Can I not model product subscription revenue in Pipedrive?
Here is the scenario I am working with:
I am using Products to represent software licence seats. These come in different tiers:
- Gold-tier licence: $1000 / user / year
- Silver-tier licence: $750 / user / year
- Bronze-tier licence: $500 / user / year
Our customers typically commit to terms of 3-5 years up front, but the licence is billed annually (i.e. SaaS). So for example, a typical deal could be 250 Gold-tier user licenses for a term of four years, billed annually. This means:
- the annual licence fee paid is 250 users x $1000/user= $250,000
- the total contract value over the four-year term is $250k x 4 years = $1M
I have defined my Products, and when I add them to a Deal I can set the Duration to 4 years.
Unfortunately in the corresponding Revenue forecast, Pipedrive insists on showing the total contract value as if it is being paid all at once on the closing date (i.e. the annual licence cost x 3-5 years). Why can't I represent this as annual recurring revenue?
The only option that I can see to model the revenue accurately is to use the the "Subscription" and specify that there will be four annual payments of $250k each... but in order to do this and have the Deal value be accurate, I have to delete all of the Products on the Deal. Losing the ability to use the Products feature is a shame because then I lose the ability to build reports of sales by product.
Am I missing something? Or can this scenario simply not be handled by Pipedrive?
Answers
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I would suggest considering Coupler or Flatly to build a data pipeline to visualize this in a BI or reporting tool like Tableau or Looker Studio. You can read more about building a data pipeline for Pipedrive in this article.
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I am dealing with the exact scenario Brad is dealing with. Any help is much appreciated.
There are two needs for management and investor reporting and for process support (i.e., revenue recognition and invoicing):
Total deal value (TDV) and annual recurring revenue (ARR).
And, apart from these, is a time-based forecast of when the TDV rolls out to the income statement.
These are things the PipeDrive folks need to work on.
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I had a demo with a rep for this product and it was not what we need. He recommended Osmos.io, which is a data intake and management tool. More what we may need. The term "model" data was perhaps the source of confusion. I need, and I think Brad G needs, the ability to pull data from within PipeDrive and transfer it to downstream systems to work with the data to complete processes such as revenue recognition on a multi-year contract or invoicing on a one-time or repeated basis for the same multi-year contract.
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