Evernote is a note-taking, organizing, task management, and archiving app created by the EverNote Corporation. The company was founded in 2001 by Russian-American entrepreneur Stepan Pachikov to increase the capacity of human memory.
Evernote works on the freemium businessmodel. This means users can try out the basic product for free and upgrade to the premium service if so desired. The company is adept at turning free customers into paying customers the longer each utilizes the platform.
Evernote has a simple revenue generation strategy, with three premium subscriptions for personal users, employees, and organizations.
Evernote is a note-taking, organizing, task management, and archiving app created by the EverNote Corporation. The company was founded in 2001 by Russian-American entrepreneur Stepan Pachikov.
Pachikov created Evernote to extend the human memory and make things easier to find, suggesting that the human memory was fragile and unreliable:
“We all have hundreds of thousands of pieces of information, but it’s useless if we can’t find any of it. In business, the worst thing we can say is, ‘Oh, I’m sorry, I forgot your name.’”
The original EverNote incorporated the handwriting recognition technology that Apple underutilized in Newton, an early personal digital assistant first released in 1993.
Launched for Windows in 2004, users could write notes the old-fashioned way and search for specific notes according to date, keyword, topic, location, or contacts.
Pachikov met Phil Libin in 2007, a man with strong business acumen whom he believed could take the company forward.
Libin was subsequently appointed CEO and grew Evernote by steering the app away from desktops and toward the new frontier in smartphones.
Four years later, Evernote boasted 11 million users as engineers worked tirelessly to ensure the app was ready as each new app marketplace was launched.
The company raised four successful rounds of funding between 2010 and 2014 with Evernote enjoying gradual, steady, and entirely organic growth. Flush with cash, the company then embarked on a series of disastrous product launches.
Today, Evernote remains the most popular app for life organization, note-taking, and project planning with over 225 million active global users. The platform has inspired the creation of many similar services, including Microsoft OneNote, Google Keep, Hive Notes, and Dropbox Paper.
Evernote revenue generation
Evernote works on the freemium businessmodel. This means users can try out the basic product for free and upgrade to the premium service if they choose to do so.
With that said, let’s take a look at the premium offerings in more detail.
Premium subscriptions
For individuals and teams, there are three premium subscriptions to choose from:
Personal ($7.99/month) – ideal for home and family use, the Personal subscription allows users to sync unlimited devices with 10 GB in monthly uploads.
Professional ($9.99/month) – a plan more suited to workplaces with 20 GB monthly uploads and integration with Slack, Salesforce, Microsoft Teams, and others.
Teams ($14.99/user/month) – an enterprise solution for an unlimited number of devices, centralized account administration, and a dedicated success manager for teams with 25 or more seats.
Key Highlights
Evernote Overview: Evernote is a versatile app designed for note-taking, organization, task management, and archiving. It was created by the EverNote Corporation, founded in 2001 by Russian-American entrepreneur Stepan Pachikov, with the aim of enhancing human memory and facilitating better information retrieval.
Revenue Generation Strategy: Evernote operates on the freemium businessmodel. Users can access the basic version of the app for free and can opt to upgrade to the premium service for enhanced features. The company excels at converting free users into paying customers over time, with a gradual progression from trial to premium plans.
Origin Story: Evernote’s foundation was inspired by Stepan Pachikov’s vision of extending human memory. It incorporated handwriting recognition technology initially underused in Apple’s Newton. Launched in 2004 for Windows, Evernote allowed users to create, organize, and search notes based on various criteria. Phil Libin took over as CEO in 2007, driving Evernote toward mobile platforms. The company experienced both successes and setbacks but grew organically to achieve unicorn status in 2012.
User Growth: Evernote stands as a leader in life organization, note-taking, and project planning, with over 225 million active users globally. The app has influenced the development of similar services like Microsoft OneNote, Google Keep, and Dropbox Paper.
Revenue Generation: Evernote’s freemium model entices users with a basic free version and encourages them to upgrade to premium subscriptions. The company has demonstrated its ability to convert free users into paying customers over time.
