Licensing Custom Apps on Salesforce: Force.com Licensing Explained
Building custom apps on Salesforce? The Salesforce Platform (formerly known as Force.com) enables enterprises to create powerful custom applications — but determining the licensing for those apps can be confusing and costly.
This expert guide breaks down how Salesforce custom app licensing works, the differences between user-based vs. app-based models, typical cost structures (and hidden pricing traps to avoid), and savvy negotiation tactics to ensure you get the best deal.
Whether you’re a CIO, procurement lead, or IT exec, these insights will help you optimize costs and negotiate favorable terms for your custom applications on Salesforce.
For a comprehensive overview, please read our Salesforce Platform and Custom App Licensing Strategy and Negotiation Guide.
Understanding How Salesforce Custom App Licensing Works
What Are Salesforce Platform and Force.com Licenses?
Salesforce offers special Platform licenses (often still referred to as Force.com licenses) designed for users who only need access to custom apps – not the full CRM. In contrast to a standard Sales Cloud or Service Cloud license (which provides complete CRM functionality), a Salesforce Platform license is limited to custom applications and core platform features.
Platform users can typically access standard objects, such as Accounts, Contacts, reports, and dashboards, but cannot utilize core CRM features, including Leads, Opportunities, Cases, or Campaigns.
In practical terms, Salesforce Platform licenses are ideal for employees who use custom-built apps on Salesforce (for example, an internal HR app or project management app) without needing traditional CRM modules. They are significantly lower in cost than full CRM licenses.
This means you don’t have to pay full price for users who aren’t in sales or service roles. The key takeaway: If a user doesn’t require Sales/Service Cloud features, you can assign them a Platform (Force.com) license and dramatically cut licensing costs.
It allows them to use all your custom apps on the platform while keeping Salesforce spend in check.
Read about Pricing for Large Force.com Deployments.
User-Based vs. App-Based Licensing Models
When licensing custom apps on Salesforce, there are two primary models to consider: user-based licensing and app-based licensing.
- User-Based Licensing: This is the traditional Salesforce approach – you purchase a license for each named user. Each user with a platform license can access any number of custom apps in your org (within the limits of that license’s capacity). This model is straightforward: you pay a fixed price per user (usually per month or year), and those users can utilize all the custom applications they are permitted to use. User-based licensing is ideal if individuals in your organization need to work across multiple apps. It simplifies management (one license covers a user’s access to various apps) and is often more cost-efficient when each user engages with several different apps.
- App-Based Licensing: In this model, the cost is tied to a specific application rather than to each user. Salesforce historically offered a “Force.com app bundle” or Lightning Platform App licenses, where you essentially license an app for usage. Practically, this still involves user licenses under the hood (often termed “per app, per user” licenses) – but the idea is that you’re paying a smaller fee for a user to access a single designated app, instead of paying for broad platform access. App-based licensing can make sense if you have a large number of users using only one application. For example, imagine an internal employee directory app that all 5,000 of your employees will use. Rather than buying 5,000 full-platform user licenses, you might license the app itself (at a lower per-user cost, restricted to that app). In some enterprise deals, Salesforce may even offer an unlimited-use license for a specific app (a fixed price that allows any number of users to access one application), though these arrangements are special and must be negotiated.
Pros and Cons:
User-based licensing offers simplicity and flexibility – one user license can cover multiple apps, making it ideal if your users need access to various solutions. However, it can be overkill (and expensive) if a user only needs a single, small app. App-based licensing can be more cost-effective for broad, single-app deployments (you pay only for what’s needed per app).
Still, it can become complex to manage if users eventually require multiple apps (each requiring an additional license). There’s also a risk of fragmentation: tracking which users have access to which app license can be administratively cumbersome.
Many organizations find that a hybrid approach works best – using app-based licenses for certain high-volume apps and user-based platform licenses for power users or users who utilize multiple apps.
Cost Structures and Pricing Traps
Cost Models: Salesforce Platform licenses are much cheaper than full CRM licenses – often on the order of 20–30% of the cost of a Sales Cloud license. For instance, a full Sales Cloud user might cost several hundred dollars per month, whereas a Platform user license might be a fraction of that (often quoted at around $25 per user/month for a basic platform seat).
