Zoom is a highly demanding video conferencing platform used widely by consumers and businesses to stay in touch with other users. It has recently become popular based on the ability to earn money via hardware rentals, subscription fees, and other add-on services. However, the question is how does zoom make money?
Overview of Zoom
Zoom is a cloud-video conferencing platform designed to make face-to-face communication easy over the internet. The app has found its wide applications in distance learning, telecommunication, and teleconferencing.
Zoom Business Model and its Features
Zoom has become a leader in teleconferencing and video chat. It has superior quality videos. Furthermore, the app has a relatively lesser lag period than its competitors. While Zoom provides improved and robust free service without advertisements, its business model possesses a paid subscription service. Zoom’s business model even rents its hardware to all who want to get the best video conferencing solutions.
Revenue Statistics of Zoom App
Zoom generated approximately $622 million in revenues last year in 2020 and a net profit of about $22 million. It also witnessed about 300 percent increase last year with revenue of $2.65 billion. People of America have been inspired by the drastic increase in their income and started finding answers to the query related to how does zoom make money.
Zoom has the following revenue streams-
Zoom has multiple service tiers, including its highly demanding free service. The teleconferencing app allows members to conduct meetings for a maximum of 40 minutes. The app also allows conferences of up to 100 people. Other than that, Zoom has the following paid subscriptions-
Every Zoom user may obtain a phone plan by paying $10 per month.
Video Conferencing Pro Plan
The video conferencing pro plan by Zoom will start at $14.99 for a single license per month. Here, users may host meetings with up to 100 participants without bothering about the time limit even for 30 hours. Moreover, the Pro plan gives 1GB of cloud storage to record meeting playback. If this is not enough, users may get the opportunity to stream on social media platforms.
The business plan of Zoom is available for $19.99 monthly per license. Accordingly, the Zoom business plan allows 300 participants to join together and give 99 licenses. Other features users may enjoy are recording transcripts, single sign-on, company branding, and managed domains.
Subscribers of Zoom Enterprise Plan also have to pay the license of $19.99 per month for a single subscriber. The plan gives you each of the benefits highlighted in the business plan. However, subscribers may also organize meetings with a maximum of 500 participants. Moreover, users of enterprise plans also get unlimited cloud storage.
Zoom gives hybrid plans to benefit educators. Here, the plan begins at $7.5 for a single student license. Moreover, Zoom offers a plan at $14.99 per month for healthcare clinics.
Zoom incorporates its HaaS or Hardware as a Service model. The model offers companies and business organizations hardware solutions required for video conferencing and telephones. Hence, business users may rent phones, cameras, and other devices from $2.99 per month to $200 per month.
Zoom users may add specific services to the existing zoom call by paying a small amount of fee. Recording of Zoom conferences is available at almost every place from $40 per month to $500 per month depending on the required storage capacity. Users may add the feature of audio conferencing to boost webinars and meetings by paying only $100 a month. Users who hold large meetings require additional capacity, which may cost about $50 per month for a single license. This offer is available for a maximum of 500 participants.
Alternatively, businesses may pay $90 per month for a single license and it is available for up to 1,000 participants. Other than that, the Zoom app offers room connectors to help mobile devices, desktops, and other endpoints to establish video conferences and other forms of communication. In this case, the app is available for $49 monthly for a single connector. The details of the add-on services include the following-
Rooms/Modern Workspaces by Zoom
Zoom mentions its Rooms as Modern Workspaces. They are available for hybrid teams. Rooms help the remote teams to collaborate effectively with the help of high-resolution videos and a few additional features. Rooms by Zoom offer single-click joining, calendar integrations, 1,000 video participants, 1080-pixel HD videos, and 10,000 webinar viewers.
However, how does zoom make money via Modern Workspaces or Rooms? For this, we should say that Rooms charge only $49 per license in a month. However, if you choose annual billing, you should pay only $41.5 per month.
Zoom Video Webinar Service
Zoom makes money with its video webinar service. Video Webinar by Zoom allows users to host webinars with up to 10,000 participants. The technology differs from any regular meeting, as it has view-only attendees. The organizers may share their audio, video, and screen.
On the other hand, attendees may use polling, Q&A, and chat features to interact with the host. If you want to know how does zoom make money, you have to check the pricing of the Zoom Webinar. Accordingly, webinar users should pay $79 per month per license when the attendees will be up to 500. However, the price will increase to $6490 per month and per license for a maximum of 10,000 webinar attendees.
Zoom lets you earn money via special packages for Healthcare, Finance, Education, and Government organizations. It also has a separate marketplace for installing several third-party applications, like Trello, Slack, and Salesforce.
Zoom is an excellent video conferencing solution available in the market. According to Zoom, it hosts approximately 300 million daily meetings in free and paid services. Investors who want to earn profit based on the growth of the Zoom platform should complete their due diligence on services offered by the company.