HubSpot Business Model: How does HubSpot Make Money

Damini Bhandary Damini Bhandary
Nov 13, 2021 5 min read
HubSpot Business Model: How does HubSpot Make Money

The internet has brought an immense change in the world, its invention is the game-changer in the technology industry, and is actually the root of every modern tech. In fact, the entire world is literally in our hands because of it.

Thanks to technological advancement, now we can store and manage data on the internet itself and can also provide IT services through it with the help of Cloud computing systems. In this computing system, we don’t need computer hardware to run the program and store the data.

The growth of a company hugely depends on its marketing, sales, and its customer service; a business has to do a lot of things for its survival. Online marketing is a new way, and a business must indulge itself in it. The software is used for all of these so that a company can grow to its full extent. One of the most popular platforms that offer all the above facilities is HubSpot. In this article, we will talk about HubSpot, its business model, how it makes money and what exactly it does. So let’s begin with it.

“Every kid coming out of school now thinks he can be the next Mark Zuckerberg, and with these new technologies like cloud computing, he actually has a shot.”

- Marc Andreessen

What is HubSpot?
Business Model of HubSpot
How does HubSpot Make Money?

What is HubSpot?

HubSpot was founded in the year 2006 by Brian Halligan and Dharmesh Shah, both of them are MIT graduates. HubSpot is mainly about developing cloud-based marketing software, for businesses to market themselves online.

HubSpot is a huge platform that deals with everything that is needed in the process of digital marketing of a business, like Inbound marketing, social media publishing, blogging, SEO, web content marketing, email marketing, and reporting and analytics. Its headquarters is in Cambridge, United States of America. Basically, it is a software platform that helps business sell their products and services more.

Try HubSpot

In 2021, HubSpot acquired The Hustle, which is a newsletter company that deals with small business owners and entrepreneurs. In the month of September of 2021, Yamini Rangan becomes the new CEO of HubSpot.

What Is Inbound Marketing?

Hubspot deals with CRM (customer relationship management) and offers inbound marketing. Inbound marketing is all about helping potential customers find the business by making it visible online. Inbound marketing includes SEO, social media marketing, content marketing, and email marketing.

What Are The Advantages Of Inbound Marketing?

Here, we will talk about the benefits that a business gets from inbound marketing. They are:

  • Gets the business its customers from different sources like YouTube, Blog, and social media instead of from a single source.
  • Trust can be ensured to the customers when the company shares the content about their products and services that shows their reality.
  • If inbound marketing is done properly, advertisement costs can be avoided and money can be saved.
  • Content is created in such a way that they can reach the audience whenever they search about something using specific terms.

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Business Model of HubSpot

HubSpot being a SaaS company indulges in the creation of software for inbound marketing and sales-related work. It mainly makes money through subscription plans and of course professional services that include providing tools to help in the process of digital marketing of a business.

When HubSpot first started its journey, it used to focus on small and medium-sized businesses, but now with time, any kind of business that wants to strengthen its online presence is, willingly investing in HubSpot. In 2007, only they proved their mettle when it acquired their competitor GroupSharp.

How does HubSpot Make Money?

The software made by HubSpot is sold on a subscription basis. The CRM (Customer Relationship Management) tool is free for the customers to use, plus this helps HubSpot attract customers to use their subscription basis plan.

The hub application of HubSpot is another form where the income comes from. It includes three hubs, which are marketing, sales, and service hub. Third-party apps, consultation, and events are additional ways how HubSpot makes money.

Marketing Hub

The marketing hub comes in three different plans and they are starter, professional, and enterprise. This also comes in a free package as well and helps in converting the users into customers that willing to pay.

Sales Hub

The Sales hub is used to boost the performance of the sales of the business. It has some great features that include live chatting with potential customers, sending quotes to the customers, and others.

Service Hub

The Service hubs include a different support system that the customers need, like giving out surveys and answering all the frequently asked questions to enlighten the customers more.

Third-party apps like Outlook, Mailchimp, and Slack provide these hubs offering to the customers. Consultation service is offered by HubSpot like SEO-related tips for the customer’s website, content strategy, and others.

Events are also conducted all over the world to advertise their tools and services and teach how to increase sales, all these come under a fee that the audience of the events had to pay.

As of 2021, HubSpot has reached over $1 billion in annual recurring revenue. The 15-year-old company has over 100,000 customers that are paying for its services. In the year 2021, HubSpot reportedly has over 4981 employees and with so many employees and a brilliant business strategy, the revenue of the company is not at all surprising.

Try HubSpot

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HubSpot as a CRM platform with its different tools works in making the business reach the heights of success through the help of inbound marketing.  We are in a position where we cannot ignore digital marketing for our business.  All the things that are necessary for the digital marketing of a business, HubSpot gives out those services through cloud computing.


What is HubSpot used for?

HubSpot is a CRM software designed to help customers in aligning the business sales and marketing teams.

Is HubSpot good for Small Businesses?

HubSpot is said to be the best for small and mid-sized businesses that are looking to attract customers online.

Who is the CEO of HubSpot?

Yamini Rangan is the current CEO of HubSpot in 2021.

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