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Business Operations Business Models

How Does StubHub Make Money (Business and Revenue Model)

The StubHub business model

StubHub logo
Here’s what you should know:
  • What is StubHub, and how does StubHub work?
  • How does StubHub make money?
  • A Percentage of Ticket Sales
  • StubHub subsidiaries, acquisitions, and exits
  • StubHub profit and revenue
  • What is the StubHub business and revenue model?
  • StubHub funding, net worth, and valuation

How does StubHub make money? Here is a full, in depth, breakdown of their main revenue stream and services they offer, as well as the StubHub business and revenue model, how much StubHub makes per year, and how StubHub works.

What is StubHub, and how does StubHub work?

StubHub is an online ticketing platform that allows users to buy and sell tickets for live sports, concerts, and more.

Founded in 2000 by Eric Baker and Jeff Fluhr, StubHub went on to later get acquired by Viagogo for a reported $4.1 billion in November of 2019.

Since that time, StubHub now partners with more than 130 organizations including notable institutions like the MLB, NFL, and more.

So, how does StubHub work? To use StubHub, users can simply either download their mobile app on Apple Store or Google Play store; or visit their website.

Once on their platform, customers can use the search bar on the homepage to look up tickets for concerts, live sports, and more. They can then compare the seats and prices available for that event and purchase directly on the platform if they choose to do so.

Some of StubHub’s competitors include Ticketmaster, SeatGeek, and other online marketplaces to buy and sell tickets.

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

How does StubHub make money?

StubHub partners with more than 130 organizations that bring millions of tickets on their platform to be sold. So how does StubHub make money off of all those tickets and partnering organizations?

Below is a breakdown of how much money StubHub makes and its revenue model. Including their main revenue stream and how much they charge for their services.

Here is how StubHub makes money in 2022

StubHub has a revenue model that makes money in just one (1) way; by collecting a percentage of all tickets sold on their platform.

#1. A Percentage of Ticket Sales

StubHub makes all of its money by collecting a percentage from each ticket sold and bought on its platform.

The way it works is sellers can list their tickets on StubHub for free; but if and when those ticket(s) sell, StubHub collects a 15% fee from the seller as well as a roughly 10% fee from the buyer when the order is complete.

StubHub Ticket Fees:

  • Seller fee: 15% of the sales price
  • Buyer fee: 10% of the sales price
StubHub Ticket Fees | StubHub seatmap | StubHub Business Model | How Does StubHub Make Money? | How Does StubHub Work?
Source: StubHub

Note: StubHub charges both the buyers and the sellers of a ticket a fee, which means StubHub collects about 25% in fees from each ticket sale, on average.

StubHub subsidiaries, acquisitions, and exits

Aside from StubHub being acquired by Viagogo for $4.1 billion, StubHub has had its own fair share of acquisitions as well.

To date, StubHub has made a total of 5 acquisitions and 2 investments.

Mergers and acquisitions business model
Source: Crunchbase | StubHub

StubHub profit and revenue

StubHub’s last reported earnings came in 2019 when they brought in $1.1 billion in revenue. Since that time, StubHub has not released any official reports in regards to company earnings.

Note: Because Viagogo Entertainment Inc, the parent company of StubHub, is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.

What is the StubHub business and revenue model?

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

  • Two sided Marketplace business model
  • Commission based business model
  • Business to business (B2B) business model
  • B2B2C (partnerships) business model
  • Mergers and acquisitions (M&A) business model

StubHub funding, net worth, and valuation

According to StubHub’s Crunchbase profile, StubHub has raised $59.2 million over 7 rounds.

On November 25, 2019, StubHub was acquired by Viagogo for $4.1 billion, per reports.