App-based licenses (for one custom app) could be even lower per user, though they come with limitations (such as a cap on the number of custom objects or tabs that the app can use, typically around 10).
Salesforce offers tiers such as Lightning Platform Starter (lower cost, suitable for small apps) and Platform Plus (higher cost, designed for more complex apps with higher object counts or increased usage).
The main point: choose the license tier that matches the complexity of your app, so you’re not overpaying for functionality you don’t need.
Hidden Costs to Watch: Simply comparing per-user license prices tells only part of the story. Enterprises building on Force.com should be aware of several add-on costs and potential traps in the cost model:
- Data Storage: Custom apps can generate a lot of data (records, files, attachments). Salesforce includes only a modest amount of storage with your licenses. Extra data storage is notoriously expensive if purchased a la carte. A custom HR app, for example, that stores HR cases or uploaded documents could quickly hit storage limits. Negotiate for additional storage upfront or develop a strategy (such as archiving or external storage integration) to avoid unexpected bills.
- API Usage: Many custom applications integrate with other systems or involve heavy automation, which consumes a significant number of API calls. Salesforce imposes API call limits based on your licenses and edition. If your app is API-intensive (e.g., a mobile app interface or numerous integration jobs), you may need to purchase additional API capacity or upgrade to a higher edition. Be mindful of API limits to prevent your app from grinding to a halt, and consider negotiating higher limits if your use case requires it.
- Sandboxes and Environments: Building and maintaining custom apps requires sandbox environments for development and testing. Salesforce Enterprise Edition, for instance, includes some sandboxes, but full copy sandboxes (which replicate all your production data) often cost extra unless you have the top-tier Unlimited Edition. If you need multiple or full-scale testing environments for your app development lifecycle, include those in your cost calculations. It may be possible to negotiate a package that includes extra sandboxes or even developer org licenses at a reduced cost.
- Unused Licenses (Shelfware): A big budget killer is paying for more licenses than you use. It’s easy to overestimate how many users will adopt the new custom app and lock in a large number of licenses upfront (especially under multi-year contracts). Those unused licenses sitting “on the shelf” are pure waste (often called shelfware). Always try to size your license purchase according to your actual expected usage – and avoid long-term commitments that don’t allow for adjustments. We’ll discuss negotiation strategies to mitigate this, such as “true-down” rights to reduce license counts later.
- Renewal Price Increases: Be aware that Salesforce often offers a generous initial discount or incentive, but prices can increase significantly at renewal. A common scenario is a 10-20% price hike after the first term. This can blow your cost projections if not anticipated. It’s wise to negotiate caps on renewal increases (for example, ensuring that your per-user cost can only increase by no more than X% in the next term).
In summary, when modeling the total cost of licensing your custom app, look beyond the sticker price of the licenses. Consider storage, integration, support, sandboxes, and future growth. A seemingly cheap app license can become expensive if you hit an unforeseen limit.
Negotiation Tactics for Custom App Licensing
Entering a Salesforce licensing negotiation armed with the right tactics can save your company significant money and future headaches.
Here are some insider strategies to negotiate the best terms for custom app licensing:
- Mix and Match Models: Don’t assume you must pick one licensing model exclusively. Salesforce’s licensing is flexible in that you can have a mix of full CRM users, platform users, and even app-specific licenses within the same agreement. Leverage this by crafting a hybrid model. For example, if you’re rolling out one custom app company-wide but also have a few power users building many apps, negotiate a batch of app-based licenses for the big single-app rollout and some user-based platform licenses for those who need to access multiple apps. Blending models can optimize cost for each use case.
- Volume and Scale Discounts: If you plan a large deployment (e.g., thousands of users for a new custom application), use that as leverage. Salesforce typically offers tiered discounts at higher volumes, but you must request them. Come to the table with a clear picture of your adoption rollout — for instance, “500 users in year one scaling to 5,000 users next year” — and push for pricing that reflects that scale. The bigger your commitment (or the faster you ramp up), the more negotiating power you have to lower the per-user or per-app rate.
