1. Salesforce Licensing Overview
Salesforce operates on a subscription-based, per-user licensing model with a wide range of editions and licence types. Every user needs an appropriate licence that determines what features and data they can access. For example, Sales Cloud Enterprise licences provide comprehensive CRM functionality, while Salesforce Platform licences offer more limited access focused on custom applications.
Large enterprises often accumulate dozens of different Salesforce products and licence types — Sales Cloud, Service Cloud, Platform, Community/Experience Cloud, Analytics, Marketing Cloud, and more — making licence management complex and expensive. Understanding how Salesforce Platform Licensing fits into this ecosystem is crucial: it allows ITAM teams to ensure users have the right level of access without overspending on features they don't need.
For a complete overview of all Salesforce licence categories, see Salesforce Licence Types — A Complete Guide.
2. Platform Licences vs Full CRM Licences
A Salesforce Platform licence (also called a Lightning Platform licence) is designed for users who don't require the full suite of CRM objects such as Leads, Opportunities, or Cases. Platform users can still access core data (Accounts, Contacts) and use custom apps built on the Salesforce platform, but they are restricted from standard sales and service features.
This makes Platform licences ideal for employees or partners who use Salesforce primarily as a custom application platform or for specific tasks — data entry, approvals, viewing reports, or running internal workflows — without engaging in direct sales or service processes.
| Capability | Full CRM (Sales/Service Cloud) | Platform Starter | Platform Plus |
|---|---|---|---|
| Accounts & Contacts | ✅ Full access | ✅ Full access | ✅ Full access |
| Leads & Opportunities | ✅ Included | ❌ Excluded | ❌ Excluded |
| Cases & Service Console | ✅ Included | ❌ Excluded | ❌ Excluded |
| Custom objects | Up to 2,000 | Up to ~10 | Up to ~110 |
| Custom apps & automation | ✅ Full platform | ✅ Core platform (flows, reports) | ✅ Extended platform capabilities |
| API access | ✅ Included | ✅ Included | ✅ Included |
| Lightning Console UI | ✅ Included | ❌ Excluded | ✅ Included |
| Typical list price | ~$165/user/month (Enterprise) | ~$25/user/month | ~$100/user/month |
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3. Key Licence Types and Cost Structure
Salesforce's pricing varies widely depending on edition and licence type. List prices (per user, billed annually) range from approximately $25/user/month for basic Platform to over $330/user/month for Unlimited+ editions.
| Licence Type | Typical List Price | Use Case |
|---|---|---|
| Lightning Platform Starter | ~$25/user/month | Users needing Accounts, Contacts, and up to 10 custom objects. Ideal for light custom app access and basic data entry. |
| Lightning Platform Plus | ~$100/user/month | Users requiring more complex custom apps (up to ~110 custom objects) but still not using standard CRM modules. |
| Sales Cloud Enterprise | ~$165/user/month | Full CRM users needing Leads, Opportunities, Forecasting, and complete sales functionality. |
| Service Cloud Enterprise | ~$165/user/month | Full CRM users needing Cases, Service Console, Knowledge, and complete service functionality. |
| Salesforce Unlimited | ~$330/user/month | Power users needing unlimited customisation, extended support, and the complete range of CRM features. |
| Community / Experience Cloud | Varies (login-based or member-based) | External users — customers, partners, suppliers. See Community Salesforce Licensing Guide. |
Approximate list prices as of 2025. Enterprise deals are negotiable — see Section 6.
Additional Cost Drivers
| Cost Driver | Impact | What to Watch |
|---|---|---|
| Add-on products | CPQ, Tableau, Marketing Cloud, Slack, MuleSoft — each with separate licensing | Ensure each add-on has clear, itemised pricing. Challenge bundled components you don't need. |
| Support plans | Premier or Signature Success plans add 15–30% to licence costs | Evaluate whether enhanced support delivers measurable value for your organisation. |
| Storage & sandboxes | Core licences include baseline storage; large enterprises often exceed it | Monitor data storage consumption. Full-copy sandboxes are expensive add-ons. |
| Multi-year contracts | Lock in discounts but may include built-in 5–10% annual uplifts | Negotiate caps on price increases — ideally 3–5% or flat pricing for the full term. |
| Licence minimums | You cannot reduce licence counts mid-term under standard Salesforce contracts | Build flexibility into the contract. See Managing Salesforce Minimums & True-Ups. |
For a deep dive into all licensing models, see Salesforce Licence Models Explained.
4. Common Pitfalls in Platform Licensing
| Pitfall | What Happens | Financial Impact |
|---|---|---|
| Shelfware (unused licences) | Over-purchased licences sit idle. 500 Platform licences bought, 300 active — 200 wasted. | $60,000+/year at Platform Starter rates. Far higher with full CRM licences. |
| Over-licensing with full CRM | Every user gets Sales Cloud by default, even those who only use custom apps or view reports. | $140/user/month premium per user who could function on Platform Starter. |
| No renewal price cap | Salesforce applies 5–10% annual uplifts at renewal. Three years of uncapped increases = 15–30% cost growth. | Hundreds of thousands over a multi-year term for large deployments. |
| Bundled add-ons not used | Salesforce bundles extras (sandboxes, analytics seats) that obscure itemised pricing and create shelfware. | Hidden costs embedded in the annual subscription that go unnoticed. |
| Rigid contract commitments | Fixed quantities over a long term with no reduction flexibility. Downsizing or strategy changes leave you stuck paying. | Potentially millions in sunk costs if workforce shrinks or tools change mid-term. |
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5. Optimising Licence Usage and Compliance
Audit Usage
Use Salesforce admin reports or third-party SaaS management tools to identify inactive users, login frequency, and feature usage. Pinpoint both unused licences and users who are candidates for a lower tier.
