how does HubSpot make money?

In this article, we will investigate the issue of “how does Hubspot make money.” We will also examine the various services provided by the organization. On the other side, we will investigate Hubspot’s history, the significance of inbound marketing, What kind of services most benefit businesses, and, most crucially, how Hubspot generates income.

how does HubSpot make money

Among the services that Hubspot provides are Subscriptions and Professional Services, which are how the company generates money. Included in this is the process of digital marketing for businesses that use their services. Let’s get into more depth about this in the section below.

When HubSpot first began its operations in the market, they only focused on small and medium-sized businesses, however now, any kind of business can take up their services, to strengthen their online presence and to increase customer acquisition are willing to invest in HubSpot. In the year 2017, Hubspot showed their mettle by acquiring groupSharp, a rival with a similar moniker in the market.

Hubspot offers services on a subscription basis

Customers get access to the customer relationship management (CRM) solution at no cost on their website. In addition, the Hubspot application produces revenue for the company through customer retention strategies.

The hub is divided into three parts that include the following

·       Marketing services

·       Sales services

·       Services related to customer acquisition

Hubspot also makes use of third-party apps and consultation to act as revenue generation for the company.

What is Inbound Marketing and why its important?

Inbound marketing refers to the process of recruiting clients via several channels, including websites and social media. When compared to outbound marketing, inbound marketing focuses on persuading clients after they have already acquired access to a platform or website, rather than before.

Search engine optimization, digital marketing, internet marketing, and email campaigns, to mention a few examples, are all instances of inbound marketing channels.

What are the benefits of employing inbound marketing strategies?

Here are a few of the benefits of inbound marketing that you should consider:

More channels (e.g., a blog or YouTube channel) will be added to your marketing mix.

·       Increasing the number of client retention channels available to lessen dependency on a single route.

·       When companies provide product-related knowledge and demonstrate their competency, they have the potential to improve consumer confidence in their products and services.

·       To target a certain audience, the material must be created based on specific search phrases.

·       Because advertising is not required, businesses save money on their advertising costs.

To many people’s surprise, in 2006, HubSpot was the first business to adopt the phrase “inbound marketing.” The writers went on to publish a second book on the topic that was much more in-depth.

What is Hubspot?

As a software product developer and marketer, Hubspot is situated in the United States. The company is known for supplying services in the fields of inbound marketing.

The company was originated in 2006 by an individual named as Brian Halligan and Dharmesh Shah, two guys who go by the names of Brian and Dharmesh respectively.

In addition to customer relationship management, Hubspot offers a variety of other services, including social media advertising, content organization, lead creation, web analytics, search engine optimization, live talk, and client support.

Facts about Hubspot

Name of the companyHubspot
Type of the companyPublic
Type of IndustrySoftware
Founded inJune of 2006
Founders of HubspotBrian HalliganDharmesh Shah
Headquarters of HubspotCambridge, Massachusetts, U.S
Key People of HubspotYamini Rangan (CEO)Kate Bueker CFOKipp Bodnar CMODharmesh Shah (CTO)
Revenue Earned of HubspotUS$883.026 million
Operating Income of Hubspot-US$50.820 million
Net income of hubspot-US$85.031 million
Total Assets of HubspotUS$1.973 Billion
Total Equity of HubspotUS$762.655 Million
Number of Employees of Hubspot3,387
Link to official Website of

History of Hubspot

HubSpot was started in the year of 2006 by Brian Halligan and Dharmesh Shah when they were students at the institution of  Massachusetts Institute of Technology (MIT).

Revenues increased from $255,000 to $15.6 million throughout that period. Laura Fitton’s Twitter app shop, Oneforty, was acquired by HubSpot after a few months. Additionally, the firm launched cutting-edge technology that allows web pages to be customized for each unique visitor.

According to Forbes, HubSpot began by focusing on small firms but has now “moved gradually upmarket to service bigger enterprises with up to 1,000 workers.” On August 25, 2014, HubSpot filed for the IPO, requesting to be registered on the NSE under the ticker symbol HUBS.

They generated more than $140 million by selling shares for $25 per share. It has climbed considerably since then, reaching an all-time high of $841.26 on November 12, 2021. HubSpot acquired Kemvi, a company that uses artificial intelligence and machine learning to assist sales teams, in July of last year. The company anticipates sales of $1 billion in 2021.

In a report published by Axios, HubSpot will acquire The Hustle, a content and email newsletter firm aimed at small business owners and entrepreneurs, among other things. It is anticipated that the transaction will be completed in February 2021. HubSpot announced in September 2021 that Yamini Rangan had been appointed as the company’s new CEO, with Brian Halligan stepping down from his position as Executive Chairman.

