How Does Kahoot Make Money? The Kahoot Business Model In A Nutshell

Kahoot is a Norwegian game-based learning platform founded in 2012 by Johan Brand, Jamie Brooker, and Morten Versvik. It is based on a university-developed interactive learning game called Lecture Quiz.
Kahoot is free to use for players. Instead, the company makes money by selling access to various adaptations of the game fit for educational or enterprise contexts. Prices depend on the number of game participants and the level of functionality.
Kahoot also makes money by licensing its gaming platform to third-party publishers that want a grow an engaged audience.

Table of Contents

Kahoot origin story

Kahoot is a Norwegian game-based learning platform used in educational and other institutions.

The platform was founded in 2012 by Johan Brand, Jamie Brooker, and Morten Versvik in a joint project with the Norwegian University of Science and Technology (NTNU).

The idea for the platform came from NTNU Professor Alf Inge Wang, who in 2006 developed an interactive learning game called Lecture Quiz.

The game was based on research conducted by Versvik – a student of Wang’s at the time who happened to be completing his master’s thesis.

Essentially, Wang and Versvik designed the game to be based on social learning.

Students gather around a common screen with their devices and connect to a game with a specific PIN.

They then use their devices to answer questions, with higher points awarded to students who give a correct answer quickly.

Wang and the team refined Lecture Quiz over the following six years before the co-founders were able to raise funding and rebrand the game as Kahoot.

The beta version was launched in Texas in March 2013, with the game spreading virally across North America and the world thereafter.

Since it was launched, some 6 billion players have utilized the Kahoot platform.

In addition to schools and universities, the game is also used during corporate training sessions and sporting or cultural events.

The game can be found in over 200 countries and 87% of the world’s global top 500 universities.

Revenue for 2021 is forecast to be in the order of $90 to $100 million.

Value Proposition:

Engaging Learning: Kahoot provides an engaging and interactive learning experience for students, making education more enjoyable and effective. Its game-based approach encourages active participation and knowledge retention.
Versatile Usage: Kahoot’s platform is versatile, serving educational institutions, businesses, and events. It offers a range of features suitable for classrooms, corporate training, presentations, and large-scale events.
Global Reach: With a presence in over 200 countries and adoption in 87% of the world’s top 500 universities, Kahoot offers a global platform for learning and engagement, connecting educators and learners worldwide.
Scalable Plans: Kahoot offers flexible subscription plans tailored to the needs of educational institutions and businesses of all sizes. Users can choose plans based on the number of participants and desired features.
Content Licensing: Through its Publisher program, Kahoot enables content creators to gamify their materials and engage their audiences using Kahoot games, expanding its reach beyond its platform.

Customer Segments:

Educational Institutions: Schools, colleges, and universities are major customers of Kahoot. Teachers and educators use the platform to create interactive quizzes, assessments, and lessons to enhance student engagement and learning outcomes.
Corporate Clients: Businesses utilize Kahoot for employee training, presentations, and team-building activities. Kahoot’s platform adds an element of gamification to corporate learning and development.
Event Organizers: Event organizers leverage Kahoot to make events more interactive and engaging. It is used in conferences, workshops, and seminars to facilitate audience participation and knowledge sharing.
Content Creators: Publishers, brands, and content creators are part of Kahoot’s ecosystem through its Publisher program. They license Kahoot games to gamify their content and engage their audiences.

Distribution Strategy:

Online Platform: Kahoot operates as a web-based platform, making it easily accessible to users globally. Educators, trainers, and event organizers can create accounts and use Kahoot’s services online.
Mobile Apps: Kahoot offers mobile apps for iOS and Android devices, enabling users to access and participate in Kahoot games from their smartphones and tablets.
Integration Partnerships: Kahoot partners with educational technology providers, learning management systems, and productivity platforms to integrate its services seamlessly into existing educational and corporate ecosystems.

Marketing Strategy:

Educational Partnerships: Kahoot collaborates with educational institutions and organizations to promote its platform among educators and students. It offers resources, case studies, and success stories to demonstrate the benefits of gamified learning.
Corporate Outreach: For corporate clients, Kahoot markets its platform as a tool for employee engagement, training, and team building. It showcases how gamification can enhance corporate learning and development.
Event Promotion: Event organizers are targeted with the promise of making their events more interactive and memorable through Kahoot’s engagement features. Case studies and event-specific use cases are highlighted.
Content Creator Engagement: Through its Publisher program, Kahoot attracts content creators and publishers by offering a gamification solution for their content. It promotes the benefits of gamified content engagement.
Community Building: Kahoot nurtures a community of educators, trainers, and event organizers through forums, social media, and user-generated content. It encourages user-generated Kahoot games and fosters a sense of belonging among its users.

