One of the hottest new technologies under the CRM umbrella is Web conferencing. With a larger percentage of sales meetings, customer calls, and sales training moving online, the price of the conferencing service is becoming an increasingly important element in the overall cost of sales. Here are some guidelines to help you make the most cost-effective decision:

Step 1. Select the Right Pricing Model
Web conferencing typically is priced either on a software user-license basis (pay per seat) or per minute of usage (pay per use). With pay per use, you pay only for the time you and your attendees spend in Web conferences. With pay per seat, you pay a flat monthly fee for a certain number of concurrent users (“seats”), which you can use as you choose. Additional considerations include:

• Minimum number of seats. Most vendors require you to purchase a minimum of five seats in a pay-per-seat license model.

• Contract length. Most pay-per-seat plans require a term commitment ranging from three months to one year.

• Expected usage. If you are beginning to use Web conferencing for the first time, you will most likely not make full use of your pay-per-seat plan in the first month or two, but you will pay the full amount anyway.

• Potential limitations. With pay per seat, you are obligated to pay if you later determine that the technology does not meet your requirements. With pay per use, you have more flexibility to make sure the technology meets your needs in a live environment and your costs grow with your actual usage.

• Setup fees. Many vendors charge a setup fee for pay-per-seat pricing (usually ranging from $1,000 – $4,000). Amortized over the first year of the service, these fees increase the monthly pay-per-seat cost. By contrast, very few pay-per-use plans require a setup fee.

• Overage charges. In a pay-per-seat model, when the number of concurrent users exceeds the number of seat licenses you purchased, your vendors will apply an overage charge that’s more expensive than your average cost per seat. Pay-per-use plans let you include as many attendees as you want at the same per-minute price.

Step 2. Select the Right Feature Set At the “brochure level” most Web conferencing systems have identical features and functionality. The real difference between solutions comes down to the reliability, usability, and functionality of each. Ask to demo the service as both a participant and meeting host. In each scenario, test each of the features to see how well they work and how easy they are to use. Ask the vendor if free trials are available. Here are some potential “feature” pitfalls:

• Multimedia capability. Some Web conferencing solutions only support online presentations, while others offer full-featured packages that include polling, chatting, application-sharing, white boarding, and group Web surfing.

• Playback capability. Do you seek the ability to record the event for playback? Can you transfer files within the meeting? If so, are they included in the playback?

• Security concerns. Depending on the audience and the information being shared, security might be a concern. And make sure the service works with corporate firewalls. If you are meeting or presenting to individuals at business locations, make sure the service can tunnel through multiple Internet ports in the event a primary port is blocked by a firewall.

Step 3. Select the Right Support Level
There are two types of customer support that you should consider:

• Real-time technical support. Attendees will inevitably need help from time to time joining your meeting. And, if you’re presenting to clients and prospects who need help joining your conference, you cannot afford to get voice mail when contacting technical support. Make sure your vendor has live support available, at least during business hours, without waiting on hold a long time.

• Pre-conference training and consultation. Is training and meeting planning support available? Is there an extra fee? Is there a telephone number available so that you can contact a support person or is only email support offered?

The above is based upon information provided by Curtis O’Keefe, vice president of Communique, a provider of audio and Web conferencing solutions headquartered in McLean, VA.