- Contract Flexibility (True-Down and Reallocation): A critical negotiation point is flexibility to adjust your licenses as needs change. Try to include a “true-down” clause, which allows you to reduce the number of licenses (and cost) at renewal if you find you bought too many. Similarly, negotiate the right to reallocate licenses between apps or users. For example, if you license 1,000 users for App A but only 700 end up using it, you should be able to apply the surplus toward another app or a different group, rather than paying for unused seats. The goal is to avoid being stuck with shelfware or misallocated capacity for the duration of a contract.
- Negotiating App-Based Deals: If your use case involves a single app for a massive audience (such as an internal portal for all employees), consider discussing alternative pricing models with Salesforce. They may offer a site license or all-you-can-use pricing for that app, especially if the app has a limited scope. Salesforce might not advertise it, but for strategic deals, they sometimes agree to a flat fee for an unlimited or very high number of users on a single app, rather than counting each user. Use competitive alternatives (such as other low-code platforms or in-house solutions) as a gentle pressure point – let Salesforce know you have options, which can motivate them to be more flexible with pricing.
- Include Add-Ons in Negotiation: As mentioned in the cost traps, add-on costs (such as storage, sandboxes, API, and support) can bite hard. Negotiate these into the deal. For instance, if you anticipate needing 100GB of extra storage for your app’s data, ask for a discounted rate or some amount to be included. If you need a full sandbox for testing, see if it can be bundled. It’s easier to get concessions on these during an initial negotiation (when Salesforce is eager to close the deal) than later when you desperately need them.
- Lock in Renewal Protections: Don’t finish negotiations without addressing what happens in the next cycle. Push for a cap on annual price increases, or even better, a multi-year price lock on the per-license rate. If you’re committing to a large number of licenses or a multi-year term, you have leverage to say “we need predictability – no more than 5% increase at renewal” or similar. Also, try to align the contract with Salesforce’s fiscal end-of-quarter or year when possible – Salesforce representatives have quotas and may offer better discounts as deadlines approach.
- Benchmark and Bring Data: Salesforce licensing isn’t publicly disclosed with a rate card, and large enterprises often receive custom pricing. Do your homework on what other companies pay for similar volumes or use cases (if you have contacts or can employ a consultant who knows the market). Having a benchmark (even an anonymized one) can strengthen your position – e.g., “We’ve seen other organizations our size license the Platform for ~$X per user, we’re looking for something in that range.” Salesforce is more likely to concede when you demonstrate you know the going rate.
In negotiations, always remember you do have leverage: the ability to walk away or delay, the presence of alternate platforms, and the fact that Salesforce wants to expand within your company.
Be polite but firm about what your enterprise needs, and don’t be afraid to ask for concessions – the worst they can say is no, and often they’ll find middle ground to close the deal.
Practical Scenarios — Where Platform Licensing Makes Sense
Not sure when to use a Salesforce Platform (Force.com) license instead of a standard license?
Here are common scenarios where Platform licensing delivers maximum value:
- Internal Department Apps: When building apps for internal teams, such as HR, Finance, or Operations, those users typically don’t use core CRM features. For example, a custom HR case management app or an IT help desk app built on Salesforce can be given to employees with Platform licenses. There’s no reason to pay for Sales Cloud licenses for HR staff or IT agents if they won’t be using opportunities or customer cases.
- Employee Self-Service Portals: Perhaps you’re creating an app for all employees to use (such as a company-wide directory, onboarding request system, or facilities request app). These enterprise-wide apps often involve a large number of occasional users. Licensing an app with Platform or app-based licenses is far more cost-effective than providing every employee with a full Salesforce seat. In some cases, if employees only log in rarely, you might even consider Salesforce’s login-based licenses (a newer model where you pay per login rather than per named user).
- Multiple Small Apps (Citizen Development): Enterprises that encourage citizen development may end up with numerous small, custom apps for various niche purposes. For example, one team builds an asset tracking app, another builds a training feedback app. In this scenario, you can purchase a pool of Platform user licenses, allowing those users to access multiple apps. It’s a great fit because each user license provides access to all custom apps within the organization. You avoid the bloat of giving those business users full CRM licenses, yet they can leverage all the apps their team creates. Essentially, Platform licenses support innovation by enabling users to use and create custom solutions without incurring huge costs.
