Zoom app business model
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Zoom app business model.Zoom Business Model: How Zoom Makes Money
Zoom has recently become a well-known app in the technology industry. Due to the limits put on physical contact, most businesses and individuals needed a solution that allowed them to collaborate and meet online. Zoom was founded in Zoom had many high-profile clients, such as the University of Stanford. However, it experienced a significant surge of new customers during the pandemic.
Similarly, the app broke many records on various app stores for the most downloaded app. Due to the significant increase in the downloads and customer count, Zoom also generated significant revenues. Given below is a description of both of these.
Zoom uses a freemium business model. With this model, companies provide products and services for free. However, they put specific limits on their products, after which customers have to pay. The freemium business model is highly successful in the technology industry. Zoom offers customers a free plan. Through this plan, customers can have unlimited one-to-one meetings. The limit on the app comes for group meetings, where it only allows 40 minutes of meetings with up to participants.
However, most corporate and professional clients may use the paid features that increase the limits for usage. For example, schools, colleges, and universities using the app pay to use the professional features. Through this, Zoom makes a significant amount of money. In this aspect, Zoom uses a subscription-based model, where customers have to pay a monthly fee to use the app. The more users that use the app, the more Zoom can make money. However, the app significantly improved its revenues in It was a staggering increase of 1.
It was before the pandemic, which shows the app was successful before the pandemic. However, it was also the same year as the company went public. So, some experts believe that it may have had an impact on the revenues. It means the company experience almost double revenues in the year. Compared to , the company increased its revenues by more than five times. The significant increase in profits was primarily due to the rise in the number of users. Lastly, the company experienced almost double revenues in each quarter of Zoom earns its revenues from several sources.
It provides its customers with different plans and packages from which they can choose. Zoom does not make money from its free features. Unlike other apps that use the freemium model, Zoom does not display ads on its app. Therefore, it cannot generate any ad revenues.
However, the free version of the app does a great job of showing its features and attracting new users. Zoom has four different subscription plans through which it earns money. The company has its basic plan where it does not charge anything from its customers. As mentioned, it allowed unlimited 1-to-1 meetings, 40 minute limit on group meetings, up to participants, and some other basic features.
The second plan is the pro plan. The pro plan includes up to 30 hours of group meetings, social media streaming, 1 GB cloud recording per license, and up to 1, participants with large meetings. It also includes better support compared to basic users. The next plan is for small and medium businesses.
It can host up to participants and increase the limit to 1, with a large meetings add-on. It includes other features such as recording transcripts, managed domains, company branding, single sign-on, and all pro-plan features. The next plan is the Zoom United Business plan.
Similarly, it includes all the features that come with other plans. On top of that, it includes Zoon United Pro phone features, unlimited calling within global select, optional add-ons. It also has meeting features such as host meetings of up to participants and other features.
It includes all features available in the other plans. It also includes meetings that can host up to participants, unlimited cloud storage, a dedicated customer success manager, and other custom features. It also includes executive business reviews and bundle discounts. Add-ons are features that are not a part of the Zoom subscription plans. These add-ons allow users to increase their limits or order other features without paying for higher plans.
These include features such as video webinars or increasing group meeting participant limits. These add-ons are only available to pro and business plan users. Similarly, higher plans already have most features included and may not need to order them separately.
Add-ons also come with a monthly subscription plan. Zoom also provides phone plans to users. These include four tiers of paid plans. They can also call domestic or international numbers based on the plan they choose. It also includes other features such as advanced phone features, making and receiving calls from multiple devices, unlimited calls and much more.
Customers have to pay for this package in addition to the Zoom Meeting plan. Given below is a summary of the plans. Zoom Phone also comes with add-ons.
As with the meeting add-ons, customers have to be subscribed to a licensed plan to use these. Zoom also has a video webinar feature that lets hosts conduct online webinars. It also has several other features that allow both the hosts and participant more flexibility in their options.
Given below is a list of all the features for the Video Webinar feature. The Zoom Video Webinar features allow the app to earn more than any other plans or features. There are six different plans for users to choose from based on the number of attendees they expect. Zoom also offers bigger plans. However, customers have to get in contact with the team to get custom prices.
Like other features, users can also choose from different add-ons for the video webinar plan. Zoom also has rooms features, which allows easier meeting solutions. It has a day trial plan that users can use for free. They can also get better enterprise solutions by contacting support. A list of all the features for Zoom Rooms is as below.
Zoom Rooms has three add-ons. These include conference room connector, hardware as a service and professional services. Given below is a summary of these add-ons. Zoom also bundles various packages into one through its Zoom United plan. The prices may be different from other packages. However, it allows customers to order several Zoom plans for lower prices.
Here is a summary of the Zoom United plans that customers can get. Zoom United also comes with add-ons. These include international calling and additional phone numbers, same as for Zoom Phone plans. Zoon is an online video conference and collaboration tool. The app gained significant popularity during the pandemic.
While Zoom uses a freemium business model, it still makes income. The primary source of income for the app is through its subscription plans. Zoom also has several add-ons for each of these packages for which customers have to pay. Related Posts. Scroll to Top.
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