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Developer Labs: from rising software costs to an owned enrichment service

An owned software stack and credit-based enrichment, built by Twenty Three Systems for Developer Labs.

Custom softwareClient self-serviceMonthly enrichment credits

The challenge

Per-seat software charges were making the sales stack increasingly expensive. Developer Labs was also paying to enrich client data without a clear usage boundary: clients could assume every contact would be enriched. The business needed to reduce recurring costs and put control around enrichment usage.

The approach

Developer Labs hired Twenty Three Systems to build software that replaced its costliest subscription-based tools. Instead of paying for open-ended enrichment on behalf of clients, it created a self-service system where clients could enrich their own contacts and customer records.

Monthly credits made usage manageable

Clients receive an allocation of enrichment credits each month. Those credits set a clear limit on included usage and give clients control over which records they enrich. This replaced the expectation of unlimited enrichment with a defined monthly allowance.

The reported economics

Software costs

From software expense
to a revenue stream.

89.5%lower monthly platform cost
Before$4,775/mo
After$500/mo

Reported platform cost: $500/month versus $4,775/month in previous subscriptions. The in-house enrichment service now brings in $2,000/month in revenue.

Read the result and its scope

Previous monthly subscriptions: HubSpot $1,200 + Orum $1,575 + Clay $2,000 = $4,775. Compared with the reported $500 platform cost, that is $4,275 less per month (89.5%).

Monthly subscription costs of $4,775 compared with $500 in replacement platform costs: a reduction of $4,275 per month. The enrichment service also generates $2,000 in monthly revenue.

From a Clay bill to a revenue-generating service

The $2,000 monthly Clay subscription was eliminated. The replacement service gives clients access to their own enrichment and generates reported revenue of $2,000 per month. That revenue helps cover enrichment delivery costs instead of leaving Developer Labs to absorb them.

Developer Labs reports that the service reached roughly break-even and now contributes profit. The service replaces an external subscription with a client-facing capability, monthly usage controls, and recurring revenue.

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