cut unnecessary expenses.
Let’s look at practical ways to check your current Salesforce license setup.
The Company Information section is where you start any Salesforce license audit.
Here’s how to find this important area:
You’ll find detailed information about your license inventory, including:
This view shows your license usage right away without running complex reports.
The Feature License section shows special license types, such as Marketing User, Service Cloud User, and Flow User, details that are not found in standard reports.
Watch out for Integration User licenses. These work great for API-only access with third-party tools like Marketo or HubSpot when you don’t need interface logins.
Salesforce gives you several ways to get into license allocation:
Standard User Reports: You can create custom reports to see user login patterns and license assignments.
Here’s how to build a report that tracks inactive users:
Permission Set License Assignment Reports:
To see which licenses belong to specific users:
You can export these reports as CSV or Excel files to work offline or share with others. When you pick the “Formatted Report” option, the export keeps your formatting.
Only 47% of Salesforce licenses see active use, and here’s how to spot these underused licenses:
Set clear metrics to spot underuse:
Look at login patterns by department and function to spot usage trends. It shows if specific teams consistently use the system less.
Get reasons for license assignments to ensure proper allocation. Users should explain why they need specific license types before getting access.
Watch seasonal patterns to find chances to reassign licenses. Some roles need full licenses only at certain times, letting you optimize throughout the year.
You can reassign inactive licenses to new users or switch them to cheaper types.
Consider temporarily deactivating licenses for users who haven’t logged in for 45-60 days.
Make license audits part of your regular Salesforce governance. Yes, it is best to review things every quarter to keep license distribution optimal as your organization grows.
Smart Salesforce license optimization can cut subscription costs by up to 40%. Companies waste much money through poor license allocation. You should try these cost-cutting methods before buying new licenses.
License audits show companies keep paying for inactive licenses they don’t need.
Here’s how to spot these chances:
You can quickly turn off unused licenses without losing user data – users can be reactivated whenever needed. Start with teams that have seasonal usage, where licenses sit unused during quiet periods.
Users who primarily work with custom apps instead of core CRM can use Platform licenses to save money:
These licenses are good candidates for:
Remember that switching from full Salesforce to Platform licenses removes all permission sets. You’ll need to set up new permissions after the switch.
Salesforce Identity licenses give single sign-on access without full CRM features.
These work best for:
The Salesforce Identity license comes with core features like Single Sign-On, Multi-Factor Authentication, App Launcher, and Connected Apps. The Identity Plus version adds better security and integration options.
With Account Engagement, your company gets 100 identity licenses. If you already use these tools, this is a quick way to save money.
Want the right licensing structure for your budget? Hire Ascendix, a certified Salesforce consultant, to optimize your Salesforce license cost and usage.
With 20+ years of experience, we know the best practices for improving Salesforce license management.
We’ll ensure your organization gets the most out of your Salesforce investment by combining cost savings with efficiency and productivity gains.
Besides that, we will help you:
“ Our experience with Ascendix has been excellent. The team is very responsive, seeks to understand the problems that the business is trying to solve, provides clear solutions, and delivers those solutions effectively and efficiently. The Ascendix team collectively, ensures that we have risks managed and works effectively with our other platform teams to ensure that our integrations are working correctly and are adequately tested. ”
Are you confused by Salesforce license types and editions, have questions about real Salesforce subscription costs, or need help understanding Salesforce cost structure? Get your free consultation today!
Salesforce license is a contract that defines the features and services available to a user or an organization within the Salesforce environment. Licenses are required because they set the baseline access and functionality for users in Salesforce and ensure users comply with Salesforce’s terms of service and avoid legal and financial issues.
Across all categories, there are over 100 different Salesforce license types when you include standard user licenses, feature, permission set, usage-based, and specialty licenses.
Internal Salesforce licenses are for your employees and give them full access to the Salesforce platform including CRM functionality and internal data. External licenses are for users outside of your organization, such as customers or partners and give them limited access to specific data and features through Experience Cloud sites for their interactions.
Salesforce Community licenses, now known as Experience Cloud licenses, are for external users – customers, partners or vendors, giving them limited access to specific Salesforce data and features through branded portals.
Standard CRM licenses (e.g. Sales or Service Cloud) are for internal employees and give them full access to all Salesforce CRM features including leads, opportunities, reports and dashboards. Community licenses are generally more cost effective and for specific external collaboration scenarios, standard CRM licenses are for internal business processes.
Anzhelika is a seasoned B2B content marketing strategist with extensive experience in elevating corporate profiles through compelling content. At Ascendix, she offers a wealth of knowledge in Salesforce consulting, providing valuable tips, tricks, and comprehensive guides. Additionally, Anzhelika stays at the forefront of the industry, delivering expert analysis on the latest Salesforce tools and emerging technology trends.
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