WordPress Business Model – How Does WordPress Make Money?

Want to create a website or blog? Looking for the best software available online? Your search has come to an end now. WordPress is the one-stop destination to build your website.

Introduction to WordPress

WordPress is a popular and leading software system available for free. Yes, you’ve heard it right!!! It is an open-source software or tool used by millions of users across the globe to build effective websites or blogs. WordPress is probably referred to as the popular self-hosted WordPress. Many businesses prefer WordPress as the tool has eye-catching themes and plugins.

Themes available on WordPress can be downloaded from WordPress.com. Within a few simple clicks, people can download themes and customise them according to their requirements. Also, the plugins available on WordPress are probably used to extend your website functionality.

Hope you understand what exactly WordPress is. Now, let’s discuss the importance of WordPress. Though there is much software available online, many developers are investing their trust in WordPress. They believe that WordPress is more important and help them in multiple ways such as adapting the latest technology, easy integration and more. Employees can make their task easier, WordPress is the best software to update, edit and delete their website content without any hassles. Since WordPress is flexible that is a key reason it has gained trusted from leading organizations to support their every-day business transactions.

Who owns WordPress?

WordPress is owned by Automattic. Matte Mullenweg is the founder of Automattic and serves in the “Board of WordPress Foundation”.

Matt Mullenweg was created Automattic in the year 2005, i.e 2 years after introducing WordPress. The key purpose is to make “WordPress Hosting” effective and allow users with no technical knowledge to create a blog with WordPress.

Since WordPress.com was powered by free and open-source software. Automattic had planned a vested interest in WordPress software further. It’s no secret that WordPress is open-source software, it doesn’t earn money. At that time, Matt registered the “WordPress trademark” through Automattic.

As WordPress grows it’s popularity and reputation, Automattic has denoted the “WordPress trademark” to the “WordPress Foundation” in the year 2010. Also, it ensures the long-term sustainability of WordPress (non-profit project). 

WordPress business model

WordPress is the leading CMS and popular blogging destination – “foundation owns the trademark”. Simply put, WordPress makes money from its donations. Also, the Foundation often hold a “public-benefit-organization”, they manage their revenues from events and conferences conducted by WordPress.

How does WordPress make money?

Many people think how can Automattic earn revenue when they’re providing WordPress software for free. If you want to know how does WordPress make money, continue reading…

Web hosting

No matter whether you’re running a start-up business or large entrepreneur, WordPress provide web hosting service to most popular business such as WSJ’s All Things D, TechCrunch, CNN and more. WordPress Hosting plan starts from $15,000 per month.

Google AdSense

Business often prefers advertisement to make money. Even free blogs that are hosted on WordPress want to earn conversions. They drive conversions and traffic through Google ads. WordPress carry Google ads and make money from it. But, Google advertisements will appear when they meet these conditions:

  • The users can use multiple search engines such as Google, Yahoo and Bing. But, the user should not use the Firefox web browser.
  • The visitor needs to log out their WordPress account.
  • The referring source should not be powered by WordPress. Consider, when a user visit on “abc.wordpress.com” from “xyz.wordpress.com”, at that instance you might not view any ads.

Even with these conditions, WordPress is earning billion dollars every month through Google Adsense.

WordPress themes

Thinking and choosing the best theme to use to your website or web design every week is exhausting. Themes are a handy way to build an attractive website. Eye-catching themes could be an excellent way for business to execute their products or services. WordPress is offering a few themes for free. But, these themes are basic and everyone uses. So business needs to choose premium themes to make their website stand out from the crowd. WordPress is offering premium themes. The cost could probably range from $50 to $100. These themes are designed by WordPress developers. Here the commission per sale is earned by Automattic.

Premium accounts

It’s no surprise that everybody can host their blog on WordPress website for free. But with the free version, WordPress doesn’t offer few features such as storage, custom web domain and more. The premium features are used by businesses to build a user-friendly and effective website. If you choose a premium account, you need to pay $8 per month to enjoy premium features.

WordPress revenue from other sources

So far we have discussed WordPress is earning a good income from web hosting, Google AdSense, premium themes and accounts. On the other hand, Automattic is earning revenue from other sources such as dealing with other products and services, these are probably linked to “WordPress.org”.

Let’s discuss them,

Web host referrals

Referrals earn good revenue. WordPress suggests few third-party web hosts, these hosts probably provide free hosting services and allows self-hosting. Since WordPress is referring a list of web hosting providers to its users, Automattic will earn a good amount of commission on every referred sale.

It’s no surprise that web host referrals are earning good profist for Automattic. When the users search for WordPress Hosting on their search engines, with advertisements and sponsored posts, users will redirect and this way Automattic is running as a profitable business.

WordPress support

Users need support while installing the application or storing the information, all the type free WordPress support will not serve the purpose. Therefore business often consider subscribing to WordPress customer service of Automattic. The support team will provide flexible service around the clock. Also, their team will solve the issue with right solution. As per analysis, WordPress development support team will respond within less than 6 hours. WordPress support for Enterprises are paying $2.5 to $5000 every year for utlizing the customer support.

Guided Transfers

Generally business transfer their blog from one domain to another. If you;re planning to transfer your website from “WordPress.com” to “WordPress.org”, Automattic will help you. With Guided Transfers you can easily move your blog. Automattic will charge $119 on one-time transfer.

VaultPress

Backup is important. The primary purpose of doing backup is to create duplicate information that can be recovered if any data theft or failure occurs. The data failures are data corruption, virus, malware attach, deletion and more. If you’re planning to backup your blog to the cloud then ValutPress service is here to help you. Automattic is offering VaultPress package starting from $15 every month. Here your blog will be backedup in real-time and also notify when there are any potential problems.

VideoPress

Audio and video files are essential for every website. WordPress is offering VideoPress plugin to enhance your website. Install the VideoPress plugin and host videos, audio and other visual files on your website. Here the videos and audio files are served without any interruption (ads). VideoPress plugin charges $60 per year. There is no particular limit on bandwidth.

WordAds

WordAds is a leading and popular “WordPress based advertisement network” that is available to all the websites or blogs that are hosted on WordPress. WordAds is a win-win solution for the websites to provide ads that are from various platforms such as Google AdSense, Amazon a9, Yahoo, Facebook Audience Network and more. These ad buyers often work on a revenue-sharing business model with their publishers.

Conclusion

WordPress is a popular and free CMS and publishing tool available online. Small and large business prefer WordPress as it is open-source software that allows developers to build a wide range of plug-ins, widgets and themes. Over 35% of active websites are powered by WordPress on the internet. Users don’t need to have the technical knowledge to run and install WordPress. Even a non-technical user can operate WordPress without hassles.

As already discussed, WordPress is one of the popular platforms that is operated by the community. It means the platform is not acquiring any contributions. After that, WordPress decided to make money. It is offering various plans such as free, personal, premium and business plans. Also, WordPress is generating profits from other sources such as WordPress themes, premium accounts, web host referrals, WordPress support, guided transfers, VaultPress, VideoPress and WordAds. So far WordPress has earned millions of dollars by providing these services and support to businesses and individuals.

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