MI Solutions
Insights/Vendor guides
Vendor guides

Slack License Optimization: Inactive Members and Plan Choice

How Slack bills for members, how its fair billing policy credits inactive members after 28 days, and how to choose the right plan and keep costs predictable.

By the MI Solutions SAM team8 min read2 exhibits

Slack is unusual among SaaS vendors: under its fair billing policy, it does not charge for members who are not using the product. A member is considered inactive if they have not used Slack for more than 28 days, and the workspace receives a prorated credit for the unused portion of the billing period. That makes Slack billing more forgiving than most, but it does not remove the need to manage it.

How fair billing works

Exhibit 1
Under fair billing, inactive members are credited, not chargedMembers by billing status in one month (illustrative workspace of 2,000)Active, billedInactive 28+ days, creditedDeactivatedMembers1,640290Illustrative member counts.Source: Slack, 'Slack's fair billing policy' (inactivity defined as 28 days without use).

Credits are calculated pro rata for the remaining days of the billing period and applied to future charges, such as new members or the next renewal.

Exhibit 2
A member who stops using Slack is credited after 28 daysOne member over a quarter on an annual plan, illustrativeSTILL BILLEDINACTIVE: CREDITED0153045607590DaysLast activityMember stops using SlackMarked inactiveAfter 28 days without useCredit calculatedProrated for theremaining periodCredit appliedTo new members or therenewal

Why it still needs managing

Fair billing removes the most common SaaS waste, paying for people who do not use the product, but not all of it:

01Plan choice

A higher plan for everyone costs more per active member, whether or not its features are used.

02Add-ons and enterprise features

Priced separately and not credited for inactivity.

03Committed volume

Annual commitments at renewal should reflect active members, not all members.

04Security

Inactive accounts are still accounts. Leavers should be deactivated, whatever the billing.

Choosing the plan

The plan decision is where most Slack cost is set. Ask which plan-level features are actually used, and by how many people:

How MI One helps

Frequently asked questions

Do we get cash back for inactive members?

No. Credits apply to future payments and are not refundable.

Does fair billing apply to every plan?

Check Slack's current policy for your plan and contract.

Should we still run a reclamation process for Slack?

A lighter one: deactivate leavers for security, and use activity data to size renewals and plan choice.


Sources

See where your software budget goes

Bring your five largest vendors to a 30-minute call. Our SAM experts will show you where the savings usually hide, and how fast MI One can surface them.