The main Salesforce license types include:
- Salesforce User Licenses: Determine access to baseline features.
- Salesforce Feature Licenses: Provide additional features not included in the user license.
- Salesforce Platform Licenses: For Enterprise and Unlimited editions, include Accounts, Contacts, Reports, and automation tools.
- Salesforce Identity Licenses: Enable Salesforce single sign-on access.
- Salesforce Einstein Licenses: Integrate AI technology into Salesforce products.
- Salesforce Experience Cloud Licenses: Offer external user access to Salesforce org.
- Marketing Cloud Licenses: Tailored for various marketing needs.
- Pardot Licenses (Account Engagement): Focus on B2B marketing automation.
Introduction to Salesforce Licensing
Salesforce licensing can be likened to a lease agreement. In this scenario, Salesforce is the property manager, and the customer organization is the tenant.
A Salesforce license, or a license definition, is a metadata description outlining the Salesforce features and services accessible to your organization.
The licensing agreement is responsible for defining the functionality of the customer organization.
It encompasses specific details such as:
- Start and end dates
- The number of users who can access Salesforce
- The number of custom objects the organization can create
Activating your licenses and enabling functionality in your organization is known as provisioning.
This process occurs when:
- You make an initial purchase to set up a Salesforce organization.
- Purchase an upgrade or add-on.
- A Salesforce patch release includes changes to a license definition
Salesforce License Types
Salesforce offers a variety of license types that provide different levels of access and functionality.
The license type determines the Salesforce products and features a user can access their permissions, and the number of custom objects they can create.
Here is a comprehensive list of Salesforce license types:
- Salesforce User Licenses: Determine the baseline of the features a user can access. A user may only have one user license. Examples include Salesforce, Identity, and Platform Starter.
- Salesforce Feature Licenses Allow users to access an additional feature not included with their user license (base edition). Users can be assigned multiple feature licenses. Examples include Marketing, Flow, Knowledge, and Service Cloud Users.
- Salesforce Platform Licenses: Available on Enterprise and Unlimited editions. They include Accounts, Contacts, Reports, and automation tools like Process Builder, Flow, and Apex. They also have standard individual and mass emailing functionality. There are two types of platform licenses:
- Platform Starter (Formerly known as Lightning Platform) – access to 10 custom objects.
- Platform Plus (Formerly known as Lightning Platform Plus) – access to 110 custom objects.
- Salesforce Identity Licenses: These licenses enable users to log in via Salesforce single sign-on (SSO) without requiring a full CRM license.
- Salesforce Einstein Licenses: Salesforce Einstein is not a single product—it’s a technology layer woven into the Salesforce Lightning platform and various Salesforce Cloud products. There are different approaches to obtaining Einstein’s features.
- Salesforce Experience Cloud (Community) Licenses: Experience Cloud gives external users (customers or partners) a window into your Salesforce org. There are five license types: External App, Customer Community, Customer Community Plus, Partner Community, and Channel.
- Marketing Cloud Licenses: Marketing Cloud pricing can be challenging to understand, with many modules available (Studios and Builders) according to your organization’s needs. Each bundle is split into editions, following a per-org billing model.
- Pardot Licenses (Account Engagement): Pardot (Account Engagement) follows a ‘per org billing model,’ sometimes called a ‘bucket’ license. This means that by purchasing one Pardot license, you can give as many users access as your organization requires.
Salesforce User Licenses
Salesforce User Licenses are crucial in defining access levels within the Salesforce platform.
Here’s a breakdown:
- Salesforce License: Standard access to core CRM functionalities.
- Identity License: Allows user login via Salesforce Single Sign-On (SSO) without a full CRM license.
- Platform Starter License: Access to 10 custom objects, suitable for users needing limited CRM functionalities.
- Platform Plus License: Similar to Platform Starter but with access to 110 custom objects, catering to users requiring more extensive CRM tools.
Each license type caters to different user needs, from primary access to more specialized functionalities.
Salesforce Feature Licenses
Salesforce feature licenses are specialized licenses that grant users access to additional functionalities beyond the standard capabilities included in their base user licenses.
These feature licenses provide enhanced tools and capabilities tailored to specific roles and needs within an organization.
