Back

Best Practices for the License Management App

How-to Guides and Tutorials
13 min
Best Practices for the License Management App in Salesforce_cover

The License Management App (LMA) is a Salesforce-managed package that helps ISVs track and manage leads and licenses for their AppExchange solutions. It integrates with sales and marketing processes to improve customer engagement, retention, and business growth. Installed in all partner business orgs (PBO), LMA includes custom objects for tracking package details, versions, and licenses, ensuring better control over product distribution and usage.

In this post, you’ll review best practices for setting up the license management app and managing licenses with LMA. Additionally, you’ll get to know three common challenges in license management and how to overcome them.

Setting Up the License Management App

Getting started with your license management app, or even optimizing existing LMA may require expertise with Salesforce and substantial effort. Here’s the basic procedure for configuration and the best practices for approaching LMA in a business setting:

First, let’s review the procedure to set up the LMA to understand the technicalities behind the process. 

Steps to configure the LMA:

  1. Install the LMA package from the AppExchange.
  2. To install the LMA in an org other than your PBO, log in to the Salesforce Partner Community.
  3. Click the question icon AppExchange Support question mark and then click Log a Case for Help.
  4. Select Salesforce Partner Program Support.

Tip: If you don’t see the Salesforce Partner Program Support tile, use the org picker to select the org that’s associated with your Salesforce partnership account.

  1. Navigate to ”Setup” → “Installed Packages” to verify the installation.
  2. Associate a Package with the License Management App
  3. Assign required permissions to administrators and users managing licenses.
  4. Enable key features such as automated notifications and license provisioning workflows.

Additionally. For product, enter and select Partner Programs & Benefits. For the topic, enter and select ISV Technology Request. Provide any other required details, and then click Create Case.

After Salesforce reviews the case, you receive an email with an installation URL.

As for the best practices to carry out this step, they are the following:

  • Align the initial configuration with organizational goals to ensure the LMA supports strategic license management outcomes.
  • Establish consistent naming conventions for licenses and user groups simplifies future tracking and reporting efforts.
  • Add custom fields in the LMA is beneficial for capturing additional data specific to license usage needs.
  • Use dashboards during setup helps monitor progress and identify any configuration gaps effectively.
  • Design scalable workflows ensures the LMA can adapt to organizational growth or structural changes.

If you’re curious about setting up the LMA, you may be as well interested in how to build an app for Salesforce AppExchange.

Now, we proceed with figuring out how to assign licenses.

Looking for LMA and AppExchange Consultation from a licensed Provider?
Reach out to us

Key Best Practices for Managing Licenses with LMA

Frankly enough, even if LMA is set up error-free, there’s still room for mistakes or inefficiencies. They are mostly related to usage and management. Let’s explore how to manage licenses with LMA in an optimal way:

Optimizing Customer Retention with License Activity Tracking

Effective customer retention requires proactive monitoring of license activity. The License Management App (LMA) provides valuable insights into customer engagement, allowing businesses to detect potential churn risks and act before customers discontinue their licenses.

Best strategies for license activity tracking:

  • Monitor license expirations: Set up Apex triggers or automation flows to notify sales reps before a license expires, allowing them to initiate renewal discussions with customers.
  • Track uninstalls: Implement automated notifications to alert customer retention specialists when a customer uninstalls an offering. This enables timely outreach to understand the reason and potentially restore the relationship.
  • Analyze engagement trends: Use LMA data to identify customers who rarely use their licenses, signaling a need for support, additional training, or feature improvements.
  • Segment customers based on usage: Categorize license holders into active, at-risk, and inactive groups to tailor support and marketing efforts accordingly.

By leveraging LMA’s tracking capabilities, businesses can proactively manage customer relationships, ensuring higher retention rates and improved user satisfaction.

Enhancing License Compliance and Access Control

Maintaining compliance and proper access control is critical for software vendors managing licenses at scale. LMA provides structured tools to ensure that licenses are correctly assigned, managed, and audited.

