nav
Business Models Business Operations

How Does Squarespace Make Money (Business and Revenue Model)

The Squarespace business model

Squarespace logo
Here’s what you should know:
  • What is Squarespace, and how does Squarespace work?
  • How does Squarespace make money?
  • Subscription Revenue (Squarespace Business)
  • Selling Squarespace Domains
  • Transaction Fees
  • Squarespace profit and revenue
  • What is the Squarespace business and revenue model?
  • Squarespace funding, net worth, and market cap
  • Squarespace subsidiaries, acquisitions, and exits

How does Squarespace make money? Here is a full, in depth, breakdown of their three (3) revenue streams and the different products and services they offer, as well as the Squarespace business and revenue model, how much money Squarespace makes per year, and how Squarespace works.

What is Squarespace, and how does Squarespace work?

Squarespace is an all-in-one platform that provides users with the infrastructure to build and host websites.

Founded in 2004 by Anthony Casalena, Squarespace began trading on the New York Stock Exchange (NYSE) on May 19, 2021, under the ticker symbol “SQSP”.

Since that time, Squarespace now has more than 4.1 million paying users with subscriptions across 200 countries and territories on their platform.

So, how does Squarespace work? To get started with Squarespace, simply go to their website and choose from one of the subscription plans they offer.

Once chosen, set up your domain name. If you already have one, you can either transfer it to Squarespace or point the domain’s DNS records to them. If not, you can purchase one from Squarespace. After you configured that, you can begin designing, setting up, and make your website live within Squarespace – and more.

Some of Squarespace’s competitors include Shopify, Wix, Square, and other website building services.

Squarespace App in Apple App Store | Squarespace Business Model | How Does Squarespace Make Money | How Does Squarespace Work
Source: Apple App Store | Squarespace

How does Squarespace make money?

According to Squarespace, Squarespace has more than 4.1 million paying users with subscriptions on its platform. So how does Squarespace make money off of all these subscribers?

Below is a breakdown of how much money Squarespace makes and its revenue model. Including all revenue streams and how much they charge for their services.

Here are the 3 ways how Squarespace makes money in 2022

Squarespace has a revenue model that makes money in three (3) ways; through subscription revenue, selling domains, and transaction fees.

#1. Subscription Revenue (Squarespace Business)

Squarespace makes most of its money from its subscription revenue.

There is no free version of Squarespace. So after a 14-day free trial, all users on the platform are billed monthly or yearly if they want to continue having access to their Squarespace website.

Squarespace offers four (4) subscription plans to choose from – they are; Personal, Business, and Commerce (Basic and Advanced). All of these allow users to set up a Squarespace site, but each has its own added benefits such as selling in person (POS), 0% transaction fees, and more – depending on the pricing plan. Which you can see below.

How much does a Squarespace subscription cost? (Squarespace pricing plans)

  • $23 to $65 per month depending on the plan, or
  • $192 to $588 per year billed annually
Squarespace homepage | Squarespace Business Model | How Does Squarespace Make Money | How Does Squarespace Work
Source: Squarespace

Note: Squarespace has 4.1+ million subscribers that are all paying at least $23 per month.

#2. Selling Squarespace Domains

Squarespace also makes money from the users who purchase and register domains through them when setting up their website(s).

The way it works is – If a user doesn’t have a domain yet, then users on an annual plan can get one custom domain, for free for the first year. After that, it’s between $20 to $70 annually to renew the domain and keep it active. Pricing depends on the domain’s top-level domain (TLD).

How much does a Squarespace domain cost?

  • $20 to $70 per year, per domain

#3. Transaction Fees

In addition to the subscription and domain revenue, Squarespace also makes money from the transaction fees they charge “Business plan” users.

How much is the Squarespace transaction fee?

  • 3% transaction fee on all sales for users with the Business plan subscription tier

Note: Users can avoid this transaction fee by upgrading to a Squarespace Commerce plan at any time.

Squarespace profit and revenue

In 2021, Squarespace reported $784 million USD in revenue.

Note: Because Squarespace, Inc. is a publicly traded company, under the Securities Exchange Act of 1934, they must file continuous financial filings with the U.S. Securities and Exchange Commission (SEC). You can find all of Squarespace’s publicly released financial reports, including annual reports, through Squarespace’s investor section on their website.

What is the Squarespace business and revenue model?

Squarespace makes money through a few revenue models that they combine within their company, they are:

  • Subscription business model
  • Transaction based business model
  • Fee for service (FFS) business model
  • Business to business (B2B) business model
  • B2B2C (partnerships) business model
  • Mergers and acquisitions (M&A) business model

Squarespace funding, net worth, and market cap

According to Squarespace’s Crunchbase profile, Squarespace has raised $578.5 million over 4 rounds and has a market cap of $3.19 billion as of September 2022.

Squarespace subsidiaries, acquisitions, and exits

To date, Squarespace has made a total of 4 acquisitions.