How Much Should a Virtual Data Room Cost?

Today, virtual data rooms have become an integral part of mergers and acquisitions, and these solutions are actively used in many other processes, such as IPO and fundraising. While VDRs are popular with many companies around the world, for some entrepreneurs it can be a new experience and therefore they need to know some basic information before they start purchasing this online solution. One such piece of information is the data room pricing model-what pricing policies exist, and what is their approximate cost? More on that

Cost pricing principle for virtual data rooms?

Pricing for virtual data room services can vary widely. Some entrepreneurs may pay $500 a month, when others will have a price tag as high as $40,000. In addition, we can often hear cases of a company paying some incredible amount of money because of cost overruns and extended deadlines. Organizations often put up with these amounts, even though they could have avoided them. All because, they choose a pricing model that is unprofitable for them. Every company and its projects are unique, and virtual data room pricing models are very diverse. Therefore, entrepreneurs should take more time to study the pricing structure of the providers they choose, and match them with their own specifics. That way you’re guaranteed to choose a solution that works harmoniously with your infrastructure – you won’t overpay and can even calculate the approximate amount you’ll pay per month.

The most common pricing models and their costs

Below we highlight the main principles of pricing policies of virtual data room solutions providers:

  • Cost per page

This pricing model is considered to be the oldest, nevertheless some providers still use it. It is worth noting that providers then charge by the page and not by the document as a whole, so if one of your documents is 60 pages then you will be charged for each page. Depending on the provider and the scale of the project, the price can range from $0.40 to $0.85 per page. This type of fee will be unprofitable for large projects and large companies, but for smaller projects, it will be just right.

  • Cost per user

This type of fee involves providing a certain amount of space for users within the virtual data room, and for each additional user the provider will charge. Both the price and the number of user licenses vary, but it can be noted that on average, providers charge between $100 and $250 per admin user. Be sure to check how many users can be inside your potential VDR at no extra cost, unless you are planning some massive event like a fundraiser or merger and acquisition, then this type of fee may be in your favor.

  • Price for storage size

Some providers set a fee structure based on the number of gigabytes of storage requested. For example, some provide users with a certain amount of storage and charge a certain fee for each additional GB, while some charge by the GB consumed, with no fixed size. The cost per GB can be as high as $75, and if your project has relatively small text files, then this pricing model may work for you.

  • Fixed rate

Many modern providers offer several data plans to choose from, each with a specific set of features, but mostly offering unlimited users and storage. Companies can decide for themselves which of the plans will be more profitable for them, and will not overpay for those tools that they will not need. Usually the price of tariff plans varies from $400 to $2,000.