Best strategies for license compliance and access control:

  • Use the API for license validation: The isCurrentUserLicensed method in Apex helps determine whether a user has an active license for a managed package, ensuring only authorized users can access the solution.
  • Restrict direct modifications to LMA objects: LMA automatically creates package, package version, and license records. Instead of modifying these records directly, always use the Modify License page to update entitlements and permissions.
  • Create list view filters for lead management: Distinguish subscriber-generated leads from other sources by setting up list view filters in Salesforce, helping sales teams focus on AppExchange prospects.
  • Conduct periodic license audits: Regularly review user entitlements and access levels to ensure compliance with licensing agreements and prevent unauthorized usage.

Implementing these best practices helps businesses streamline license administration, enhance security, and maintain compliance with Salesforce’s licensing framework.

Regular Audits

Regular license audits play a strategic role in aligning license usage with organizational goals. They uncover patterns of underutilization or inefficiencies, offering insights for license reallocation or cost-saving opportunities. 

Beyond compliance, audits help forecast future needs, ensuring the organization scales efficiently while maintaining operational effectiveness and adhering to Salesforce licensing agreements.

Benefits of regular audits:

  • Reduce costs by identifying unused or underutilized licenses for reallocation or deactivation.
  • Improve compliance with Salesforce licensing policies and regulatory requirements like GDPR or HIPAA.
  • Align license usage with organizational needs, preventing overprovisioning or inefficiencies.
  • Enhance forecasting by providing data to predict future license requirements and budget planning.
  • Minimize risks associated with non-compliance or licensing agreement violations.

A sample audit checklist is provided in the image below:

Checklist for conducting an LMA audit

Automating License Management

Automating license management streamlines allocation and de-provisioning, reducing manual effort, errors, and costs. By leveraging Salesforce’s built-in automation tools, organizations can efficiently manage licenses while ensuring compliance and operational efficiency.

Best strategies for automating license management:

  • Usage-based allocation: Automate the reassignment of licenses based on actual usage patterns, deactivating licenses for inactive users and reallocating them to new users.
  • Threshold-based alerts: Set up automation to trigger alerts when license usage reaches predefined thresholds, enabling proactive adjustments.
  • Lifecycle management: Implement end-to-end automation for the license lifecycle, from provisioning during onboarding to de-provisioning during offboarding or role changes.

Salesforce automation capabilities:

  • Workflow rules
  • Process builder
  • Approval processes
  • Einstein next best action
  • Scheduled jobs
  • Platform events

Best tools:

  • Salesforce Flow: Salesforce Flow automates complex business processes, including license allocation and de-provisioning, using a visual interface.
  • Apex Triggers: Utilize Apex code to execute specific actions, such as updating license records, based on defined events within Salesforce.
  • License Management App (LMA): Manage leads and licenses for AppExchange solutions, integrating the LMA into sales and marketing processes for better customer engagement.

Should you experience difficulty with LMA management, consider requesting Salesforce administration services or explore how to hire a Salesforce administrator in another blog post by Synebo. 

Tracking License Expiry and Renewals

Proactively managing Salesforce license expiration and renewals is critical for maintaining operations and ensuring Salesforce license compliance. Effective strategies help prevent service disruptions, reduce costs, and support Salesforce license optimization.

Tips for managing license expiration and renewal processes:

  • Automated alerts: Configure notifications in Salesforce to alert administrators 30, 60, or 90 days before license expiration.
  • Centralized tracking: Maintain a centralized system or dashboard that tracks all license expiration dates and renewal statuses.
  • Stagger renewals: Schedule license renewals on a staggered basis to prevent resource strain and enable better budget planning.
  • Vendor communication: Establish regular touchpoints with Salesforce account managers to discuss renewal terms, license needs, and potential discounts.

Potential pitfalls to avoid:

  • Ignoring expiration alerts: Failing to act on alerts can lead to service disruptions or compliance issues.
  • Overprovisioning at renewal: Renewing all licenses without assessing usage leads to unnecessary costs.
  • Lack of documentation: Inadequate tracking of renewal terms and costs can complicate future negotiations or audits.

Customizing the App for Specific Business Needs

The Salesforce License Management App (LMA) offers customization options to align with specific organizational needs, enhancing Salesforce license management processes. Customizations can improve efficiency, compliance, and scalability across various business scenarios.