Kahoot revenue generation

Kahoot operates under the freemium business model. In most cases, the platform is free to use for the players themselves.

However, the company does charge educational institutions and corporate clients for access to the game via multiple subscription plans.

Kahoot! 360

Kahoot! 360 allows businesses to make training, presentations, events, and employee collaboration more fun and engaging.

There are several plans here:

Kahoot! 360 Standard ($17 per host per month or $204 billed annually) – great for engaging small audiences and evaluating knowledge retention.
Kahoot! 360 Presenter ($39 per host per month or $468 billed annually) – best suited for delivering presentations during meetings with up to 50 participants per session.

In both the Standard and Presenter plans, businesses can receive a discount on the purchase if they require at least three separate licenses. This option is called Kahoot! 360 for Teams.

Kahoot! 360 for Enterprises – a robust and security-conscious enterprise solution for employee engagement across meetings, presentations, and training sessions. Prices are available on request.
Kahoot! Event Bronze ($250) – for customers who want to hold a smaller, one-time event for up to 100 attendees.
Kahoot! Event Silver ($500) – for customers who want to run an event for up to 2000 attendees. Extra features include word clouds, customizable branding, and the ability to track player progress and participation.
Kahoot! Event Gold ($750) – encompassing the functionality from the Silver plan plus professional onboarding support.

Kahoot! for schools

In an educational setting, Kahoot! empowers teachers to motivate their students, increase class participation, and assess learning.

Below is a look at the Kahoot! for schools plans:

Basic (free) – for up to 50 players per game.
Kahoot! Pro ($3 per teacher per month or $36 billed annually) – for up to 100 players per game. Additional features include polls, puzzles, multiple choice answers, advanced slide layouts, and a premium image library.
Kahoot! Premium ($6 per teacher per month or $72 billed annually) – a more customizable plan for up to 200 players per game.
Kahoot! Premium+ ($9 per teacher per month or $108 billed annually) – featuring unlimited teacher groups, lesson plans, apps, and as many as 2000 players per game.
Kahoot! EDU ($12 per teacher per month or $144 billed annually) – this plan includes advanced tools for teachers and administrators, including school branding, brainstorming, and learning progress reports. There is also the ability to connect the entire school or district to Kahoot through a single site license. In this case, the institution must request a custom quote.

Licensing

The company also makes money by licensing its content to third parties as part of its Kahoot! Publisher program.

This allows publishers, brands, and other content creators to incorporate Kahoot games into their respective platforms and gamify their content.

The Kahoot! Publisher program has two options:

P1 ($500 per brand per month, billed annually) – for up to 150,000 players per year.
P2 ($1000 per brand per month, billed annually) – for clients wishing to engage and grow an audience of up to 1 million players per year. Importantly, the P2 plan allows Kahoot games to be added to a commercial offering.

Key Highlights

Founding and Origin Story: Kahoot is a Norwegian game-based learning platform founded in 2012 by Johan Brand, Jamie Brooker, and Morten Versvik. It originated from a university-developed interactive learning game called Lecture Quiz.
Business Model: Kahoot offers free access to players and generates revenue by selling subscriptions to educational institutions and corporate clients. They also make money by licensing their gaming platform to third-party publishers.
Global Reach: Kahoot is used in over 200 countries and adopted by 87% of the world’s top 500 universities. It is utilized in schools, universities, corporate training, and events.
Value Proposition: Kahoot provides engaging and interactive learning experiences, versatility for various user segments, scalability in subscription plans, and content licensing options through its Publisher program.
Customer Segments: Kahoot serves educational institutions, corporate clients, event organizers, and content creators through its platform.
Distribution Strategy: Kahoot is accessible through its web-based platform and mobile apps. It also partners with educational technology providers and integrates its services into existing ecosystems.
Marketing Strategy: Kahoot collaborates with educational institutions, markets itself as a tool for corporate engagement, promotes event interactivity, engages content creators, and fosters a user community.
Revenue Generation: Kahoot operates under the freemium model, offering free access to players and charging educational institutions and corporate clients for premium features. They offer various subscription plans tailored to different needs.
Kahoot! 360: Kahoot! 360 offers plans for businesses to enhance training, presentations, and events. It includes options for small and large audiences, with pricing variations.
Kahoot! for Schools: Kahoot! offers plans for educators to motivate students and assess learning, with options for varying class sizes and additional features.
Licensing: Kahoot generates revenue by licensing its content through the Kahoot! Publisher program, allowing third parties to gamify their content using Kahoot games.