The revenue model of Hubspot

Revenue generation of Hubspot depends on the following channels

Marketing Hub

The marketing center gives all of the necessary tools to convert leads into customers. There are three different price options available, each with premium features that assist users in generating leads and converting them into paying customers.

Starter ($50/month or $45/Month if paid annually)

Features: Landing pages, ad management, conversational bots, list segmentation, email marketing, and ad targeting are some of the services available.

Professional ($890/month or $800/month if paid annually)

Features: A/B testing, multi-language content, and Salesforce connectivity are among the other capabilities.

Enterprise ($3,200/month for enterprises with at least 10,000 marketing contacts)

Features: Partitioning, user roles, adaptive testing, and predicted lead scoring are some of the features available.

Scales Hub

Sales Hubspot acts as an extension of the HubSpot CRM Software that helps users in integrating data and closing deals.

On the other hand, the Marketing hub offers software suits to help business improve their sales performance and hence Sales hub seems like the perfect name for the given service.

Sales hubs are offered in three different pricing strategies, each for a particular entity.

Starter ($50/month or $45/month if paid annually)

Features: Videos, quotations, phone calls, live chat, and a reporting dashboard are all available.

Professional ($500/month or $450/month if paid annually)

Features: Sales analytics, bespoke reporting and forecasting, 1:1 video production, computed properties, and eSignatures are just a few of the services available.

Enterprise ($1,200/month for at least 10 paid users)

Features: Enterprise-level features include hierarchical teams, advanced permissions, playbooks, and call transcription.

Service Hub

The service hub aims to provide tools that help businesses in converting paying customers into fans. The purpose of this service is to enable the business to provide basic customer support to their clients.

Events are also held all over the globe to market their goods and services and to educate how to enhance sales; all of this comes at a cost that the attendees of the events must pay.

This also has three different pricing and is charged monthly and annually.

Starter ($50/month or $45/month paid annually)

Features: Bots that converse with one other, team email, prepared snippets, and rep productivity reports are just a few examples.

Professional ($400/month or $360/month paid annually)

Features: NPS, customer experience, and customer support surveys, as well as video hosting

Enterprise ($1,200/month for at least 10 paid users)

Features: NPS, customer experience, and customer support surveys, as well as video hosting


HubSpot also generates money through two options for customers who want to develop or expand an optimized website:

Professional ($300/month or $270/month if paid annually)

Features: A drag-and-drop editor, SEO optimization, and a report generator for contact attribution are all available. There is also a 99.99 percent uptime guarantee and 24/7 security monitoring.

Enterprise ($900/month)

Features: The marketing centre gives all of the necessary tools to convert leads into customers. There are three different price options available, each with premium features to assist users in generating leads and converting them into paying customers.

Professional Services offered by Hubspot

The package includes inbound consultation, technical consultancy, migration services, and classroom instruction. The cost of training is influenced by the length and kind of training provided.

Onboarding Services offered by Hubspot

They’ll provide technical assistance for each of the Hub designs listed in this section. In addition, onboarding services for partners and start-ups are available. The plan selected from a certain Hub determines the price.

Finally, we looked at the question of “How does Hubspot make money.” We discovered that Hubspot generates revenue by providing two categories of services, which are Subscriptions and professional Services, respectively. This involves the technique of digital marketing for businesses that make use of their products or services.

Frequently asked question (FAQ): How does Hubspot make money

Does HubSpot make a profit?

Profits are generated by selling software as a subscription service, as is the case with HubSpot. The free customer relationship management (CRM) solution supplied by the company is mostly used to acquire new customers. Monetization is accomplished via the usage of HubSpot’s Hub applications or its app store.

What is HubSpot famous for?

HubSpot is a software development and marketing company based in the United States that specializes in inbound marketing, sales, and customer care technologies. Hubspot was founded in 2006 by Brian Halligan and Dharmesh Shah, who are both based in the United Kingdom.

What is HubSpot revenue?

883 million USD (2020)

Who funded HubSpot?

Twelve investors have put their money behind HubSpot. GV and Sequoia Capital are two of the most recent investors in the company. A total of 12 investments have been made by HubSpot. OneSignal made its most recent investment on April 14, 2021, according to their website. On April 14, 2021, HubSpot announced that it has invested in Drift.

How does HubSpot track revenue?

In your HubSpot account, go to Reports > Analytics Tools and fill out the form. Select Revenue Analytics from the drop-down menu. The Date range and Frequency dropdown choices may be used to restrict the data to a certain period or a single day. By selecting a period that is longer than the current date, you may make predictions based on your current income.

Is HubSpot free worth it?

Yes, it is worth the money since you will be able to begin using HubSpot CRM and other marketing tools right away without having to break the bank. Even though HubSpot does not provide any free services, you may still find that the service provides significant value for the money you pay.


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