Premium Offerings: Evernote offers three premium subscription plans for individuals and teams:
Personal ($7.99/month): Suited for home use, offering unlimited device syncing and 10 GB of monthly uploads.
Professional ($9.99/month): Geared towards workplaces, with 20 GB of monthly uploads and integration with platforms like Slack and Salesforce.
Teams ($14.99/user/month): Tailored for enterprises with unlimited devices, centralized account administration, and dedicated support for larger teams.
Business Model Element
Analysis
Implications
Examples
Value Proposition
Evernote’s value proposition centers around providing a digital workspace for individuals and teams to capture, organize, and access information seamlessly. Users can create notes, store documents, clip web articles, and add images, making it a versatile tool for personal and professional use. Evernote’s features, such as note synchronization across devices, robust search capabilities, and organization tools, enhance productivity and knowledge management. The platform offers accessibility and flexibility, allowing users to work from anywhere and on various devices, including smartphones and tablets.
Offers a digital workspace for information capture, organization, and access. Enables users to create notes, store documents, clip web articles, and add images. Enhances productivity and knowledge management through synchronization, search, and organization features. Provides accessibility and flexibility for users to work across devices. Appeals to individuals and teams seeking efficient information management. Facilitates personal and professional use cases. Drives user engagement by simplifying information handling and retrieval.
– Evernote’s digital workspace is valuable to professionals, students, and knowledge workers who rely on organized information. – Synchronization across devices ensures that users have access to their notes and documents wherever they go. – Robust search capabilities make it easy for users to find specific information within their notes. – Accessibility on multiple devices, including smartphones and tablets, aligns with modern work habits and mobile lifestyles.
Customer Segments
Evernote targets a diverse range of customer segments, including individuals, professionals, students, and businesses. It appeals to individuals seeking a personal information management tool as well as professionals and teams looking for collaborative note-taking and project organization solutions. Evernote’s versatility allows it to serve a broad spectrum of industries and roles, making it applicable to knowledge workers across different sectors. Additionally, the company offers Evernote Business, a subscription plan designed for organizational use, which caters to businesses and teams seeking enhanced collaboration and productivity features.
Targets individuals, professionals, students, and businesses. Appeals to individuals for personal information management. Serves professionals and teams for collaborative note-taking and project organization. Versatile application across different industries and roles. Offers Evernote Business for enhanced collaboration and productivity in organizations. Caters to knowledge workers seeking efficient information management.
– Targeting a diverse range of customer segments expands Evernote’s market reach and user base. – Versatility in application across various industries and roles makes Evernote a valuable tool for knowledge workers. – Evernote Business addresses the needs of organizations, fostering collaboration and productivity among teams.
Distribution Strategy
Evernote’s distribution strategy is primarily digital and relies on app stores, the web, and partnerships. Users can download Evernote’s apps for various platforms, including iOS, Android, Windows, and macOS, from app stores or the Evernote website. The company also partners with device manufacturers and software platforms to pre-install or integrate Evernote with their products. Evernote offers a free version of its platform to attract users and a premium subscription model that unlocks advanced features and additional storage space. Evernote Business is marketed to organizations, and team collaboration features are accessible through subscription plans.
Relies on digital distribution through app stores, the web, and partnerships. Offers apps for various platforms, including iOS, Android, Windows, and macOS. Partners with device manufacturers and software platforms for pre-installation and integration. Provides a free version to attract users and offers premium subscription plans. Markets Evernote Business to organizations with team collaboration features. Ensures accessibility and convenience for users across different devices. Attracts users with a free version and monetizes through premium subscriptions. Expands the user base through partnerships with device manufacturers and software platforms.
– Digital distribution simplifies access to Evernote’s platform and eliminates the need for physical distribution channels. – Offering apps on multiple platforms ensures broad accessibility and user convenience. – Partnerships with device manufacturers and software platforms increase Evernote’s visibility and reach. – The free version attracts users and serves as a gateway to premium subscriptions, diversifying revenue streams. – Evernote Business targets organizations, expanding its market presence and catering to collaborative work environments.
