What Is the Average Data Room Pricing Structure?

The remuneration structure for VDR developers varies. In addition, they follow completely different online data room software pricing models. If you don’t know the pricing structure, you can have significant discrepancies between the original budget and the final invoice.

Why Do You Need Virtual Data Rooms?

Initially, online data room programs were designed as an alternative to physical data rooms for M&A due diligence. Before the spread of Internet access, the work of potential participants in the data transaction looked like this:

  1. The seller had to allocate or even rent premises. There, he/she put folders with paper files. So, he/she lost profit from the misuse of the premises as an expense.
  2. There was some kind of a schedule for visiting the physical room as well as working with documents for would-be purchasers (bidders), which, with their significant number, increased the transaction time.
  3. If the bidders were from another place, their representatives went on a business trip, spending lots of time on the road and money on travel allowances.

The e-data room solution assists in solving the problem with time, price, and ease of access to documents. Nowadays, online data rooms operate with the activities of enterprises in other areas. For instance, they help to provide confidential information to partners of investment funds. In other words, wherever it is needed to provide access to sensitive data for a certain time to a certain circle of users who may be from a friend thousands of miles away.

Prices for Virtual Data Rooms

In terms of pricing, there are Internet information room solutions that charge a flat amount combined with usage fees. Other data room software solutions charge only for the number of pages added to their e-data room system. Typically, the cost of a VDR is determined by one or more of the following factors:

Per Page

The majority of common developers stick to a page-by-page pricing model. So, depending on the scale of the project, they usually charge from $0.40 to $0.85 per page. This pricing structure can seem lucrative for smaller companies with a clear or fixed number of files. Nevertheless, for larger organizations, this structure can lead to large invoices as well as cost overruns.

Per Customer

Generally, virtual data rooms cost between $100 and $250 per admin user. In any case, before you decide to choose a data room provider, be sure to pay attention to how many users can fit in a room at no additional charge.

Some programs provide their clients with a certain number of user licenses. They also charge extra for each additional user. At the same time, the number of customers provided and the surplus price vary greatly depending on the selected software developer.

Storage Capacity

What matter here is that e-data room storage constitutes another way some vendors determine data room pricing structure. It’s worth noting that some providers set a cost structure based on the number of gigabytes a program uses. Others may allow a certain amount of GB or provide a range and charge for excess if the need arises. A surplus can cost up to $75 per GB. This can be a good value for money project with relatively small text file sizes.

Fixed Monthly Fee

Some developers charge a fixed monthly fee. These plans include some data, unlimited pages, and users, and cost between $400 and $1,000 per month. Suppliers that charge a flat monthly fee allow businesses to save money and avoid high fees for overspending. So, they can focus on what is more profitable for their project.