This article will guide you through different pay models for timesheet software. It is also meant to help you identify the right one, as well as guide you in how much you should be expecting to spend.
As expected from a market as saturated as that of timesheet software, there is a solution for every price bracket. However, given different vendors will offer different pay models, it can get confusing which solution is more budget-effective. We are wired to be attracted to lesser price tags or discount promises, and that, if approached irresponsibly, can lead to spending more money than expected. That said, there is no ‘right price’ for digital tools. There is determining how you spread the payments and if it generates ROI moving forward.
In this blog article, we will be looking at different pay models and discussing what type of companies they serve. Read this piece with your goals and company structure in mind. These two are the key criteria for determining what is the approach best aligned with your needs and your budget.
Are Timesheets Worth It?
There is some hesitation when it comes to investing in timesheet software. Is it worth digitising timesheets when the traditional paper approach works? Yes. Digital timesheets are worth investment because they are more reliable, durable, harder to tamper with and can be customised following criteria such as differentiating rates.
Timesheet software also offers other features, such as in-depth analysis of either team’s or individual’s performance, diligence when filling up timesheets and much more. All at your fingertips at all times due to its wide accessibility across all devices.
Different Pay Models
When determining what is the right price for your company to pay for timesheet software, you need to have a clear understanding of how often and how much you will be using it. It will help you choose the right pay model. There are two most common ones to choose from, so let’s dig into them.
In-app Credits Model
Think of this model as a top-up SIM card or a top-up meter. Basically, you pay real money to get an in-app currency that will be used to run operations. Usually, different processes will cost different amount of credits, depending on how complicated they are. It’s a great model for companies that don’t use timesheets extensively, frequently or only have a few workers as it costs less than a subscription.
For the companies that rely on timesheet software and features adjacent to it on day-to-day basis, however, such an approach can prove to be very costly. As well as to those that are processing big volumes of timesheets. While some platforms will offer discounts when purchasing specific amounts of credits, most commonly it’s not the case. Also, running out of credits mid-operation will naturally stall it. It can also come out costly if there were mistakes made and you need to re-run several operations multiple times to both identify and correct them.
Subscription Model
The most common way to pay for timesheet software is the subscription model. It is typically set to be on either a monthly or annual basis. Sometimes, despite the cost being set as per annum, you will still be paying in monthly instalments but will have a binding contract to make payments for a year. In its essence, this model is simply to understand, you just need to pay attention to details on how it is set.
Naturally, monthly payments require less commitment and are best for companies that aren’t sure they will proceed with the solution long-term as they can quit end of every month. However, annual subscriptions normally come at a more competitive price. Some companies will offer both options. However, if you break out of the annual contract, not only are you likely to lose the money for the months remaining but could potentially be required to pay extra. For this reason it’s important to read terms and conditions thoroughly every time for every vendor has different cancellation policies.
Choosing a Subscription Plan
The subscription model branches further. There are different plans available and, just like before, the one you should stick to will largely depend on your goals and your experiences. There are two options to choose from.
Pre-set Package Plans
The most popular timesheet software subscription model is a selection of package plans. They can also be known as tiers. Most vendors offer three or more different packages that differ in functionality and pricing. Naturally, the plan that comes with more features will also come at a different price bracket. Very often the higher in cost you go, the more additional benefits you’ll be offered. For example, if you pay for the top tier, you may jump the queue when reaching out for live support.
A lot of freemium platforms offer a ‘free’ plan as a tier too, that is meant to be there for you to explore what the tool can offer. Usually, if you want to upgrade or downgrade, you will need to get in touch with the sales reps. However, some software, Hubspot for example, will move you to the next tier automatically once you exceed your allowance. The key issue is that the price difference between the packages is usually very steep. It’s also very likely you won’t be needing all the features that come with the more expensive tier too.
Build Your Own Plan
A less common pricing option is building your own package. Namely, the vendor will list prices of various features and potential differences based on the capacity. You, at this point, will mix and match them, essentially building your own platform. This way you can easily fit into your budget, address only the direct needs you have and explore additional features with little to no financial losses, being able to disable them anytime.
However, for this approach to work you must have full understanding of your current situation and the goals you’re trying to achieve. You also need to be familiar with the type of solution you are considering, how it works and what are the basic requirements. If it’s your first time employing timesheet software, it’s best you go for an off-the-shelf solution, just to understand the ins and outs of it. Otherwise, you risk excluding crucial features out of your plan, which will prevent you from achieving your goals.
Customisation is the Safest Option
There are many reasons why you should customise everywhere you can. When talking about pricing specifically, customisation can help you save money both short-term and long-term. All because of one little, highly convenient benefit.
Upgrade or Downgrade with Ease
While creating a payment plan that is customised to your needs is great, keep in mind that your needs are likely to change with time. Most vendors will be happy to upgrade you whenever you request that. However, many are likely to drag their feet if you opt out of a couple of features to reduce your costs. This can be very frustrating and still end up costing you the money you want to save.
There is a solution, even though it will need some research beforehand. Namely, choosing a tool that can be upgraded or downgraded of your own volition, without getting a company’s representative involved. For example, at Timesheet Portal you have full freedom to customise the list of features you use at any given time. Our system will automatically adjust your bill moving forward based on the features you use, without you having to call us up. We understand that circumstances change and we seek to support your business no matter what. This is why we give you full control over the platform - including the pricing.
Summary
It is impossible to answer what is the right price for timesheet software. It is different for every company based on a variety of factors. However, analysing different pay models can help you understand what it’s looking like for you. If you’re not a frequent timesheet user or deal with small volumes, the in-app credit model will be best for you. It entails close to no commitment and irregular payments based on use. Otherwise, you should stick to a subscription model. Whether it should be a monthly or annual plan will once again depend on your usage.
Going forward with a subscription model means additional choices. Namely, whether you will settle for a package deal or if you will build your own platform and only pay for the features you use. In case you haven’t used a timesheet solution before, it’s best to go for a package to study the ins and outs. Otherwise, we always recommend a custom-built solution. Not only does it address your direct needs but is also easy to adjust whether you need an upgrade or a downgrade, often without needing to have a sales rep involved.
Wondering how much would Timesheet Portal cost you? Let us consult you.