Additional Access
Feature licenses offer users access to advanced features and tools unavailable with a basic user license. This allows businesses to extend Salesforce functionality without upgrading the entire user license.
Customization
With feature licenses, organizations can customize user roles by assigning specific functionalities that align with their job responsibilities. This ensures that each user has the tools to perform their tasks efficiently.
Flexibility
Salesforce allows the assignment of multiple feature licenses to a single user. This flexibility means a user can have a combination of feature licenses that best suit their role, enhancing their productivity and capabilities within the platform.
Examples of Salesforce Feature Licenses
- Marketing User
- Description: Grants access to advanced marketing tools and capabilities.
- Benefits: Users can create, manage, and analyze marketing campaigns, leveraging tools like Email Studio, Social Studio, and Journey Builder.
- Flow User
- Description: Enables creating and managing automated workflows and processes within Salesforce.
- Benefits: Flow Builder allows users to design complex workflows, automate business processes, and ensure data consistency across the platform.
- Knowledge User
- Description: Provides the ability to manage and maintain the Salesforce Knowledge base.
- Benefits: Users can create, edit, and publish knowledge articles, helping to build a comprehensive and accessible repository of information for customers and employees.
- Service Cloud User
- Description: Offers access to Service Cloud features designed for customer support and service management.
- Benefits: Users can manage customer cases, provide support across multiple channels, and enhance customer service operations using tools like Service Console and Omni-Channel Routing.
Benefits to Businesses
- Enhanced Capabilities: Using feature licenses, businesses can significantly enhance the functionality available to their users, ensuring they have the right tools for their specific roles.
- Cost Efficiency: Instead of upgrading all users to higher-tier licenses, feature licenses allow targeted enhancements, providing a cost-effective way to scale capabilities.
- Improved Productivity: Tailoring access to advanced features boosts user productivity by equipping them with the precise tools they need for their tasks.
- Streamlined Operations: The right combination of feature licenses can help businesses streamline operations, improve workflow efficiency, and better support their strategic objectives.
Salesforce Platform Licenses
Salesforce Platform Licenses are designed to provide access to essential Salesforce functionalities, offering a range of tools and features that can be customized based on the organization’s needs.
Here’s a detailed overview:
Access Level
Platform licenses provide access to fundamental Salesforce functionalities, including:
- Accounts: Manage and track customer accounts.
- Contacts: Store and organize contact information.
- Reports: Generate reports to analyze data and performance.
Types of Platform Licenses
- Platform Starter
- Description: Designed for basic platform needs.
- Features: Access to up to 10 custom objects.
- Ideal For: Small businesses or teams with minimal customization requirements.
- Platform Plus
- Description: Catered to more extensive usage and customization.
- Features: Access to up to 110 custom objects.
- Ideal For: Larger organizations or teams require significant customization and extended functionality.
Additional Tools
Platform licenses include automation tools that help streamline business processes and improve efficiency:
- Process Builder: Automate business processes with simple point-and-click tools.
- Flow: Create complex, multi-step workflows to automate tasks.
- Apex: Use custom code to build robust and tailored applications.
Email Functionality
- Individual Emails: Send standard individual emails to contacts and accounts.
- Mass Emails: You can execute mass emailing campaigns directly from Salesforce, allowing for efficient communication with large groups of contacts.
- Access Level: Platform licenses offer access to fundamental Salesforce functionalities like Accounts, Contacts, and Reports.
- Types:
- Platform Starter: Access 10 custom objects designed for basic platform needs.
- Platform Plus: Access to 110 custom objects, catering to more extensive usage.
- Additional Tools: Automation tools like Process Builder, Flow, and Apex are included.
- Email Functionality: Standard individual and mass emailing features are included.
Salesforce Identity Licenses:
Salesforce Identity Licenses provide flexible access to applications using Single Sign-On (SSO) without requiring a full CRM license.
Here’s a detailed explanation:
Purpose
- Single Sign-On (SSO): This feature allows users to log in using Salesforce’s SSO capabilities, providing secure and convenient access to various Salesforce applications.
Usage
- Specific Application Access: This option is ideal for users who need access to specific Salesforce applications, such as Pardot, without needing the full suite of CRM functionalities.
