Recently, we’ve heard a lot of chatter from our customers about a new policy at Infusionsoft requiring the purchase of additional services to get started. At first I thought it was just an idle “add-on” – but their “Quick Start Bundle” is now a required service to get started. Now, I’ve said it before, I’ll say it again – Infusionsoft is one of the best CRM platforms out there for information marketers and small businesses seeking a one-stop-shop for their online CRM / sales / marketing management. But, the Quick Start Bundle in question runs the rather outrageous price of $2,000.00.
Yes, that’s the number “2″ with 3 “0″s after it.
Assuming most people buy in to the $299 / month package, that’s the equivalence of 6+ months of service – due up front at the time of purchase. This isn’t a modest price hurdle – this is a brick wall in the middle of the 405 freeway.
Looking a little deeper, the program that they’re offering is designed to help new customers get up and running with IS quickly, and includes “Success Coaching”, 2 Campaign Configurations, and “Flex Blocks” of additional training. As best I can tell, this is about 15 hours of coaching & support services (and honestly I think I’m being a little generous here) which puts the average hourly rate of the value they’re providing around $130/hr. Maybe MAYBE you could say you’re getting 20 hours of service, which is the modest rate of $100/hr. And that’s certainly an acceptable rate for high-level service and campaign management – but as a required service this seems pretty absurd. And here’s the crazy part – I’ve been to on-site training at Infusion. It’s great. They really can help you with your marketing campaigns and it’s ABSOLUTELY worth the investment. It just shouldn’t be required to get in the door.
Ultimately, here’s my problem with the offer: This feels like the victim is getting blamed for the crime. Namely, that Infusionsoft is so complex and the user interface is so unintuitive that they really believe this is a required value-add to the average new customer. However, as a member of the IS “cottage” community of developers and solutions providers, not only does this take away opportunity from our table, but it makes it remarkably difficult to justify sending customers to their door. No longer can a new business say “Yeah, $300 a month is a little pricey, but the features are well worth the investment” – now the argument is to take $2,300 out of pocket to get the ball rolling. In most instances, our customers turn to us to help them implement their technology solution, so now we’re forced to evaluate a whole range of alternatives.
I really do like Infusionsoft. From a development standpoint, their API is sound, their functionality (for instance, the ability to arbitrarily POST data to client sites or set up robust Follow Up Sequences) is great. But compare $2,300.00 with $99/month for 1ShoppingCart + $15/month for MailChimp + FREE for EventBrite and it gets a lot harder to say that new customers are getting the right bang for the buck.
When I look at things, here’s what I wished they had done: Raise prices 5% for ALL CUSTOMERS. Let’s just say (and I’m pulling these numbers out of thin air) they’ve got 7,000 customers paying an average of $300 / month… That means they’d be pulling down about $2.1 million / month… A 5% increase would amount to $15 per account, but would amount to an additional $105,000 of revenue per month. Which I’d argue could immediately go to paying someone a few grand to work on user interface and improving the obviousness of the user experience. Make things more obvious and intuitive and less cryptic, and suddenly users won’t NEED 15-20 hours of coaching to use their platform. It’ll just work.
We’ll keep pushing our clients to Infusionsoft, and we’ll keep supporting their technology as a service & solutions provider. But I just hope they knock this shit off – go back to letting people buy the service as it stands. Bump the price a little for everyone if you really want to invest in improving the interface and making working with the software easier for everyone. You’ll have customer love and a whole crop of new buyers jumping on board. </RANT>
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