- Large-Scale Rollouts Without CRM Needs: Sometimes, companies roll out the Salesforce Platform as a general-purpose development platform across the whole org, beyond CRM. If you plan to deploy a Salesforce-based application to, say, 10,000 factory floor workers or 20,000 retail employees who just use that app for a specific process, platform licensing is the way to go. It dramatically lowers the per-user cost. These users get the benefit of your custom app, and you get the benefit of Salesforce’s infrastructure (security, mobile app, workflow, etc.), all while avoiding paying for CRM functionality no one uses in that context.
In all these scenarios, the common theme is using Salesforce as a platform, not as a CRM. Focus your spend on the features you need.
Many enterprises have saved millions by switching appropriate users to Platform licenses once they realized a large chunk of their user base never touched the CRM modules.
Read about When to Use Salesforce Platform Licenses vs Full CRM Licenses.
FAQ: Salesforce Custom App Licensing
When should I use Platform licenses instead of CRM?
Use Salesforce Platform (Force.com) licenses whenever a user does not need core CRM features (like sales or service modules). If the person will only be using custom apps or perhaps just viewing accounts/contacts and reports, a Platform license will cover them at a far lower cost. For example, if you’re granting access to an internal app for HR or an employee portal, Platform licenses are usually the smart choice. Save the full Sales/Service Cloud licenses for those users who genuinely require those CRM capabilities.
How do I decide between user-based and app-based licensing?
It depends on the number of apps and the number of users. If you have many different apps but relatively smaller user groups for each, a user-based license (per user) is more efficient – each user can access all needed apps with one license. On the other hand, if you have one or two very large-scale apps used by tons of people (and those people don’t use any other Salesforce apps), then an app-based licensing approach can yield cost savings. Essentially, if one app supports thousands of users, an app-based approach is usually cheaper; if one user requires multiple apps, consider a user-based approach. You can also mix both models to tailor the cost to each scenario.
Can I combine user- and app-based models in a single contract?
Yes, and in fact, you should consider it. Salesforce will allow you to purchase a combination of license types. In a single contract (or across your Salesforce agreement), you might have some users on full CRM licenses, some on Platform user licenses, and others on per-App licenses. Mixing models allows you to optimize costs – for example, purchase 100 platform user licenses for a set of power users who utilize several apps, and acquire 5,000 app-specific licenses for the one app everyone else uses. Just be sure to negotiate the details (and ensure you don’t double-pay for the same user on two licenses unnecessarily). A blended approach can give you the best of both worlds.
How do I reduce costs for Force.com licensing?
To reduce costs, focus on optimizing licenses and negotiating more favorable terms. First, right-size your license types – don’t pay for full Salesforce licenses for users who only need access to a custom app. Utilize cheaper Platform or app licenses wherever appropriate. Second, negotiate volume discounts and favorable terms: if you’re deploying widely, push for lower per-user pricing. Also negotiate flexibility (ability to drop unused licenses, as well as cap renewals as mentioned). Third, monitor usage – regularly audit which licenses are being used. If you find that you have paid-for licenses sitting idle, consider discussing downsizing options with Salesforce at renewal or repurposing them for other users. Finally, consider multi-year commitments or enterprise agreements only if they come with significant discounts and safeguards; otherwise, a yearly contract with the option to adjust may prove more cost-effective in the long term. In short, be proactive: the more planning and analysis you put into your licensing needs, the more leverage you have to eliminate waste and secure a better deal.
What’s the biggest mistake in custom app licensing?
The biggest mistake is over-licensing by default – in other words, buying expensive Salesforce CRM licenses for everyone when many users could thrive with a cheaper Platform license. This often happens out of habit or uncertainty, and it leads to huge, unnecessary costs. Another related mistake is not revisiting your license mix over time: businesses evolve, apps grow, and user counts change, but some companies let their Salesforce contract auto-renew without re-evaluating needs. That’s how you end up with shelfware and bloated spend. The takeaway: match the license to the user’s true needs, and review it periodically. Don’t pay Champagne prices for beer use-cases, so to speak. By avoiding this mistake, you ensure you’re getting full value out of every Salesforce license you buy.
Read more about our Salesforce Contract Negotiation Service.