Customization options in LMA:

  • Custom fields
  • Custom workflows
  • Dashboards and reports
  • Approval processes
  • Automation with Salesforce Flow

At this moment, you may be wondering what’s the difference between configuration and customization and why the first was described as a part of the set-up procedure, why the latter is tied to managing LMAs. You may see how customization and configuration are different and what specialists are responsible for one or another scope of work in the image below:

Salesforce customization vs configuration

Best practices:

  • Centralized tracking: Maintain a centralized dashboard that provides a real-time overview of all licenses to ensure consistent monitoring.
  • Role-based access: Configure workflows to allocate licenses based on predefined roles and responsibilities, ensuring compliance and efficiency.
  • Proactive notifications: Set up automated alerts for nearing expiration dates or unusual usage patterns to avoid disruptions.
  • Scalable processes: Design workflows and reports that accommodate organizational growth without requiring extensive manual updates.
  • Regular review: Periodically assess customizations to ensure they align with evolving business needs and regulatory changes.

You may be additionally interested in Salesforce AppExchange development services by a trusted Salesforce partner. 

Integrating LMA with Other Salesforce Tools

Integrating the Salesforce License Management App with other Salesforce tools or third-party applications can significantly enhance Salesforce license management by improving efficiency, tracking, and automation. These integrations streamline workflows, provide deeper insights, and ensure compliance.

Third-party integrations recommended: 

  • Salesforce Sales Cloud: Connect LMA with Sales Cloud to link license data with customer accounts, enabling better tracking of client-specific license usage.
  • Salesforce Flow: Use Flow for automation, such as assigning licenses based on user onboarding triggers or de-provisioning licenses upon role changes.
  • Einstein Analytics: Integrate with Einstein Analytics to generate advanced reports and predictive insights about license usage trends and future needs.
  • Third-party HR tools: Sync LMA with HR platforms like Workday or BambooHR to automate license provisioning and deactivation during employee onboarding or offboarding.
  • Collaboration tools: Integrate with Slack or Microsoft Teams for real-time notifications about license usage, expiration, or other key updates.

How integrations can enhance license management

  • Reduce operational costs by optimizing license allocation and usage.
  • Minimize compliance risks through automated workflows and real-time tracking.
  • Improve efficiency by eliminating manual processes for license provisioning.
  • Enhance decision-making with actionable insights from advanced analytics.
  • Increase productivity by centralizing license management across tools.
  • Reduce downtime by automating renewal alerts and deactivations.
Explore Salesforce Integration Services by Synebo
Reach out to us

3 Common Challenges in License Management and How to Overcome Them

And now, let’s get through three of the most common challenges in utilizing and managing LMA and ways to address them:

#1 Overcoming compliance issues

Adhering to compliance standards like GDPR or SOX is necessary to ensure that licenses match user roles and avoid feature misuse. For instance, granting admin-level licenses to users who don’t need access violates internal control policies and could breach compliance regulations, risking fines or audits.

Solution: It’s advised to implement automated license provisioning and de-provisioning based on role-based access control (RBAC). Regularly audit license assignments to ensure they align with compliance requirements, such as data protection under GDPR or operational transparency for SOX. Use Salesforce reports to flag inconsistencies, and provide teams with compliance training to reduce violations.

#2 Handling unexpected costs

Unexpected costs in Salesforce license management arise from improper allocation, overprovisioning, and underutilization of licenses. These issues increase expenses and waste resources. Effective Salesforce license monitoring and optimization are crucial to managing costs and maintaining compliance while maximizing ROI.

Tips and strategies:

  • Conduct regular audits to identify unused licenses.
  • Automate license allocation with Salesforce tools.
  • Monitor active versus assigned licenses.
  • Use Salesforce license optimization dashboards.
  • Negotiate flexible license agreements.
  • Consolidate duplicate user accounts.
  • Train employees on efficient license usage.

#3 Improving user adoption of license management processes

Low user adoption in managing Salesforce licenses can lead to inefficiencies and compliance risks. Encouraging best practices here requires clear communication, streamlined processes, and regular training. 

Strategies for adoption:

  • Create role-based user guides for managing Salesforce licenses.
  • Conduct workshops or Q&A sessions to address user concerns.
  • Share internal documentation through collaborative tools like Confluence or SharePoint.
  • Communicate updates via Slack or email with clear action points.

Useful resources:

You may also be interested in exploring 3 steps for the Salesforce app development lifecycle in another blog post by Synebo.

