“How much does a virtual data room cost or should cost” is a difficult question to answer in one word.
Today, virtual data room providers offer high levels of flexibility in their pricing plans. Yet, many users are overpaying for data room services because they adopt pricing options that unknowingly make them pay more than they should.
So, how to avoid overpaying for virtual data rooms? If you are stuck on which pricing model to choose, here is a detailed data room prices overview.
Further in this post, we will discuss:
- What are the most common data room software pricing models?
- How much does online data room software cost in 2022?
- What are the most suitable data room pricing frameworks?
4 most common virtual data room pricing models
1. Per-user pricing
In the per-user pricing model, the virtual data room providers either charge you for every user you add to the data room or a fixed number of users in the mentioned price. Every user added after that limit will be charged by the service provider. Moreover, the total data storage space in the data room is either specified for every user or all users combined.
Therefore, make sure you ask the vendor how many users can be added to the VDR without charging extra.
2. Per-page pricing
Per-page or per-document pricing model is one of the most common pricing options offered by data room vendors. Service providers that follow per-page pricing charge you for every page you upload in the VDR. It is important to note that you will be charged per page, not per document. For example, if a document has 100 pages, you will pay for 100 pages.
3. Storage size pricing
Many virtual data room vendors charge their customers based on the data room storage they use. There are further variations in this pricing scheme. For example, some vendors charge for every gigabyte (GB) consumed by the users, while others may provide a fixed (maximum limit) number of GBs and will charge extra if you cross that limit.
4. Flat monthly fee
A large number of virtual data room providers also offer a flat monthly fee pricing scheme. These types of pricing plans usually provide fixed or unlimited data storage and unlimited number of users.
Moreover, data room vendors offer multiple packages for small businesses, enterprises, and corporations. The amount is either billed monthly or yearly. However, make sure that there are no hidden or additional expenses in monthly charges.
How much does online data room software cost in 2022?
How much a virtual data room costs depends on which pricing plan you choose.
Unfortunately, many users don’t understand how choosing an unsuitable VDR pricing model can cost them. It may come as a huge surprise to you that some M&A transactions conducted on virtual data rooms cost more than $100,000. While on average, an M&A deal normally costs between $20,000 to $40,000.
Here is what different pricing models can cost you.
- Per-page. Depending on the nature or scope of your project, you can expect $0.40 to $1 per page.
- Per user. Data room vendors practicing the per-user pricing model charge between $100 to $250/user/month.
- Storage size. The cost of this pricing model depends on the number of GBs offered by the vendor in a package. However, you can expect to pay up to $75 per GB.
- Flat monthly fee. Flat monthly charges totally depend on the number of features, users, and data storage allowed by the providers. On average, this model may cost you between $400 to $2000 per month.
Which data room pricing model should you choose?
Again, it depends on what you need the data room software for. Here are some common pricing frameworks and what they are suitable for.
- The per-page pricing model is useful for smaller projects where there isn’t a lot of data sharing involved, and you know the exact number of pages to be stored or shared during the project.
- Per user pricing model is useful in situations when you have a limited or small number of users. For example, freelancers, small tech firms, or service providers will find this pricing model more effective. It can be useful for one-time transactions such as M&As, fundraising, etc.
- Storage size-based pricing options are useful for temporary use. For example, they are suitable for small-scale M&As or similar transactions where you don’t need a lot of storage space.
- The flat monthly fee model is arguably the most suitable pricing model for long-term usage, especially for small and medium-sized businesses, corporations, and enterprises.
Here are some of the best virtual data room providers in terms of flexible pricing.
- iDeals virtual data rooms
- Ansarada virtual data rooms
- Digify data rooms
- Box data room
- Google Workspace
Pricing should be an important element to consider when you compare virtual data rooms before subscribing to the right one. Choosing the right pricing plan that suits your data room usage will make sure your data room is a cost-effective solution.