Flexibility
- Limited Access Needs: Enables users to access essential applications and tools without a comprehensive Salesforce license, making it cost-effective and practical for many organizations.
Allocation
- Bundled Licenses: Often bundled with specific Salesforce products, providing a streamlined approach to user access management and ensuring users can log in securely and efficiently.
Salesforce Einstein Licenses
Salesforce Einstein Licenses integrate AI capabilities into various products, enhancing the platform with advanced tools and features.
AI Integration
- Artificial Intelligence: Infuses AI-driven insights and automation into Salesforce, helping businesses leverage data more effectively and make smarter decisions.
Features
- Einstein Search: Provides enhanced search capabilities using AI to deliver more relevant results.
- Opportunity Scoring: Uses AI to score sales opportunities based on the likelihood of closing, helping prioritize efforts.
- Other AI-driven tools include features like predictive analytics, automated recommendations, and more.
Editions
- It varies by Salesforce Edition. Some Einstein features are standard in certain Salesforce editions, while others may require additional investment.
- Cost Considerations: Depending on the edition and the organization’s specific needs, advanced AI features may incur an additional cost.
Bundled Licenses
- Sales Cloud Einstein: AI features tailored for sales teams, including opportunity insights and automated data entry.
- Service Cloud Einstein: Tools that enhance customer service operations with predictive analytics and AI-driven recommendations.
- Marketing Cloud Einstein: AI capabilities that improve marketing efforts, such as predictive scoring and personalized content recommendations.
Salesforce Experience Cloud (Community) Licenses
Salesforce Experience Cloud (formerly Community Cloud) provides businesses the tools to create highly customizable and branded online communities and portals for external users such as customers and partners.
Here’s a comprehensive look at the various aspects of Experience Cloud licenses:
External Access
Experience Cloud licenses enable external users to access your Salesforce org, allowing businesses to extend their reach and interaction beyond internal stakeholders.
- External Users: Customers, partners, and external entities can interact with the Salesforce environment through custom portals or communities.
- Access to Salesforce.org: These licenses allow external users to engage with data, participate in workflows, and utilize Salesforce functionalities relevant to their needs.
Types of Experience Cloud Licenses
Experience Cloud offers various types of licenses, each tailored to different use cases and levels of access:
- External App
- Description: Provides external users access to a specific application built on the Salesforce platform.
- Ideal For: Businesses needing to extend specific app functionalities to users outside their organization.
- Customer Community
- Description: Basic license for external users to access customer-facing communities.
- Features: Includes access to knowledge articles, case management, and basic community functions.
- Ideal For: Customer support portals and basic community engagement.
- Customer Community Plus
- Description: Enhanced customer community license with additional features.
- Features: Includes advanced sharing, reporting, and collaboration capabilities.
- Ideal For: Organizations requiring more interactive and data-driven community environments.
- Partner Community
- Description: Designed for external partners to access Salesforce functionalities.
- Features: Advanced CRM access, including lead and opportunity management, collaboration tools, and detailed analytics.
- Ideal For: Businesses looking to manage and collaborate with partners, distributors, or resellers.
- Channel
- Description: Specialized license for managing indirect sales channels.
- Features: Tools for channel sales management, including deal registration and channel marketing.
- Ideal For: Companies that rely on indirect sales channels must manage partner relationships and sales processes effectively.
Customization
Experience Cloud licenses are designed with a high degree of customization in mind, allowing businesses to create branded and flexible community portals:
- Heavy Branding: Tailor the look and feel of the community to match your corporate branding and design aesthetics.
- Design Flexibility: Salesforce’s robust design tools can be used to build and customize community portals that meet specific business needs and user experiences.
- Portals and Communities: Create distinct portals for different user groups (customers, partners, etc.), each with customized access levels and functionalities.
- External Access: External users (customers/partners) access to Salesforce.org.
- Types: External App, Customer Community, Customer Community Plus, Partner Community, and Channel licenses.
- Customization: Designed for portals or communities with heavy branding and design flexibility.
Marketing Cloud Licenses
Salesforce Marketing Cloud is designed to cater to advanced marketing needs, offering tools and modules that empower businesses to create, execute, and manage sophisticated marketing campaigns across various channels.