Final Take

Effective license management with Salesforce’s License Management App can significantly improve operational efficiency, reduce costs, and enhance compliance. By following best practices like regular audits, automation, and integration with other tools, organizations can optimize license usage while avoiding common pitfalls. 

Entrust your LMA project to Synebo — a Salesforce development agency with more than 9 years of experience on the market and over 1000 projects under our belt. Our team of senior Salesforce specialists is ready, willing, and able to execute LMA setup and management for you. 

Contact us for assistance.

FAQ
What are the most common mistakes in using the Salesforce License Management App?
Common issues include overprovisioning licenses, leading to unnecessary costs, and underutilizing assigned licenses, which wastes resources. Failure to monitor usage trends and regularly audit licenses can result in poor Salesforce license compliance and missed opportunities for optimization.
How can I customize the License Management App to fit my organization's specific needs?
Use Salesforce tools such as custom fields, reports, workflows, and dashboards to tailor the License Management App for your processes. Focus on workflows that align with your team's license monitoring and management needs for better efficiency.
How do I automate license allocation and de-provisioning in Salesforce?
Automate license allocation using Salesforce Flow to assign licenses based on user roles or activities. Use Apex triggers to deactivate licenses for inactive users, improving Salesforce license compliance and reducing waste.
What are the key metrics to track for effective license management?
Track metrics like active versus assigned licenses, usage trends, feature adoption rates, and renewal schedules. These provide actionable insights for Salesforce license optimization, ensuring cost-effectiveness and proper resource allocation.
How often should license audits be conducted, and what should they include?
Conduct Salesforce license audits quarterly to review active users, unused licenses, and compliance with usage policies. Include feature adoption and renewal timelines to align licenses with current organizational needs.
Table of content
Best Practices for the License Management App Setting Up the License Management App Key Best Practices for Managing Licenses with LMA 3 Common Challenges in License Management and How to Overcome Them Final Take
articles You might be interested in
How to Hire a Salesforce Service Cloud Specialist
18 Feb 2025
How-to Guides and Tutorials
How to Hire a Salesforce Service Cloud Specialist
Narine Pogosova
Narine Pogosova
13 min
How to Customize Salesforce_ A Step-by-Step Guide_cover
11 Feb 2025
How-to Guides and Tutorials
How to Customize Salesforce: A Step-by-Step Guide
Yana Chekan
Yana Chekan
13 min
Best Practices for the License Management App in Salesforce_cover
04 Feb 2025
How-to Guides and Tutorials
Best Practices for the License Management App
Yana Chekan
Yana Chekan
13 min
How to Hire a Salesforce Business Analyst _cover
28 Jan 2025
Salesforce development
How to Hire a Salesforce Business Analyst
Narine Pogosova
Narine Pogosova
11 min
Why Should You Hire a Salesforce Experience Cloud Consultant?
21 Jan 2025
Salesforce development
Why Should You Hire a Salesforce Experience Cloud Consultant?
Narine Pogosova
Narine Pogosova
7 min
How to Hire a Salesforce Integration Consultant?
14 Jan 2025
Salesforce development
How to Hire a Salesforce Integration Consultant?
Narine Pogosova
Narine Pogosova
8 min
Why Should You Hire Salesforce AppExchange Partners?
07 Jan 2025
Salesforce development
Why Should You Hire Salesforce AppExchange Partners?
Yana Chekan
Yana Chekan
7 min
Features of Salesforce Sales Cloud Einstein
02 Jan 2025
Salesforce development
Sales Cloud Einstein: Features, Benefits, and Costs
