The Importance of Data Room Pricing Models

When choosing a virtual data room provider, the pricing model is among the most important factors. The cost of a VDR regardless of whether it’s per page, per project or a monthly flat rate is vital to ensure that deal teams can concentrate on due diligence and make the most of their investment in the company. Pricing models differ between providers, and this can cause some M&A professionals confused about what a particular service costs more or less than a different. This article explains how to navigate the pricing structures and features offered the importance of data room pricing models by different providers.

Some VDRs provide a set number of licenses at a fixed price. Some charge for every additional user that joins the dataroom. While this structure is ideal for small projects that have a set number of users, it doesn’t work for larger businesses who upload a lot of pages or documents every month.

Many vendors offer a per GB storage capacity pricing model. This is generally recommended for businesses who exchange tiny textual files like spreadsheets or PDFs. This pricing model is more expensive than others, but when you don’t need to share large video or audio recordings or images, it’s a great option.

Other vendors offer an affordable pricing model that has a fixed amount of users, projects, admins and storage capacity. It’s an excellent option for long-term projects, as it allows potential clients to know exactly what they will be paying for prior to signing up. Many vendors offer discounted or free pricing to customers who have long-term plans for usage.