Here’s a detailed look at its functionality, editions, and bundles:
Functionality:
Marketing Cloud includes several modules, notably Studios and Builders, each serving distinct marketing functions:
- Email Studio: Manage email marketing campaigns, from creation to automation.
- Mobile Studio: Engage customers through SMS, push notifications, and group messaging.
- Social Studio: Listen, engage, and publish across social media platforms.
- Advertising Studio: Manage and optimize advertising campaigns across social networks.
- Web Studio: Build and manage web pages and microsites.
- Journey Builder: Create personalized customer journeys across various touchpoints.
- Content Builder: Centralized content management for all marketing materials.
- Audience Builder: Segment and target audiences effectively.
Editions:
Marketing Cloud offers four main editions, each with varying levels of functionality and pricing tailored to meet different organizational needs:
- Basic: Ideal for small businesses or those starting with marketing automation, offering core email marketing capabilities.
- Pro: Includes additional functionalities such as automation, advanced analytics, and more integrations.
- Corporate: Designed for mid-sized businesses, providing comprehensive tools for multi-channel campaigns and more extensive analytics.
- Enterprise: For large enterprises, offering full Marketing Cloud features, advanced customization, and extensive support options.
Bundles:
Salesforce offers various bundles to tailor the Marketing Cloud to specific marketing requirements. These bundles are designed to provide a mix of tools and functionalities that align with different marketing strategies and goals:
- Starter Bundles: For businesses new to marketing automation, offering essential tools to get started.
- Growth Bundles: Focused on scaling marketing efforts with additional channels and automation capabilities.
- Advanced Bundles: For businesses with sophisticated marketing needs, providing access to advanced analytics, AI-driven insights, and extensive customization options.
- Functionality: For advanced marketing needs, with modules like Studios and Builders.
- Editions: Basic, Pro, Corporate, and Enterprise, with pricing varying per organization.
- Bundles: Offers various bundles tailored to different marketing requirements.
Pardot Licenses (Account Engagement)
Pardot, Salesforce’s B2B marketing automation solution, is designed to enhance account engagement through targeted marketing efforts.
Here’s an in-depth look at its licensing model, usage, and additional options:
Billing Model:
Pardot operates on a ‘per org’ billing model, which means a single license allows multiple users within the same organization to access the platform. This model is cost-effective and simplifies license management for businesses.
Usage:
Pardot focuses on B2B marketing automation, offering tools and features that help businesses generate leads, nurture prospects, and drive sales. Key functionalities include:
- Lead Generation: Capture and track leads from various sources, including forms, landing pages, and social media.
- Lead Nurturing: Create automated marketing campaigns to nurture leads through personalized content and interactions.
- Lead Scoring and Grading: Prioritize leads based on their engagement level and fit with the business’s target profile.
- Email Marketing: Design, send, and analyze email campaigns tailored to B2B audiences.
- Sales Alignment: Integrate with Salesforce CRM to ensure seamless communication between marketing and sales teams.
Additional Licenses:
Pardot includes several additional licenses and options to enhance its capabilities and extend its reach:
- B2B Marketing Analytics: Advanced analytics tools specifically designed for B2B marketing, providing deep insights into campaign performance and ROI.
- Non-Salesforce User Options: This section provides licenses and access options for users not using Salesforce CRM, ensuring the entire marketing and sales team can collaborate effectively.
Read more about Salesforce license models.
Salesforce License Costs
As of 2024, Salesforce pricing for the Sales Cloud and Service Cloud platforms begins at $25 per user per month, with more comprehensive plans reaching up to $500 per user per month.
The pricing tiers offered by Salesforce are as follows:
- Essentials: For small businesses at $25/user/month.
- Professional: Suitable for sales forecasting, priced at $80/user/month.
- Enterprise: Offers customizability at $165/user/month.
- Unlimited: Includes generative AI features at $330/user/month.
- Unlimited+: Provides extensive third-party integrations, costing $500/user/month.
The pricing structure varies significantly between the tiers, with the higher tiers offering more advanced features, such as AI capabilities and better integration options.
