What is the best free CRM for your small business?

Do you want to get a “free” CRM application and want to know what’s best? I am often asked this question. And my answer: none. Don’t get a “free” CRM application.

I don’t like free CRM software applications and below are my reasons why.

(Caveat: I make a living selling and providing services for some paid CRM applications. Please keep this fact in mind as you read further.)

They represent a security risk.

If you search the Internet, you will find numerous lists of “free” CRMs. Many of these lists only include well-known subscription CRM platforms (e.g. Zoho, VTiger, Pipedrive) that offer watered down versions of their paid products. If you search further, you will find numerous other free offers from companies such as Snov, Flowlu, EspoCRM, Raynet and eWay. Be careful. Snov and Espo come from Ukraine. Flowlu is Russian. Raynet and eQayj are Czech.

That doesn’t mean I’m xenophobic – okay, maybe it’s a little – but I would be very concerned about my company’s data and in a “free” system that I rely on to run my company if that data under the auspices of… are an overseas software company. This is not to say that all foreign companies are not safe. Zoho and VTiger are based in India. Pipedrive is based in Estonia. These companies are well established and I am sure they have good security. But with other “free” CRM systems, how do you know who has access to your data and what it is used for? How do you know how safe your data is from an attack? What recourse do you have if something happens? Popular apps like CamScanner, CCleaner and VidMate – all made abroad – have stories of malware and Trojans stealing data. I’m sure there are many unreported stories. Be careful.

Free CRM applications generally offer few support options.

I’ve found that the vast majority of companies that produce free CRM software are very small. Free software doesn’t offer much support. They don’t have a big community. They don’t host conferences. They do not provide any training. They have no partners, integrators or consultants. You may be able to find someone on Reddit or elsewhere who can help you with questions, but good luck with that. When you use a free software platform, you are largely on your own. You get what you pay for.

There is a significant lack of features.

Free software applications – even the free offerings from mainstream providers like Zoho, Insightly and Nimble – lack many features. Take Zoho CRM (which my company sells) for example. The free version of Zoho only allows up to three users, has significantly less storage space, limited reporting and analytics, and lacks workflows, advanced customizations, and integration features. It’s pretty much WYSIWYG. You’re almost better off with a spreadsheet. Free versions are never good enough. And that is intentional. Their manufacturers want you to upgrade to paid services.

These applications can disappear… with your data.

Free software platforms are often developed by very small organizations that are typically under-funded. When a company can no longer pay its bills, it gives up or discontinues products. This has been the case with previous CRM offerings such as Highrise, Inigral and Relenta, and these are the ones we know about. If a company does not have sufficient financial resources, it cannot upgrade, add new technologies and increase security. What happens if you wake up one morning and the URL to your CRM application – where all your data is stored – suddenly no longer exists? You have no recourse. You have no options.

There is no scaling.

As your business grows, you need more users, more features, and a larger database. Most free CRM software applications will disappoint. They simply don’t scale. If your business is growth-oriented, your best bet is to purchase free software by taking advantage of an offering from a mainstream software company so that you can upgrade to the paid versions as you grow and not lose your data in the process. Otherwise, you’ll be stuck and potentially have to pay a lot more to migrate from one system to a new one.

There is no added value.

Let’s say you’re interested in buying a business. Let’s say a business owner tells you that all of their customers, prospects, and business community are stored in their CRM systems, and you’re excited because this data is very valuable. But then they tell you it’s an obscure, free CRM software platform and not a well-known brand. That will be a problem. You’re probably unfamiliar with this platform and are eager to migrate it to another platform – perhaps your own. But you’ll struggle if the platform doesn’t offer the right tools and support, which – let’s face it – most free platforms don’t. This will be reflected in the price you are willing to pay for this data. If you are on the other end of this transaction, be prepared to receive less money.

They can potentially harm your recruiting.

Let’s say you want to hire an experienced sales rep or sales manager and they ask you which CRM you use. Most likely they are used to using and hearing about reputable platforms. How do they react when they find out you are using “free” software? What do you think of your sales team? You don’t even pay to use their core tool? That’s not a good message for potential (and current) talent, is it?

Finally: Free CRM software is a marketing plan in disguise.

Who does something for free? There’s always a catch. A limitation. A lack of features. A reason to force you to upgrade to a paid version. Or buy another software. Or inundate you with an avalanche of advertising. If you think you’re getting business by using a “free” CRM application, then you’re probably the type of person who thinks the casino in Vegas also wants you to win money.

My advice: you get what you pay for. Good, mainstream CRM applications really aren’t that expensive, usually around $20-$30 per month per user for a decent version. Is that too much to ask for a system that can generate revenue and increase the value of your business? I think spending a few hundred dollars a year isn’t a high price to pay considering what you get – and keep – with a more reliable and safer choice.