How Does Salesforce Make Money?


Salesforce offers software as a service (SaaS), which allows users to access an application online. It operates on a subscription pay-as-you-go basis. Since all data and information are stored in the cloud, Salesforce is always accessible from any device. It also permits precise real-time updates and ongoing data tracking. Salesforce's work is as follows: Client relationship management is its main objective (CRM). CRM software helps organizations communicate better with both current and potential customers. The software can identify a company's top leads and suggest actions and next steps. The features of Salesforce go beyond attracting new customers; they're made to satisfy customers and encourage brand loyalty.

Salesforce Statistics That You Should Know

Bring Higher Sales by 44%

The primary component of the Salesforce business strategy is a revenue-boosting cloud-based data management service. It saves money and resources because no new hardware or software is needed. Since all the data is stored on the cloud, you may access it.

Increase Your Market Share of CRM Systems by 19.8%

According to statistics, this amount surpasses the combined holdings of SAP, Adobe, Microsoft, and Oracle, the four biggest rivals. The solution adapts to your current business goals and streamlines information access for your team.

What Does Salesforce Aspire to Accomplish?

Numerous cloud platforms are housed within the Salesforce ecosystem, allowing you to interact with diverse data and provide your clients with various services. It helps you understand your customers by providing a 360-degree view of their lifespan, better and more centralized data management, speedier workflows, and integrated systems in a zip. Despite several products, CRM is the foundation of the entire Salesforce model and is specifically designed for each Cloud.

What More on This?

When you start the list of reasons someone should explore Salesforce's business, it goes on forever. Salesforce effectively created the SaaS concept. To surpass the current leader in the CRM software market, Salesforce, and claim the top spot. In 2021, Salesforce was still the most widely used CRM tool, with a market share of 23.9%. With a market share of 5.5%, Oracle, Salesforce's primary competitor, finished second. Microsoft and SAP each had a 5% cent of the market. To provide you with a fast summary, we will go over how Salesforce expanded from a small ant to a sizable firm, the innovations it created along the way that transformed the market, describe Salesforce's business strategy, and finish by discussing Salesforce's business model.

Salesforce's Business Model About Making Money

  • Sales of subscriptions, support port services and, professional services comprise most of Salesforce's revenue.

  • Subscription and support fees, which made up 94% of all revenue for Salesforce in the fiscal year 2021, were the company's main income source.

  • The remaining 6% went to professional services and other segments. Salesforce announced 2021 revenue of $21.2 billion and a net income of $4.1 billion.

  • Sales Cloud, Service Cloud, Platform & Other, Marketing Cloud, and Commerce Cloud are the four products that Salesforce provides under its more general subscription and support income stream.

  • Sales Cloud, the company's oldest and most significant product, used to produce the highest revenue out of the four sectors, but it has now fallen to third place behind the Service Cloud and Platform segments.

  • In 2021, Sales Cloud generated $5.1 in revenue.

  • Revenues for the Service Cloud, Platform & Other, Marketing & Commerce Cloud, and Other Cloud were $5.3 billion, $6.2 billion, and $3.1 billion, respectively.

What Makes Salesforce So Valuable?

Every business needs a reliable platform to communicate with current and potential customers. For a long time, customer relationship management systems (CRM) have managed this necessary procedure. Salesforce has mostly replaced CRM in the current era of cloud computing. Over 10 million innovators are members of Salesforce, once operated out of a tiny San Francisco apartment.

Key Areas of Revenue Generation For Salesforce

  • They view CRM software licensing as being done on a per-user, per-year basis, as was previously mentioned. Assuming a business wants 100 users for CRM, they would purchase 100 licenses from SFDC and shell out between $1,000 and $3,000 per user per year in subscription fees.

  • The primary source of revenue for SFDC is the renewal of annual subscriptions. The initial license fee is forfeited due to high customer acquisition expenditures like commissions and other fees.

  • They have many solutions besides CRM offerings, including Sales Cloud, Service Cloud, etc. They offer, a PaaS platform that numerous companies and independent software providers use to build their own apps. This is also sold via a subscription business model.

  • They generate revenue by offering consulting services and helping larger organizations use their software. Leading successful SFDC installs is the primary duty of their Professional Services section.


Salesforce provides enterprise cloud-based software focusing on customer relationship management, allowing companies communicate with and comprehend their customers. Salesforce's services assist companies in improving their relationships with partners, clients, and potential clients through cloud technology.

Updated on: 18-Apr-2023


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