This article will walk you through different pay models for timesheet software. It is also designed to help you identify the most suitable option, as well as advise on how much you should expect to spend.
As expected from a market as saturated as that of timesheet software, there is a solution for every price range. However, since different vendors offer various pay models, it can be confusing to determine which solution is more cost-effective. We are naturally drawn to lower prices or discount promises, and if approached irresponsibly, this can lead to spending more money than intended. That said, there is no ‘right price’ for digital tools. What matters is how you structure the payments and whether it provides a return on investment over time.
In this blog article, we will explore different pay models and discuss which types of companies they suit. Read this piece with your goals and company structure in mind. These two are the key criteria for choosing the approach that best aligns with your needs and 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 a worthwhile investment because they are more reliable, durable, harder to tamper with, and can be customised based on criteria such as differentiating rates.
Timesheet software also provides other features, such as detailed analysis of either team’s or individual’s performance, diligence when filling in timesheets, and much more. All available at your fingertips at all times due to its broad accessibility across all devices.
Different Pay Models
When deciding the appropriate price for your company to pay for timesheet software, you need to have a clear understanding of how often and how much you will use it. This will help you select the right payment model. There are two most common options to consider, so let’s explore them.
In-app Credits Model
Think of this model as a top-up SIM card or a top-up meter. Essentially, you pay real money to acquire in-app currency that is used to run operations. Usually, different processes will cost varying amounts of credits, depending on their complexity. 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 companies that rely on timesheet software and related features daily, however, such an approach can be very costly. The same applies to those processing large volumes of timesheets. While some platforms offer discounts for purchasing a certain amount of credits, this is often not the case. Additionally, running out of credits mid-operation will naturally halt the process. It can also become expensive if mistakes are made and multiple operations need to be re-run to identify and correct them.
Subscription Model
The most common way to pay for timesheet software is via the subscription model. It is usually billed on a monthly or annual basis. Sometimes, even if the cost is set annually, you might still pay in monthly instalments while committing to a year-long contract. Essentially, this model is straightforward; you simply need to pay close attention to the details of the setup.
Naturally, monthly payments require less commitment and are ideal for companies unsure if they will proceed long-term, as they can cancel at the end of each month. However, annual subscriptions usually offer a more competitive price. Some companies provide both options. Nonetheless, if you break the annual contract, you are likely to lose any money paid for the remaining months and may even be required to pay extra. Therefore, it is important to read the terms and conditions carefully every time since each vendor has different cancellation policies.
Choosing a Subscription Plan
The subscription model extends further. There are various plans available, and, as before, the option you should choose mainly depends on your goals and experiences. There are two options to select from.
Pre-set Package Plans
The most popular subscription model for timesheet software is a selection of package plans, often called tiers. Most vendors provide three or more different packages that vary in features and price. Naturally, the plan with more features will also be in a higher price bracket. Frequently, the more expensive the plan, the more additional benefits you will receive. For example, paying for the top tier might allow you to skip the queue when seeking live support.
Many freemium platforms offer a ‘free’ plan as a level designed for you to explore what the tool provides. Usually, if you want to upgrade or downgrade, you will need to contact the sales team. However, some software, like Hubspot, will automatically move you to the next level once you exceed your limit. The main issue is that the price difference between packages is often quite steep. It’s also quite likely you won’t need all the features included in the higher tier.
Build Your Own Plan
A less common pricing option is to build your own package. Essentially, the vendor will list prices for various features and potential differences based on capacity. You, at this point, can mix and match them, effectively creating your own platform. This approach allows you to easily stay within your budget, focus only on your immediate needs, and explore additional features with minimal financial impact, being able to disable them at any time.
However, for this approach to succeed, you must have a full understanding of your current situation and the goals you’re aiming to achieve. You also need to be familiar with the type of solution you're considering, how it works, and what the basic requirements are. If it’s your first time using timesheet software, it’s best to opt for an off-the-shelf solution just to get a grasp of its features. Otherwise, you risk leaving out crucial features from your plan, which could prevent you from reaching your objectives.
Customisation is the Safest Option
There are many reasons to customise everywhere you can. When it comes to pricing specifically, customisation can help you save money in both the short and long term. All thanks to one small, extremely convenient benefit.
Upgrade or Downgrade with Ease
While creating a payment plan tailored to your needs is excellent, remember that your requirements are likely to change over time. Most vendors will be happy to upgrade you whenever you request, but many may delay if you decide to omit some features to cut costs. This can be very frustrating and may still end up costing you the money you intend to save.
There is a solution, although it requires some research in advance. Specifically, choosing a tool that you can upgrade or downgrade yourself, without needing a company’s representative involved. For example, at Timesheet Portal, you have complete freedom to customise the list of features you use at any time. Our system will automatically update your bill based on the features you utilise, without you needing to contact us. We recognise that circumstances change, and we aim to support your business at all times. That is why we give you full control over the platform - including the pricing.
Summary
It is impossible to determine the right price for timesheet software, as it varies depending on the company and various factors. However, analysing different payment models can help you understand what might work for you. If you are not a frequent timesheet user or handle small volumes, the in-app credit model will be most suitable. It involves little to no commitment and irregular payments based on usage. Otherwise, you should opt for a subscription model. Whether it should be a monthly or annual plan depends again on your usage.
Adopting a subscription model offers more choices. Specifically, you can opt for a package deal or build your own platform and pay only for the features you use. If you haven’t used a timesheet solution before, it’s best to choose a package to understand how it works. Otherwise, we usually recommend a custom-built solution. Not only does it meet your specific needs, but it is also easy to modify, whether you need an upgrade or a downgrade, often without involving a sales representative.
Wondering how much Timesheet Portal would cost you? Let us advise you.