Revenue Streams
Evernote generates revenue through a combination of free and premium subscription models. The free version of Evernote offers basic features and limited storage space to attract users. The company monetizes its platform through premium subscription plans, such as Evernote Premium, which provide advanced features, increased storage, and offline access. Additionally, Evernote Business offers subscription plans tailored to organizations and teams seeking enhanced collaboration and administrative controls. Evernote earns consistent revenue from these subscription plans, ensuring a sustainable income stream.
Relies on revenue from: 1. Free version with basic features and limited storage. 2. Premium subscription plans like Evernote Premium with advanced features and increased storage. 3. Evernote Business subscription plans for organizations and teams. Ensures income through premium subscriptions and business plans. Diversifies revenue sources through free and premium offerings. Attracts users with free version and converts them to premium subscribers. Offers tailored solutions for organizational use, expanding the customer base.
– Offering a free version attracts a wide user base, creating opportunities to upsell users to premium subscriptions. – Premium subscription plans provide consistent revenue and offer advanced features, incentivizing users to upgrade. – Evernote Business caters to organizational needs, allowing the company to tap into the business and enterprise market.
Marketing Strategy
Evernote’s marketing strategy includes content marketing, digital advertising, referral programs, and partnerships. The company creates educational content, blog articles, and tutorials to showcase the value of its platform and help users make the most of it. Digital advertising campaigns raise awareness and target potential users. Evernote’s referral program rewards users who refer others to the platform, incentivizing user acquisition. The company also forms partnerships with device manufacturers and software platforms to pre-install or integrate Evernote with their products, expanding its user base.
Utilizes content marketing, digital advertising, referral programs, and partnerships for marketing. Creates educational content, blog articles, and tutorials to showcase platform value. Runs digital advertising campaigns to raise awareness and target potential users. Implements a referral program to incentivize user acquisition through referrals. Forms partnerships with device manufacturers and software platforms for pre-installation and integration. Focuses on building awareness, educating users, and expanding the user base through partnerships and referrals.
– Content marketing and tutorials help users understand and maximize the value of Evernote’s platform, improving user retention. – Digital advertising campaigns increase brand visibility and attract potential users to the platform. – The referral program leverages user networks to drive user acquisition, using incentives as a motivator. – Partnerships with device manufacturers and software platforms facilitate platform pre-installation, increasing accessibility.
Organization Structure
Evernote operates with a structure that includes teams responsible for product development, engineering, design, marketing, customer support, partnerships, and business operations. Product development and engineering teams focus on enhancing the platform’s functionality and user experience. Design teams work on the platform’s user interface and user experience design. Marketing teams handle promotional efforts and user engagement. Customer support teams assist users with inquiries and issues. Partnerships teams collaborate with device manufacturers and software platforms. Business operations teams manage financial and administrative aspects.
Employs a structure with specialized teams for product development, engineering, design, marketing, customer support, partnerships, and business operations. Ensures continuous enhancement of platform functionality and user experience. Focuses on user interface and user experience design for improved usability. Manages promotional efforts and user engagement for platform growth. Provides assistance to users through dedicated customer support teams. Collaborates with device manufacturers and software platforms through partnerships teams. Manages financial and administrative aspects through business operations teams.
– Specialized teams ensure ongoing platform development and improvement, meeting user needs and expectations. – User interface and user experience design teams prioritize usability and user satisfaction. – Marketing and customer support teams play a crucial role in user acquisition, engagement, and retention. – Partnerships teams expand the platform’s reach and accessibility through collaborations.
Competitive Advantage
Evernote’s competitive advantage lies in its comprehensive and user-friendly digital workspace for information management. The platform’s versatility makes it suitable for personal and professional use cases, catering to a broad range of users. The free version attracts a large user base, providing a substantial market for premium subscription conversions. Evernote’s partnerships with device manufacturers and software platforms increase its visibility and accessibility. The company’s continuous product development and commitment to user experience ensure it remains competitive in the note-taking and information organization market.
Derives a competitive advantage from: – Offering a comprehensive and user-friendly digital workspace. – Versatility that suits personal and professional use cases. – A large user base attracted by the free version, creating upsell opportunities. – Partnerships with device manufacturers and software platforms. – Continuous product development and user experience improvement.