Comparing Salesforce Licenses
Choosing the proper Salesforce license is crucial for businesses to meet their needs.
The key elements to consider when comparing licenses include the features they provide and their associated costs.
Here’s a simplified comparison:
| License Type | Features | Cost |
|---|---|---|
| Starter | Offers basic CRM features suitable for small businesses | Most affordable |
| Professional | Provides a complete CRM for any size team | Moderately priced |
| Enterprise | Offers deeply customizable sales CRM for businesses | Higher cost |
| Unlimited | Provides the most comprehensive set of features | Most expensive |
For instance, while the Starter license is the most budget-friendly, it provides fewer features than the Professional, Enterprise, and Unlimited licenses.
Conversely, despite being the priciest, the Unlimited license offers the most extensive features.
Read about common license compliance pitfalls with Salesforce Licensing.
Top 5 Recommendations for Choosing Salesforce Licenses
Selecting the right Salesforce license is a critical decision that can significantly impact your business operations and overall CRM effectiveness.
Making an informed choice ensures you maximize the platform’s potential while staying within budget.
Below are the top recommendations to guide your decision:
1. Understand Your Business Needs
Begin by conducting a detailed analysis of your business requirements. Consider the following:
- Core Objectives: Identify the specific goals you aim to achieve with Salesforce, such as improving customer management, streamlining sales processes, or enhancing analytics.
- Team Requirements: Determine the tools and functionalities your teams (sales, marketing, customer support) will need to perform effectively.
- User Roles: Consider the roles and responsibilities of users accessing the platform. This helps in aligning the license type with their needs.
Example: A small sales team focusing on lead management might benefit from Salesforce Sales Cloud Essentials, while a large organization with complex workflows may require Sales Cloud Enterprise.
2. Consider Your Budget
Salesforce licenses are available at various prices, each catering to different business sizes and needs. Here’s how to evaluate your budget effectively:
- Prioritize Features: Identify non-negotiable features essential for your operations and balance them against the cost.
- Evaluate ROI: Choose a license that aligns with your budget but ensures a high return on investment by improving productivity and customer satisfaction.
Tip: If you’re a startup or small business, consider starting with a basic license like Essentials or Professional. As you grow, you can upgrade to more feature-rich options.
3. Evaluate the Features
Each Salesforce license offers unique features, and understanding these differences is vital. Key considerations include:
- Customization: Determine whether you need advanced customization options for workflows, objects, and automation.
- Integration: Evaluate the ability to integrate with third-party tools or other business systems.
- Analytics: Assess the reporting and dashboard capabilities to ensure they meet your decision-making needs.
- Mobile Access: Verify if mobile-friendly access is included for on-the-go productivity.
Example: Sales Cloud Professional may lack certain automation features in the Enterprise edition, making it unsuitable for businesses with complex needs.
4. Consider Scalability
Think about your future growth and choose a license that can scale with your business. A scalable license ensures you won’t outgrow your CRM solution as your operations expand. Key factors to evaluate include:
- User Limits: Some licenses cap the number of users, which can be a limitation for growing teams.
- Feature Expansion: Higher-tier licenses often include advanced features that may become necessary as your business evolves.
- Global Expansion: If you anticipate entering international markets, choose a license that supports multi-language and multi-currency functionalities.
Example: A growing business might start with Salesforce Professional and upgrade to Enterprise as it expands and requires more robust automation and customization options.
5. Seek Expert Advice
Salesforce licensing can be complex, with various options tailored to specific industries and use cases. Consulting experts can help you make a confident decision:
- Salesforce Consultants: Engage certified Salesforce consultants to analyze your business needs and recommend the most suitable license.
- Customer Success Managers: If you’re already a Salesforce customer, contact Salesforce’s customer success team for tailored recommendations.
- Peer Insights: Speak to businesses in your industry to learn about their experiences with Salesforce licenses.
Tip: Avoid over-licensing by choosing only what you need. An expert can help you identify the optimal license mix for your team.
FAQs
What about Salesforce Inbox licenses?
We have written a blog for you to find out everything about Inbox.
How do I optimize my Salesforce licensing?
t requires reviewing your users and what they need access to; read our salesforce optimization guide.
