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HubSpot vs Custom Software: The Growing Company's Dilemma

HubSpot is the best all-in-one CRM until the "all" starts costing more than the parts. Here's when custom becomes the smarter investment.

HubSpot's value proposition is convenience: one platform for CRM, marketing, sales, and service. That's genuinely valuable for early-stage companies who don't want to cobble together multiple tools.

The question is whether that convenience is worth $30,000-100,000/year when purpose-built alternatives exist. For growing companies, the answer is increasingly "no."

Where HubSpot Wins

Give credit where due:

All-in-One Convenience

CRM + marketing + sales + service in one login. Genuine time savings for small teams.

Free Tier

HubSpot Free is the best free CRM available. No strings attached for basic contact management.

Content + CRM Integration

Blog, landing pages, and forms that feed directly into CRM. Seamless for inbound marketing.

Academy and Community

Excellent educational content and a large user community for support.

Where Custom Wins

For growing companies:

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Predictable Pricing

No per-contact pricing. No tier jumps. Your costs don't spike when your business succeeds.

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Unlimited Customization

Custom objects, fields, and workflows without tier restrictions. Build exactly what you need.

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Better Email Economics

Send 100K emails/month via SendGrid for ~$50 vs. $1,200+/month on HubSpot Marketing Pro.

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Full Data Ownership

Your data, your infrastructure, your rules. No vendor dependency.

The Price Divergence Over Time

HubSpot costs scale with your team size and contact count. Custom costs are relatively fixed after the initial build.

Year 1: HubSpot ($30K) vs Custom ($70K). HubSpot wins on upfront cost.

Year 2: HubSpot ($40K — team grew, contacts grew) vs Custom ($15K — hosting + maintenance). Gap narrows.

Year 3: HubSpot ($55K — more contacts, considering Enterprise) vs Custom ($15K). Custom now significantly cheaper.

Year 5: HubSpot ($80K+) vs Custom ($15K). The gap is enormous. And you own the custom system outright.

The "Good Enough" Trap

HubSpot is "good enough" at everything. Good enough CRM, good enough email, good enough automation, good enough reporting. This is valuable when you're small and need convenience.

The trap: "good enough" means you're never getting great at anything. Your competitors with purpose-built tools have better email deliverability, faster CRM workflows, more insightful reporting, and more powerful automation. The convenience premium costs more than just money — it costs competitive advantage.

Hubspot vs Custom Software

FeatureHubspotCustom Software
Pricing modelPer-user + per-contact tiersOne-time build + flat hosting
Year 1 cost (30 users, 50K contacts)~$30,000-45,000~$65,000-95,000
Year 3 cost (50 users, 100K contacts)~$55,000-80,000/year~$15,000/year
Custom objectsEnterprise only ($1,500/mo)Unlimited (included)
Workflow limits300-1,000 depending on tierUnlimited
Email cost (100K sends/mo)~$1,200+/mo (contact-based)~$50-100/mo (send-based)
Custom reportingProfessional tier requiredIncluded
Feature accessGated by pricing tierAll features available
Contract termsAnnual (Pro/Enterprise)None (you own the code)

Frequently Asked Questions

Is HubSpot really that expensive?
HubSpot Free is genuinely free. But companies needing Professional-tier features across Marketing + Sales + Service hubs easily spend $30,000-100,000/year. The per-contact pricing in Marketing Hub is particularly aggressive — 100K contacts can cost $2,000+/month on its own.
Doesn't all-in-one save time vs multiple tools?
It does for small teams. But "all-in-one" also means you're stuck with HubSpot's version of every feature. If their email builder is mediocre, if their reporting is limited, if their automation is constrained — you can't swap out individual pieces. Custom software lets you use the best tool for each job.
What about HubSpot's partner ecosystem?
HubSpot has excellent agencies and consultants. But you need them because HubSpot is complex enough to require expert help. A custom CRM built for your specific workflow shouldn't require ongoing consultant fees.
Should I stay on HubSpot Free and build custom for everything else?
This is a smart hybrid approach. Use HubSpot Free for basic contact management and build custom tools for marketing automation, reporting, and advanced CRM features. You get the convenience of HubSpot's interface for simple tasks without the pricing tiers.

Want to See the Real Numbers?

Book a free consultation. We'll calculate your projected HubSpot costs over 3 years and compare to a custom build. The numbers usually speak for themselves.

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