Rightsize & Reallocate
Deactivate leavers immediately. Move users who only view reports or use custom apps from full CRM to Platform licences. Reserve expensive licences for genuine sales/service users.
Leverage Community Licences
For non-employees (contractors, customers, partners), use Experience Cloud licences instead of internal user licences. Login-based pricing can be far cheaper than member-based for infrequent users.
Monitor & Reclaim
Set quarterly review cadences. Track API call limits, storage consumption, and licence utilisation. Reclaim unused licences before renewal to reduce your committed baseline.
| Optimisation Action | Savings Potential | Effort Level |
|---|---|---|
| Reclassify full CRM → Platform | 💰💰💰 High ($140/user/month saved per user) | Medium — requires role-by-role analysis |
| Eliminate shelfware | 💰💰 Medium–High (depends on unused volume) | Low — run login activity reports |
| Downgrade edition tiers | 💰💰 Medium (Enterprise → Professional for eligible users) | Medium — evaluate feature dependencies |
| Use Community/Experience Cloud for external users | 💰💰 Medium (avoid full internal licence costs) | Medium — requires portal setup |
| Negotiate renewal caps | 💰💰💰 High (prevents 5–10% annual creep) | Low — purely a contractual negotiation |
| Drop unused add-ons | 💰 Moderate (varies by add-on) | Low — review contract line items |
For comprehensive management strategies, see Salesforce Licence Management: Challenges and Best Practices.
A global manufacturer had 2,400 Salesforce Enterprise licences ($165/user/month) across its sales, operations, and finance teams. An independent review revealed that 900 users — mostly in operations and finance — only used custom apps for project tracking and never touched Leads, Opportunities, or Cases. By reclassifying those 900 users to Platform Starter licences ($25/user/month), the company reduced its annual Salesforce spend by $1.5 million. The reclassification was implemented at renewal with no disruption to users, who retained full access to their custom apps.
6. Negotiating Salesforce Agreements
Negotiation is a normal part of enterprise Salesforce licensing — the sticker price is always a starting point. Salesforce's published prices are highly negotiable, especially for large or strategic customers.
| Negotiation Strategy | Why It Works | Key Tactic |
|---|---|---|
| Start 6–12 months early | Avoids last-minute pressure. Gives time to evaluate alternatives and build internal consensus. | Define objectives upfront: "reduce total cost by 20%" or "add 200 Platform licences at no net increase." |
| Leverage fiscal year-end timing | Salesforce reps have quarterly and annual targets (fiscal year ends Jan 31). | Time final negotiations to coincide with Salesforce quarter-end for maximum discount leverage. |
| Demand itemised pricing | Bundles obscure per-component costs and create hidden shelfware. | Insist on transparent pricing for each licence type, add-on, and support tier separately. |
| Negotiate renewal caps | Prevents 5–10% annual uplifts that compound over multi-year terms. | Insist on a contractual cap of 3–5%, or lock flat pricing for the full term. |
| Build in reduction flexibility | Protects you if workforce shrinks, strategy changes, or a business unit is divested. | Negotiate the right to reduce licence counts by 10–15% at each renewal anniversary. |
| Negotiate licence swap rights | Allows you to convert full CRM licences to Platform (or vice versa) without penalty. | Include a clause permitting licence type conversions at renewal at adjusted pricing. |
For detailed negotiation playbooks, see Salesforce Contract Negotiation Strategies and Salesforce Renewal Negotiation Tips.
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7. Recommendations and Checklist
- Inventory all licences and usage. Compile a detailed list of all Salesforce licences by type, quantity, and cost. Map against actual usage (active users, login frequency, feature use) to spot immediate mismatches or waste.
- Identify Platform licence candidates. For each user or department, ask: "Do they need full CRM?" Flag candidates who only use custom apps, run reports, or perform approvals for Platform Starter or Plus downgrade.
- Review current contract terms. Pull out your Salesforce contract. Note key dates (renewal, notice periods) and terms (price escalation clauses, existing discounts, minimum commitments). This sets the stage for renegotiation.
- Set negotiation goals and timeline. Define clear objectives (e.g., "save $X", "add 200 Platform licences at zero net increase", "cap uplift at 3%"). Establish an internal timeline to engage Salesforce 6–12 months before renewal.
- Execute, document, and monitor. Negotiate with usage data and objectives in hand. Ensure all negotiated items are captured in writing. After signing, update records with new entitlements and set quarterly review reminders.
💡 8 Expert Recommendations
1. Perform regular licence audits — eliminate shelfware and rightsize counts before renewals.
2. Leverage Platform licences for every user who doesn't need full CRM functionality.
3. Negotiate renewal caps (≤5%) in every Salesforce contract.
4. Start negotiations 6–12 months early. Use end-of-quarter timing for maximum leverage.
5. Demand itemised pricing — transparency ensures you only pay for what you use.
6. Revisit your licence mix periodically. Roles change; licences should change with them.
7. Engage independent experts for large, complex deals — their benchmarks pay for themselves.
8. Document every commitment in writing. Verbal promises from Salesforce reps mean nothing without contractual language.
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