Yana Chekan
Yana Chekan
13 min
Salesforce Marketing Cloud_ Complete Guide_cover
24 Dec 2024
Salesforce development
How to Hire Salesforce Architects in 2025 | Comprehensive Guide
Narine Pogosova
Narine Pogosova
13 min
How to Hire Salesforce Developers in 2025_ A Comprehensive Guide_cover
17 Dec 2024
Salesforce development
How to Hire Salesforce Developers in 2025: A Comprehensive Guide
Narine Pogosova
Narine Pogosova
13 min
How to Hire a Salesforce Administrator_ A Strategic Guide_cover
10 Dec 2024
Salesforce development
How to Hire a Salesforce Administrator: A Strategic Guide
Narine Pogosova
Narine Pogosova
12 min
Salesforce Mobile Publisher_ Create Branded Mobile Apps_cover
03 Dec 2024
Salesforce development
Salesforce Mobile Publisher: Create Branded Mobile Apps
Yana Chekan
Yana Chekan
12 min
Salesforce Hyperforce_ The Future of Scalable and Secure Cloud Infrastructure_cover
25 Nov 2024
Salesforce Hyperforce: The Future of Scalable and Secure Cloud Infrastructure
Yana Chekan
Yana Chekan
14 min
Salesforce Winter Release 2025_ Key Features, Enhancements, and What’s New_cover (1)
19 Nov 2024
Salesforce Winter Release 2025: Key Features, Enhancements, and What’s New
Yana Chekan
Yana Chekan
11 min
10 Must-Have Salesforce Apps and Add Ons_cover
12 Nov 2024
10 Must-Have Salesforce Apps and Add Ons in 2025
Yana Chekan
Yana Chekan
13 min
Salesforce vs. ServiceNow: Which CRM Is Best in 2025
05 Nov 2024
Salesforce development
Salesforce vs. ServiceNow: Which CRM Is Best in 2025?
Yana Chekan
Yana Chekan
12 min
Salesforce Dynamic Dashboard and Reports From A to Z
29 Oct 2024
Salesforce development
Salesforce Dynamic Dashboard and Reports From A to Z
Yana Chekan
Yana Chekan
12 min
All About Salesforce Field Service Lightning (FSL)
24 Oct 2024
Salesforce development
Salesforce Field Service Lightning (FSL)
Yana Chekan
Yana Chekan
13 min
Data Security in Salesforce: Best Practices
22 Oct 2024
Salesforce development
Data Security In Salesforce: Best Practices
Anastasia Sapihora
Anastasia Sapihora
15 min
Salesforce Data Migration_ What Is It & How to Set It Up__cover
16 Oct 2024
Salesforce development
Salesforce Data Migration: What Is It & How to Set It Up?
Yana Chekan
Yana Chekan
13 min
Why Salesforce Integration with ERP Systems Matters
09 Oct 2024
Salesforce development
Why Salesforce Integration with ERP Systems Matters
Yana Chekan
Yana Chekan
11 min
Email Studio in Salesforce Marketing Cloud: A Comprehensive Guide
01 Oct 2024
Salesforce development
Email Studio in Salesforce Marketing Cloud: A Comprehensive Guide
Yana Chekan
Yana Chekan
11 min
How to Select the Right Apps on Salesforce AppExchange: A Comprehensive Guide
30 Sep 2024
Salesforce development
How to Select the Right Apps on Salesforce AppExchange: A Comprehensive Guide
Yana Chekan
Yana Chekan
11 min
What Is Journey Builder in Salesforce Marketing Cloud and How Does It Work?
25 Sep 2024
Salesforce development
What Is Journey Builder in Salesforce Marketing Cloud and How Does It Work?
Andrii Kliuchka
Andrii Kliuchka
11 min
What Is Salesforce CPQ and How Does It Work?
23 Sep 2024
Salesforce development
What Is Salesforce CPQ and How Does It Work
Yana Chekan
Yana Chekan
12 min
Top 8 Service Cloud Einstein Features
20 Sep 2024
Salesforce development
Top 8 Service Cloud Einstein Features
Yana Chekan
Yana Chekan
14 min
Salesforce Financial Services Cloud Implementation
17 Sep 2024
Salesforce development
Salesforce Financial Services Cloud Implementation
Sergii Romashov
Sergii Romashov
15 min
Salesforce Channel Order App: How, When, and Why to Use It ‌
12 Sep 2024
Salesforce development
Salesforce Channel Order App: How, When, and Why to Use It ‌
Yana Chekan
Yana Chekan
13 min
Salesforce license types
03 Sep 2024
Salesforce development
Salesforce License Types: Understanding and Choosing the Right One
Yana Chekan
Yana Chekan
13 min
How Does Einstein Copilot Work: A Guide to AI-Powered Salesforce