Does Salesforce offer enterprise agreements?
Yes, Salesforce offers enterprise agreements; they are called SELA.
How to negotiate with Salesforce?
Salesforce is known as one of the most challenging vendors to negotiate with. However, we are sharing our experience and expertise in our negotiation guide.
How does Salesforce licensing operate?
Salesforce licensing is like a lease agreement between Salesforce (the property manager) and the customer organization (the tenant).
A Salesforce license, or a license definition, is a metadata description of the Salesforce features and services available to your organization. Provisioning is the process of activating licenses and enabling functionality in your organization.
What is the cost of a single Salesforce license?
The cost of a Salesforce license varies depending on the type. For instance, the Starter license costs $25 per user per month, the Professional license costs $75 per user per month, the Enterprise license costs $150 per user per month, and the Unlimited license costs $300 per user per month. All these prices are billed annually.
What are the differences between various Salesforce licenses?
Different Salesforce licenses offer different levels of access and functionality. The Starter license, for example, is designed for small businesses and includes basic CRM features.
In contrast, the Unlimited license offers the most comprehensive features and is suitable for large organizations with complex needs.
What does a standard Salesforce license entail?
A standard Salesforce license provides access to the core features of Salesforce, including Account, Contact, Lead, Opportunity Management, Email Integration with Gmail or Outlook, Workflow and Process Automation, Forecast Management, and Pipeline Management.
What is included in the Salesforce Sales Cloud license?
The Salesforce Sales Cloud license provides access to Sales Cloud, Salesforce’s flagship product for sales automation, contact management, and sales forecasting. It includes features like Account and Contact Management, Opportunity Management, Lead Management, Email Integration, Reports and Dashboards, Mobile Access, and more.
Additional FAQs on Salesforce licensing
- How do I determine which Salesforce license type is right for my business?
- Assess your business needs, user roles, and required functionalities. Consider consulting with a Salesforce representative or a certified partner to identify the best fit.
- Can I upgrade or downgrade license types after purchase?
- Yes, Salesforce allows license upgrades. Due to potential feature limitations, it’s best to contact Salesforce support for guidance on downgrades.
- Are there any discounts available for nonprofit organizations?
- Salesforce offers discounts and grants through its Salesforce.org philanthropic arm for eligible nonprofit organizations and educational institutions.
- How does Salesforce enforce license compliance?
- Salesforce has mechanisms to monitor and enforce compliance with license terms, including audits and system checks.
- Can multiple users share a single Salesforce license?
- No, Salesforce licenses are assigned per user and cannot be shared between users for security and compliance reasons.
- What happens if I exceed my license limit?
- You may receive notifications from Salesforce and purchase additional licenses to accommodate the extra users.
- Is there a minimum purchase requirement for Salesforce licenses?
- Minimum purchase requirements vary by license type and contract terms. It’s advisable to check with a Salesforce sales representative.
- How do I add or remove licenses from my Salesforce account?
- Licenses can be added or removed through the Salesforce Setup menu, under “Company Information” or “Users”, or by contacting Salesforce support.
- Are Salesforce licenses transferable between users?
- Yes, licenses can be reassigned to different users within your organization as needed.
- What is the difference between Salesforce User Licenses and Feature Licenses?
- User Licenses determine the base level of access a user has to the platform, while Feature Licenses grant additional capabilities on top of a User License.
- Do Salesforce licenses include access to customer support?
- With Salesforce licenses, basic customer support is included, with options to upgrade to more comprehensive support plans.
- How do I manage and monitor license usage within Salesforce?
- Salesforce provides tools and reports within the Setup menu to help administrators monitor license usage and compliance.
- Can I negotiate custom license terms with Salesforce?
- Large enterprises or customers with specific needs can often negotiate custom terms with Salesforce, including pricing and functionalities.
- What training resources are available for new Salesforce users?
- Salesforce offers a wide range of training resources, including Trailhead, webinars, documentation, and certified training programs.
- How does Salesforce’s pricing compare to other CRM platforms?
- Pricing varies based on the complexity and scale of your CRM needs. Salesforce is known for its extensive features and customization options, which may be reflected in its pricing compared to simpler CRM solutions.
