Salesforce Negotiations

Negotiating Salesforce Marketing & Commerce Cloud Deals

Negotiating Salesforce Marketing & Commerce

Negotiating Salesforce Marketing & Commerce Cloud Deals

Salesforce’s Marketing Cloud and Commerce Cloud come with pricing models – per contact, per transaction – very different from core CRM licenses.

This article examines how those differences impact negotiations and what enterprise buyers can do to minimize cost surprises.

With more businesses expanding into Salesforce’s marketing and e-commerce platforms, it’s crucial to adjust your negotiation approach to keep costs in check.

Understanding Salesforce Pricing Models: Users vs. Contacts vs. Transactions

In Marketing Cloud and Commerce Cloud deals, pricing is based on usage metrics rather than per-user fees.

For example, Marketing Cloud cost is tied to how many customer contacts you have (and how many messages you send), while Commerce Cloud fees are a percentage of your sales revenue.

Here’s a comparison of models:

Salesforce ProductPricing ModelPrimary Cost Driver
Core CRM (Sales/Service)Per user (subscription license)Number of user licenses (seats)
Marketing Cloud (B2C)Per contact tier + messaging useSize of contact database; emails/SMS sent
Commerce Cloud (B2C)Percentage of GMV (sales)Online sales volume (annual revenue)

These usage-based models mean costs can climb as you succeed – more customers or sales equals a higher bill. This is very different from the predictability of fixed-seat pricing. Enterprise buyers must closely monitor these usage metrics and forecast growth to avoid surprises.

Marketing Cloud: Contact-Based Pricing Can Spiral Costs

Insight: In Marketing Cloud (and the B2B variant Account Engagement/Pardot), pricing is based on contacts rather than per-user seats. Hitting a higher contact tier can suddenly drive up costs. You might even incur thousands of dollars in costs for inactive contacts if you’re not careful, making cost projections challenging.

Scenario: A global retailer saw its Marketing Cloud renewal quote jump sharply because its customer list had grown. Many of those contacts were dormant, yet Salesforce’s tiered pricing meant the company had to pay for all of them.

Takeaway: Only pay for active value. Clean up your contact database before renewal to eliminate “ghost” contacts. Negotiate a buffer or flexible tier so moderate growth doesn’t trigger an immediate price jump. And push back on bundled add-ons – remove or deeply discount any component your team isn’t using. The goal is to align costs with real, engaged contacts and essential functionality.

Commerce Cloud: GMV-Based Fees Require Careful Planning

Insight: Salesforce Commerce Cloud (e-commerce platform) uses a percentage of your online sales revenue as its fee. This acts like a revenue share or “success tax” – if your sales double, your fees double too. Booming sales can translate into a booming Salesforce bill.

Scenario: One company’s online sales grew from $50 million to $200 million after adopting Commerce Cloud.

With a 2% fee in their contract, their Salesforce costs quadrupled alongside that growth. Because they hadn’t negotiated any cap or tiered rate, they faced an eye-popping increase just for doing well.

Takeaway: Don’t accept an uncapped percentage. When negotiating Commerce Cloud, aim for a lower percentage or a tiered pricing structure (for example, the rate drops beyond a certain sales threshold) or set a maximum fee.

At a minimum, build in flexibility so you’re not penalized for success. You can also bundle this with other Salesforce deals to get better overall discounts on the platform.

Don’t Negotiate in Isolation – Bundle Your Salesforce Deals for Leverage

Insight: One common mistake is treating Marketing Cloud or Commerce Cloud as standalone purchases. Salesforce often negotiates these clouds separately, which erodes your bargaining power. By bundling deals into one big negotiation, you present a larger contract value, and Salesforce has more incentive to offer concessions.

Scenario: A company that made Marketing Cloud a standalone mid-term purchase ended up with a minimal discount, whereas another that bundled Marketing Cloud into a large Sales Cloud renewal secured a far better deal.

Takeaway: Leverage your total Salesforce spend. Whenever possible, co-term and negotiate all your Salesforce products as a unified deal. Coordinate internally so Salesforce hears one voice from your organization. A consolidated approach can unlock bundle discounts and prevent the vendor from playing one group off against another.

Recommendations

  • Audit and clean your usage: Before negotiating, analyze current usage (contacts, emails, transactions) and identify any Salesforce shelfware. Remove or reduce anything you’re not using (e.g., purge inactive contacts, drop unused modules) so you enter talks with a lean needs profile.
  • Bundle your Salesforce deals: Align Marketing Cloud and Commerce Cloud renewals with your core Salesforce renewal or major contracts. A combined negotiation for a bigger contract gives you more leverage to obtain larger discounts and better terms.
  • Negotiate beyond price: Don’t just haggle on list prices – push for flexible terms. For example, obtain the right to adjust volumes as needed, cap year-over-year price increases, and ensure you can drop or add products with minimal penalties. Lock in protections to prevent surprises later.
  • Leverage benchmarks and options: Come prepared with insight into what similar enterprises pay (if available) and keep alternative solutions in mind. Even if switching is tough, showing that you have other options and solid pricing data will pressure Salesforce to be more competitive.
  • Prepare and start early: Plan your strategy well in advance. Engage all stakeholders (IT, marketing, procurement, finance) to set objectives, then approach Salesforce early with a united front. Early, well-coordinated negotiations avoid last-minute scrambles and give you time to secure the best deal.

Checklist: 5 Actions to Take

  1. Audit your Salesforce stack: List all Salesforce products (CRM, Marketing Cloud, Commerce Cloud, etc.), current contract terms, and actual usage metrics (e.g., contact counts, storage, sales volumes). Flag any underutilized licenses or features.
  2. Align internally on needs: Bring together marketing, commerce, IT, and procurement to agree on what you truly need, your budget limits, and key priorities for the next term. (Internally unified goals will strengthen your position.)
  3. Right-size before renewal: Clean up and optimize ahead of negotiations – purge redundant contacts, eliminate unused modules, and downgrade anything you don’t need. Enter talks with a lean usage footprint.
  4. Engage Salesforce as one team: Inform your Salesforce rep that you intend to negotiate all contracts together. Request a comprehensive proposal that encompasses all desired products in a single package.
  5. Negotiate and verify: Push for the best discounts and flexible terms (no automatic price hikes, ability to adjust volumes). Ensure that all negotiated concessions (support terms, price caps, etc.) are written into the final contract before it is signed.

FAQ

Q1: How is Salesforce Marketing Cloud pricing structured?
A: It’s primarily based on the number of marketing contacts in your database (sold in tiers), plus any messaging volume; essentially, the more contacts or emails you utilize, the more you pay.

Q2: How does Salesforce Commerce Cloud pricing work?
A: Commerce Cloud uses a revenue-share model, charging a percentage of your online sales; you can and should negotiate that percentage or set a cap on it.

Q3: Should we bundle Marketing Cloud and Commerce Cloud with our Salesforce renewal?
A: Yes – combining them into your main Salesforce renewal (instead of separate deals) usually yields better discounts and a more favorable, simplified contract.

Q4: What discounts can enterprise customers get on these clouds?
A: Big enterprises often secure substantial discounts (20% or more off list) through negotiation; the exact figure varies by deal, but Salesforce’s list prices are just a starting point.

Q5: How do we avoid overpaying for unused capacity or features?
A: By monitoring your usage and cleaning up regularly – remove inactive contacts and drop any add-ons you’re not using – so you’re only paying for what you need; also negotiate terms that let you scale down if necessary.

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