Element	Description
Value Proposition	Kahoot! offers a compelling value proposition for its users, including: – Engaging Learning: Providing an interactive and gamified platform that makes learning fun and engaging. – Knowledge Assessment: Offering tools to create quizzes, surveys, and polls for assessing knowledge and gathering feedback. – Accessibility: Making education accessible anytime, anywhere, and on various devices. – Social Learning: Encouraging collaboration and social learning through multiplayer quizzes and challenges. – Customization: Allowing educators and businesses to tailor content to their specific needs. – Data Insights: Providing analytics and data insights to track progress and performance. – Content Library: Offering a vast library of user-generated quizzes and educational content. – Community: Fostering a community of educators, learners, and content creators.
Core Products/Services	Kahoot!’s core products and services encompass: – Kahoot! Platform: The primary platform for creating, sharing, and playing interactive quizzes and games. – Kahoot! App: Mobile applications for iOS and Android devices, enabling on-the-go learning and engagement. – Kahoot! for Business: A tailored solution for corporate training, employee engagement, and presentations. – Kahoot! Plus: A premium subscription offering enhanced features, such as no ads, faster gameplay, and advanced reports. – Kahoot! Academy: A platform for educators to access and share curriculum-aligned content. – Kahoot! Content Marketplace: A marketplace for educators to purchase and sell high-quality learning content. – Kahoot! Certified Educator: A program certifying educators in effectively using Kahoot! for teaching. – Kahoot! for Schools: A subscription service designed for schools with additional features and administrative tools. – Kahoot! for Family: A family-friendly version for at-home learning and entertainment.
Customer Segments	Kahoot! serves a range of customer segments, including: – Educators and Teachers: Primary and secondary school teachers, university professors, and instructors using Kahoot! for classroom engagement and assessment. – Students: Learners of all ages, from elementary school to higher education, who use Kahoot! for study and review. – Corporate Trainers: Businesses and organizations using Kahoot! for employee training, onboarding, and engagement. – Content Creators: Individuals and organizations creating and selling educational content on the platform. – Parents: Families using Kahoot! for homeschooling, family quizzes, and entertainment. – Administrators: School and district administrators managing Kahoot! accounts and usage. – Event Organizers: Professionals using Kahoot! for interactive presentations and events. – Gamers: Users interested in gaming and learning experiences on the platform. – Educational Institutions: Schools, universities, and educational institutions integrating Kahoot! into their curricula.
Revenue Streams	Kahoot! generates revenue through various revenue streams: – Kahoot! for Schools: Charging schools and educational institutions a subscription fee for premium features and administrative tools. – Kahoot! Plus: Offering a premium subscription with enhanced features to individual users. – Kahoot! for Business: Providing corporate customers with subscription plans for training and engagement. – Content Marketplace: Earning a commission from content creators for content sales on the marketplace. – Kahoot! Academy: Offering a premium version with additional features and revenue sharing with content creators. – Kahoot! Ads: Displaying advertisements to free users, generating ad revenue. – Sponsored Content: Collaborating with brands and organizations to create sponsored quizzes and content. – Professional Development: Offering paid certifications and training programs for educators. – Event and Presentation Licensing: Licensing Kahoot! for events and presentations. – API Access: Providing access to Kahoot!’s API for integration into third-party applications and services.
Distribution Strategy	Kahoot! employs a strategic distribution strategy to reach educators, students, and corporate users: – Online Platform: Offering a user-friendly web platform for creating, sharing, and playing Kahoot! games and quizzes. – Mobile Apps: Providing mobile applications for iOS and Android devices for learning on the go. – Educator Community: Building a community of educators who share and access curriculum-aligned content on Kahoot! Academy. – School Partnerships: Collaborating with schools and educational institutions to integrate Kahoot! into curricula. – Corporate Sales: Engaging with businesses and organizations to promote Kahoot! for corporate training and presentations. – Content Marketplace: Attracting content creators to publish and sell their educational content on the platform. – Social Media: Leveraging social media channels to engage with users, share content, and promote Kahoot! events. – Email Marketing: Sending newsletters and updates to educators and users. – In-App Promotion: Encouraging users to explore premium features and subscriptions within the app. – Educational Conferences: Participating in educational conferences and events to showcase Kahoot!’s offerings.