CRM Costs, Pricing Models and 2026 Rules
Contact-based CRM marketing pricing: why your bill grows with your list
How CRM and email marketing tools price by stored or marketing contacts, how tier steps work, and how cleaning your list and Spam Act consent records keep costs down.
Many CRM suites price their email marketing by contacts, not by users: you pay for a tier such as "up to 2,000 marketing contacts", and when your list passes the limit you move to the next, more expensive tier. That means your marketing cost can grow faster than your team, even if nobody new logs in. The two ways to control it are to understand exactly which contacts count, and to keep only contacts you have consent to email and who still engage. Good list hygiene saves money and also supports your obligations under the Spam Act 2003.
This guide is part of the best-fit CRM overview. All prices are illustrative.
Which contacts count?
Vendors define billable contacts differently. Read the definition in the pricing terms, because it decides your bill.
| Definition (varies by vendor) | What it means | Effect on cost |
|---|---|---|
| All stored contacts | Every contact record in the database counts | Old leads and suppliers you never email still cost money |
| Marketing contacts | Only contacts you flag as eligible for marketing emails count | You can keep others for sales without paying marketing rates |
| Active or subscribed contacts | Contacts who have not unsubscribed or bounced | Unsubscribes stop costing once processed |
| Emails sent | Pricing by monthly send volume, sometimes with a contact cap | Frequent campaigns cost more |
Some products that combine a CRM with marketing tools use the "marketing contacts" approach, letting you store many contacts but pay only for those you market to. Others count everything. HubSpot, for example, is widely known for its marketing-contact model; check its own current pricing terms for how it applies today. Other vendors use different rules, so never assume.
How tier steps work
Contact tiers are usually steps, not a smooth per-contact price. Crossing a step by one contact can move the whole account to the next price.
Illustrative tier table (not a vendor price):
| Marketing contacts | Monthly marketing price (illustrative) |
|---|---|
| Up to 1,000 | $30 |
| Up to 2,500 | $70 |
| Up to 5,000 | $140 |
| Up to 10,000 | $260 |
Illustrative example. A homewares retailer has 2,350 marketing contacts and pays the $70 tier: $840 a year. After a summer competition it adds 400 new contacts, reaching 2,750, and the account moves to the $140 tier: $1,680 a year, an increase of $840 for 400 contacts, or $2.10 per new contact a year. If 300 of the existing contacts have not opened an email in two years and are suppressed or removed, the list drops to 2,450 and the account stays in the $70 tier.
Some vendors move you up automatically when you cross a limit; others charge overage or pause sending. On annual plans, an automatic step-up may apply for the rest of the term and may not be reversible until renewal. Ask how downgrades work.
Cleaning your list, lawfully
Cleaning a list is not just deleting records. It should follow a clear rule you can explain.
- Remove duplicates so the same person is not counted twice.
- Suppress hard bounces and invalid addresses.
- Suppress unsubscribes across every tool that sends messages.
- Review contacts with no consent record. Under the Spam Act, you need consent to send commercial electronic messages, and you bear the burden of proving it. If you cannot show express or inferred consent, do not market to them.
- Re-permission or retire inactive contacts. A single, compliant re-engagement message to recent customers can confirm interest; after that, stop marketing to non-responders.
- Keep sales-only contacts as non-marketing if your vendor allows it.
Remember that under the Spam Act an unsubscribe request must be actioned within 5 working days, and the unsubscribe facility in each message must keep working for at least 30 days after the message is sent. If your CRM and a separate email tool both send messages, unsubscribes must sync between them. See the Spam Act and Do Not Call guide.
If your business is covered by the Privacy Act, APP 7 also requires a simple way to opt out of direct marketing, and APP 11 requires you to destroy or de-identify personal information you no longer need. Note that APP 7 does not apply to the extent the Spam Act or the Do Not Call Register Act applies. See the Privacy Act guide.
Budgeting for list growth
Project your marketing-contact count over three years, not just today.
Illustrative projection:
| Year | Contacts at start | Net growth after cleaning | Tier (illustrative) | Annual cost |
|---|---|---|---|---|
| 1 | 1,800 | +500 | Up to 2,500 ($70) | $840 |
| 2 | 2,300 | +600 | Up to 5,000 ($140) | $1,680 |
| 3 | 2,900 | +700 | Up to 5,000 ($140) | $1,680 |
Over three years the marketing component costs $840 + $1,680 + $1,680 = $4,200, plus any renewal uplift on the tier price itself. Use the renewal uplift calculator with the tier step entered as "other new annual charges".
Alternatives to compare
- Separate email marketing tool priced by sends or contacts, integrated with the CRM. Often cheaper for simple newsletters, but you must keep unsubscribes in sync.
- Sales sequences sent one-to-one from the CRM, priced per seat. Suits B2B follow-ups; they are still commercial messages under the Spam Act if they promote your goods or services.
- SMS marketing priced per message. Note the SMS Sender ID Register: since 1 July 2026, messages sent with an unregistered alphanumeric sender name show as "Unverified". Check current ACMA guidance if you send SMS using your business name.
Frequently asked questions
Do I pay for contacts who unsubscribed?
It depends on the vendor's definition. Some count all stored records; others stop counting unsubscribed or non-marketing contacts. Read the pricing terms.
Can I buy a list to grow quickly?
Buying lists creates consent problems under the Spam Act, can make you a trader in personal information under the Privacy Act, and adds contacts that cost money and rarely engage. Avoid it.
Should I delete old contacts?
Keep what you need for legal, tax or warranty reasons, and stop marketing to contacts without consent. Your accountant can confirm record-keeping periods for business records.
What if I go over the limit mid-year?
Ask in advance whether the vendor charges overage, moves you up for the rest of the term, or pauses sends.
Sources
- Australian Communications and Media Authority — Spam Act consent and unsubscribe rules, SMS Sender ID Register
- Office of the Australian Information Commissioner — APP 7 direct marketing and APP 11 security and destruction
- Federal Register of Legislation — Spam Act 2003 and Privacy Act 1988
- Australian Competition and Consumer Commission — unfair contract terms if tier changes are imposed unfairly
