I’m going to say something that might get me in trouble. Most of the advice you hear about picking a CRM is flat-out wrong. Especially for startups. I’ve seen it dozens of times. A founder raises a seed round, and the first thing their new board member says is, “You need to get on Salesforce. It’s the industry standard.”
That’s when I have to step in and call bullshit.
I’ve built and sold two companies. I’ve invested in over 200 more, including some of the biggest names in AI like Anthropic and OpenAI. And I can tell you that for 99% of early-stage companies, buying a big-name CRM is like strapping a jet engine to a bicycle. It’s expensive, it’s complicated, and you’re going to crash.
The problem is that the CRM market is a sea of sameness. Everyone copies everyone else. They all promise a “360-degree view of the customer,” but what they deliver is a 360-degree view of a migraine. Bloated feature sets, insane pricing tiers, and an implementation process that requires a team of consultants.
I’m tired of it. So I’m going to give you my unfiltered list of the most overrated CRMs on the market and what you, as a founder or operator, should be using instead.
1. Salesforce
Let's start with the big one. Salesforce is the 800-pound gorilla of the CRM world. And for a Fortune 500 company with a dedicated team of admins, maybe it makes sense. But for a startup? It's suicide.
I once advised a startup that spent $50,000 on Salesforce implementation. Six months later, the sales team was still using spreadsheets because the CRM was too clunky. That’s $50,000 they could have spent on hiring another engineer or running a marketing campaign. Instead, they lit it on fire.
Salesforce is a platform you build on, not a tool you use out of the box. It’s infinitely customizable, which is a curse, not a blessing. You’ll spend more time customizing it than you will selling.
What to use instead: Close or Folk.
- Close is built for one thing: making sales teams more productive. It has calling, emailing, and texting built-in. No bloat. Just pure, unadulterated sales efficiency.
- Folk is a newer player that's rethinking the CRM from the ground up. It's more like a collaborative workspace for your customer relationships, built on a foundation of smart contact data enrichment. It's flexible, beautiful, and a joy to use.
2. HubSpot
HubSpot is the king of inbound marketing. Their blog is legendary. Their free tools are a great way to get started. But their CRM is a classic bait-and-switch.
The free version is just good enough to get you hooked. But as soon as you need any real functionality, you’re forced onto their expensive paid plans. And those plans are a maze of complexity. Sales Hub, Marketing Hub, Service Hub… before you know it, you’re paying thousands of dollars a month for features you don’t use.
My biggest beef with HubSpot is that it tries to be everything to everyone. It’s a CRM, a marketing automation platform, a CMS, a help desk… and it’s mediocre at all of them. Jack of all trades, master of none.
What to use instead: Attio.
Attio is what HubSpot should have been. It's a data-driven CRM that's built for the modern stack. It automatically syncs with your email, calendar, and other tools to build a complete picture of your customer relationships. It's powerful, flexible, and doesn't require a PhD to figure out.
3. Zoho CRM
Zoho is the budget option. They offer a huge suite of products for a very low price. And for some businesses, that’s a great deal. But when it comes to their CRM, you get what you pay for.
The interface is dated, the user experience is clunky, and the integrations are a nightmare. I’ve seen more than one startup get bogged down trying to make Zoho work. They spend so much time fighting the software that they forget to talk to their customers.
Don't let the price tag fool you. The total cost of ownership for a cheap, clunky CRM is much higher than you think.
What to use instead: Pipedrive.
Pipedrive is the anti-Zoho. It’s a simple, visual CRM that’s designed to help you close deals. The pipeline view is best-in-class, and it’s incredibly easy to use. It’s not the cheapest option, but it’s worth every penny.
4. Microsoft Dynamics 365
If you're a big enterprise that runs on Microsoft everything, then maybe Dynamics 365 makes sense. For everyone else, it's a non-starter.
It's a classic Microsoft product: powerful, but incredibly complex and unintuitive. It feels like it was designed by a committee of engineers who have never actually sold anything. The integration with Outlook is nice, but that's about it.
What to use instead: Copper.
Copper is the CRM for Google Workspace users. It lives inside your Gmail, and it's the most seamless CRM experience I've ever seen. It automatically captures your contacts, emails, and files. If you live in Gmail, you need to try Copper.
