How does Outreach make money?

  • Outreach is an American software-as-a-service (SaaS) company founded by Andrew Kinzer, Wes Hather, Gordon Hempton, and Manuel Medina in 2014. The idea for Outreach came from the demise of the recruitment software company GroupTalent.
  • Outreach makes money via the sale of three sales engagement products: Outreach Kaia, Outreach Commit, and Outreach Success Plans. Outreach charges $100 per user per month as a minimum, with the total cost billed annually.
  • Unlike competitors such as FunnelFLARE, Outreach does not offer a free trial. Major clients include Zoom, Okta, Snowflake, and Adobe.

Origin story

Outreach is an American software-as-a-service (SaaS) company founded by Andrew Kinzer, Wes Hather, Gordon Hempton, and Manuel Medina in 2014.

The platform provides clients with revenue management technologies that are powered by artificial intelligence to assist in sales engagement and productivity.

The Outreach story begins three years before the company was founded. In 2011, the co-founders created GroupTalent – a recruitment start-up selling software to help tech firms source and hire talent.

The endeavor was successful initially, but GroupTalent found itself with two months of remaining cash after a short time with little hope of raising more.

Medina believed that if the company generated more meetings it could gain more opportunities to sell its recruitment software.

So we built the engine to do that, and we saw that we were getting 40% reply rates to our own outreaching emails. It was so successful we had a 10x increase in productivity. But we ran out of sales capacity, so we started selling the meetings we had managed to secure with potential talent directly to the tech companies themselves

He later explained in an interview.

With companies contacting GroupTalent for its sales engine and not for its recruitment software, the co-founders changed its name to Outreach and never looked back.

In June 2021, Outreach raised $200 million in Series G funding to be worth $4.4 billion.

The company has enjoyed rapid growth in the last two years thanks to the shift toward remote working and digital selling.

To date, 19 of the top 25 fastest-growing public software businesses are using the Outreach platform to achieve their revenue goals.

Outreach revenue generation

Outreach makes money by selling its sales engagement platform to interested parties.

The company does so via three core products:

  1. Outreach Kaia – to help sellers become successful with real-time intelligence. Sales representatives can spend more time selling and less time searching with artificial intelligence-triggered content cards. They can also drive deal momentum with real-time answers to difficult prospect questions. Kaia also allows teams to view actionable meeting summaries in their inbox with promised follow-up items after the meeting has occurred.
  2. Outreach Commit – an artificial intelligence-driven sales assistant that infuses science into the art of sales forecasting. Commit allows teams to build forecasts everyone can understand with summarised forecasts and pipeline visibility. On the subject of pipelines, Commit has an early-warning system that identifies issues with intelligent deal signals and ensures the team will never fall short on pipeline coverage.
  3. Outreach Success Plans – the company promotes Success Plans as a product that manages deal health through a single pane of glass. Sellers and buyers can collaborate to create dynamic action plans with agreed-upon success criteria, objectives, and timelines with access to shared project resources. This option also coordinates and aligns buy-side and sell-side teams involved in a deal cycle, with captured data from these interactions used to help senior staff course-correct deals and make more accurate forecasts.

Outreach does not list pricing on its website and will only provide specific figures if an interested party books a demo. 

With that said, prices for the above products start at $100 per user per month, billed annually. Unlike competitors such as FunnelFLARE, there is no option to take a free trial. 

Major Outreach clients include Zoom, Okta, Snowflake, and Adobe.

Key Takeaways

  • Outreach Kaia: Provides real-time intelligence to help sales representatives spend more time selling and less time searching with AI-triggered content cards and real-time answers to prospect questions.
  • Outreach Commit: An AI-driven sales assistant that infuses science into sales forecasting, helping teams build understandable forecasts with summarised forecasts and pipeline visibility.
  • Outreach Success Plans: Manages deal health through a single pane of glass, allowing sellers and buyers to collaborate on dynamic action plans with agreed-upon success criteria, objectives, and timelines.
  • Revenue Generation: Outreach makes money by selling its sales engagement platform, offering three core products: Outreach Kaia, Outreach Commit, and Outreach Success Plans.
  • Pricing: Prices start at $100 per user per month, billed annually. Unlike competitors, Outreach does not offer a free trial.
  • Rapid Growth: Outreach has experienced rapid growth, attracting significant funding and working with 19 of the top 25 fastest-growing public software businesses.
  • Major Clients: Major clients of Outreach include Zoom, Okta, Snowflake, and Adobe.

Main Free Guides:

Connected Business Models

SaaS Business Model

software-as-a-service-companies
The software-as-a-service (SaaS) industry has become among the largest tech industries today. Software-as-a-service describes any cloud-based application delivery and consumption business model where companies charge users a subscription fee depending on their desired level of functionality.

PaaS Business Model

paas-business-model
PaaS stands for platform as a service. Together with other “as-a-service” models, this model’s basic premise is to offer a solution to the final customer without hosting it on-premise, with complex implementations and large overhead. The PaaS model is a form of evolved cloud computing. The provider, together with virtualization, storage, network, and servers, provides middleware and runtime to the user/customer, which only handles data and applications.

IaaS Business Model

iaas-business-model
IaaS stands for infrastructure as a service. Together with other “as-a-service” models, the basic premise of this model is to offer a solution to the final customer without having to host it on-premise, with complex implementations and large overhead. The IaaS model provides virtualization, storage, network, and servers where the final user/customer will handle applications, data, operating systems, and run times.

CaaS Business Model

cloud-as-a-service
Cloud as a service is a business model that combines the cloud infrastructure delivered to customers as a subscription-based service, where the customer can access a cloud infrastructure without running it on-premise. Therefore, the whole premise of the cloud as a service business model is to offer a more agile cloud infrastructure at a fraction of the costs compared to on-premise software, which can be scaled up according to the need of the business.

AI Business Models

ai-industry

C3.ai Business Model

c3ai-business-model
C3 AI is a cloud-based Enterprise AI SaaS company. It built a set of proprietary applications (known as the C3 AI suite) that offer its clients the ability to integrate digital transformation applications with fast deployment and no overheads. C3 AI makes money primarily via its subscription services and professional fees.

Snowflake Business Model

snowflake-business-model
Snowflake is a cloud-based platform whose vision enables organizations to have seamless access to explore, share, and unlock data value to break down data silos. The company runs through a consumption-based revenue model, enhanced by its professional services. Primarily an enterprise solution, Snowflake leverages direct sales.

Palantir Business Model

palantir-business-model
Palantir is a software company offering intelligence services to governments, institutions, and large commercial organizations. The company’s two main platforms, Gotham and Foundry, are integrated at an enterprise level. Its business model follows three phases: Acquire, Expand, and Scale. The company bears the pilot costs in the acquire and expand phases and runs at a loss. Where in the scale phase, the customers’ contribution margins become positive.

About The Author

Scroll to Top
FourWeekMBA