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?