5. NetSuite CRM
NetSuite is an ERP first, and a CRM second. And it shows. The CRM module feels like an afterthought. It's clunky, it's ugly, and it's missing basic features that you'd expect from a modern CRM.
If you're already using NetSuite for your financials, I can see the temptation to use their CRM as well. But don't do it. You'll regret it.
What to use instead: Insightly.
Insightly is a great all-in-one CRM for small businesses. It has a strong focus on project management, which makes it a great fit for companies that have a complex sales process. It's also very affordable.
6. SAP Sales Cloud
SAP is another enterprise behemoth that has no business being in a startup's tech stack. Their CRM is powerful, but it's also incredibly expensive and complex. You need a team of consultants just to get it up and running.
Unless you're a multi-billion dollar corporation, stay away from SAP.
What to use instead: Freshworks CRM.
Freshworks offers a suite of products that are designed for small and medium-sized businesses. Their CRM is easy to use, affordable, and has all the features you need to get started.
7. SugarCRM
SugarCRM was one of the original open-source CRMs. But over the years, it's become more and more of a commercial product. And it's lost its way.
The on-premise version is still an option for companies that want to host their own CRM. But the cloud version is overpriced and underwhelming. There are better open-source options out there.
What to use instead: Twenty or Openkoda.
- Twenty is a modern, open-source CRM that's built for the 21st century. It's beautiful, it's customizable, and it's backed by a strong community.
- Openkoda is another open-source alternative to Salesforce. It's still early, but it's very promising.
8. Keap (formerly Infusionsoft)
Keap has been around forever. And it has a very loyal following among small businesses and solopreneurs. But it's also a very dated product.
The campaign builder is powerful, but it's also very clunky and unintuitive. And the CRM itself is very basic. There are better, more modern options out there for marketing automation.
What to use instead: EngageBay.
EngageBay is an all-in-one marketing, sales, and support platform for startups. It's a great alternative to Keap, and it's much more affordable.
9. Agile CRM
Agile CRM is another all-in-one platform that tries to do too much. It has CRM, marketing automation, and help desk features. But none of them are best-in-class.
The free plan is very generous, but the paid plans are a bit pricey for what you get. And the user interface is a bit cluttered.
What to use instead: Nutshell.
Nutshell is a simple, no-nonsense CRM that's built for small businesses. It's easy to use, it's affordable, and it has great support. It's a great choice for teams that are just getting started with CRM.
How to Choose the Right CRM
So how do you choose the right CRM for your business? Here are a few things to keep in mind:
- Focus on your workflow, not features. Don't get distracted by a long list of features. Instead, think about your sales process and choose a CRM that will help you execute it more efficiently.
- Start simple. You can always upgrade to a more powerful CRM later. But it's very hard to downgrade from a complex one. Start with a simple, easy-to-use CRM that you can get up and running in a day.
- Prioritize user experience. If your sales team doesn't like using the CRM, they won't use it. It's that simple. Choose a CRM that is beautiful, intuitive, and a joy to use.
- Think about integrations. Your CRM should be the hub of your customer data. Make sure it integrates with the other tools you use, like your email, calendar, and marketing automation platform.
Stop Listening to the Gurus
The most important thing is to think for yourself. Don't just buy a CRM because some guru told you to. Do your own research. Talk to other founders. And choose a CRM that's right for your business.
Your CRM is one of the most important tools in your stack. But it's also one of the most overhyped and overpriced. Don't be a sucker. Choose wisely.
Frequently Asked Questions
Which option is best for startups?
It depends on your stage, budget, and specific needs. Early-stage startups should prioritize flexibility and low cost. Growth-stage companies can afford to optimize for performance and scalability. There's no universal answer.
Can I switch later if I make the wrong choice?
In most cases, yes. The switching cost is usually lower than people fear. The bigger risk is analysis paralysis, spending months evaluating options instead of picking one and learning from real usage.
What factors matter most in this comparison?
For most founders, the three factors that matter most are: total cost of ownership, ease of implementation, and how well it integrates with your existing workflow. Features are important but often overweighted in decision-making.