– Evernote’s ability to serve both personal and professional use cases widens its user base and market potential. – The free version serves as a growth engine, attracting users who may later upgrade to premium plans. – Partnerships enhance Evernote’s accessibility and visibility, increasing its market presence. – Continuous product development maintains competitiveness and keeps the platform relevant.
A platform business model generates value by enabling interactions between people, groups, and users by leveraging network effects. Platform business models usually comprise two sides: supply and demand. Kicking off the interactions between those two sides is one of the crucial elements for a platform business model success.
A marketplace is a platform where buyers and sellers interact and transact. The platform acts as a marketplace that will generate revenues in fees from one or all the parties involved in the transaction. Usually, marketplaces can be classified in several ways, like those selling services vs. products or those connecting buyers and sellers at B2B, B2C, or C2C level. And those marketplaces connecting two core players, or more.
A network effect is a phenomenon in which as more people or users join a platform, the more the value of the service offered by the platform improves for those joining afterward.
In an asymmetric businessmodel, the organization doesn’t monetize the user directly, but it leverages the data users provide coupled with technology, thus have a key customer pay to sustain the core asset. For example, Google makes money by leveraging users’ data, combined with its algorithms sold to advertisers for visibility.
In an asymmetric businessmodel, the organization doesn’t monetize the user directly, but it leverages the data users provide coupled with technology, thus having a key customer pay to sustain the core asset. For example, Google makes money by leveraging users’ data, combined with its algorithms sold to advertisers for visibility. This is how attention merchants make monetize their business models.
The wholesale model is a selling model where wholesalers sell their products in bulk to a retailer at a discounted price. The retailer then on-sells the products to consumers at a higher price. In the wholesale model, a wholesaler sells products in bulk to retail outlets for onward sale. Occasionally, the wholesaler sells direct to the consumer, with supermarket giant Costco the most obvious example.
A retail business model follows a direct-to-consumer approach, also called B2C, where the company sells directly to final customers a processed/finished product. This implies a business model that is mostly local-based, it carries higher margins, but also higher costs and distribution risks.
A B2B2C is a particular kind of business model where a company, rather than accessing the consumer market directly, it does that via another business. Yet the final consumers will recognize the brand or the service provided by the B2B2C. The company offering the service might gain direct access to consumers over time.
The term “crowdsourcing” was first coined by Wired Magazine editor Jeff Howe in a 2006 article titled Rise of Crowdsourcing. Though the practice has existed in some form or another for centuries, it rose to prominence when eCommerce, social media, and smartphone culture began to emerge. Crowdsourcing is the act of obtaining knowledge, goods, services, or opinions from a group of people. These people submit information via social media, smartphone apps, or dedicated crowdsourcing platforms.
While the term has been coined by Andrew Lampitt, open-core is an evolution of open-source. Where a core part of the software/platform is offered for free, while on top of it are built premium features or add-ons, which get monetized by the corporation who developed the software/platform. An example of the GitLab open core model, where the hosted service is free and open, while the software is closed.
Open source is licensed and usually developed and maintained by a community of independent developers. While the freemium is developed in-house. Thus the freemium give the company that developed it, full control over its distribution. In an open-source model, the for-profit company has to distribute its premium version per its open-source licensing model.
The freemium – unless the whole organization is aligned around it – is a growth strategy rather than a businessmodel. A free service is provided to a majority of users, while a small percentage of those users convert into paying customers through the sales funnel. Free users will help spread the brand through word of mouth.
A freeterprise is a combination of free and enterprise where free professional accounts are driven into the funnel through the free product. As the opportunity is identified the company assigns the free account to a salesperson within the organization (inside sales or fields sales) to convert that into a B2B/enterprise account.
In a franchained businessmodel (a short-term chain, long-term franchise) model, the company deliberately launched its operations by keeping tight ownership on the main assets, while those are established, thus choosing a chain model. Once operations are running and established, the company divests its ownership and opts instead for a franchising model.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