27 Aug 2024
Salesforce development
How Does Einstein Copilot Work: A Guide to AI-Powered Salesforce
Yana Chekan
Yana Chekan
12 min
Best Practices For Salesforce Integration with Third-Party Apps_cover
20 Aug 2024
Salesforce development
Best Practices For Salesforce Integration With Third-Party Apps
Yana Chekan
Yana Chekan
17 min
What is Salesforce Low-Code Platform_cover
12 Aug 2024
Salesforce development
What Is a Salesforce Low-Code Platform in 2025?
Yana Chekan
Yana Chekan
16 min
Low Code vs No Code: Choosing the Best Salesforce Development Approach
07 Aug 2024
Salesforce development
Low Code vs No Code: Choosing the Best Salesforce Development Approach
Sergii Romashov
Sergii Romashov
13 min
Best AI Tools for Salesforce to Boost CRM Performance_cover
22 Jul 2024
Product Reviews
Best AI Tools for Salesforce to Boost CRM Performance in 2025
Yana Chekan
Yana Chekan
15 min
Best Salesforce Adoption Strategies for Success
18 Jul 2024
How-to Guides and Tutorials
Top Salesforce Adoption Strategies for Business Efficiency
Yana Chekan
Yana Chekan
15 min
How to Build Custom Salesforce Apps Without Coding_ A Step-by-Step Guide
11 Jul 2024
How-to Guides and Tutorials
How to Build Custom Salesforce Apps Without Coding: A Step-by-Step Guide
Yana Chekan
Yana Chekan
16 min
Salesforce Data Management Best Practices: What it Is and Why it Matters
24 Jun 2024
Salesforce development
Salesforce Data Management Best Practices: What You Need to Know
Yana Chekan
Yana Chekan
13 min
Mastering Salesforce CRM Optimization_ Proven Best Practices_cover
19 Jun 2024
Salesforce development
Mastering Salesforce CRM Optimization: Proven Best Practices
Yana Chekan
Yana Chekan
14 min
Ultimate Guide to Mastering Salesforce Automation Tools
17 Jun 2024
Salesforce development
Ultimate Guide to Mastering Salesforce Automation Tools
Sergii Romashov
Sergii Romashov
17 min
Proven Ways to Lower Costs Salesforce
13 Jun 2024
How-to Guides and Tutorials
Salesforce License Optimization: Proven Ways to Lower Costs
Sergii Romashov
Sergii Romashov
15 min
A Guide to Internal and External Links
12 Jun 2024
How-to Guides and Tutorials
Integrating Salesforce Files: A Guide to Internal and External Links
Olexander Orlуk
Olexander Orlуk
15 min
Salesforce ISV Partners: How to Become One
24 May 2024
How-to Guides and Tutorials
The Complete Guide to Salesforce ISV Partners: Advantages and How to Become One
Yana Chekan
Yana Chekan
15 min
Everything You Need to Know about Salesforce SAP Integration
22 May 2024
How-to Guides and Tutorials
Everything You Need to Know About Salesforce SAP Integration
Eduard Chekan
Eduard Chekan
14 min
Best Practices for Building a Salesforce Knowledge Base
20 May 2024
How-to Guides and Tutorials
Best Practices for Building a Salesforce Knowledge Base in Lightning Experience
Yana Chekan
Yana Chekan
13 min
Salesforce Editions Comparison_ How to Choose the Right One
10 May 2024
How-to Guides and Tutorials
Salesforce Editions Comparison: How to Choose the Right One
Synebo
Synebo
13 min
How to Create a Data Extension? Salesforce
02 May 2024
How-to Guides and Tutorials
How to Create a Data Extension in Marketing Cloud?
Synebo
Synebo
16 min
Unlocked Package vs. Unmanaged Package: Choosing the Right Fit for Your Salesforce Org
26 Apr 2024
How-to Guides and Tutorials
Unlocked Package vs. Unmanaged Package: Choosing the Right Fit for Your Salesforce Org
Synebo
Synebo
13 min
How to Set up Salesforce Experience Cloud_
24 Apr 2024
How-to Guides and Tutorials
How to Set up Salesforce Experience Cloud?
Yana Chekan
Yana Chekan
17 min
How to run a Salesforce Health Check
18 Apr 2024
How-to Guides and Tutorials
How to Run a Salesforce Health Check
Yana Chekan
Yana Chekan
16 min
A comparative analysis of managed vs unmanaged package Salesforce
15 Apr 2024
Salesforce development
A Comparative Analysis of Managed vs. Unmanaged Package Salesforce
Synebo
Synebo
13 min
phone