Monday.com is a cloud-based, work managementplatform created by Roy Mann, Eran Kampf, and Eran Zinman in 2012. The company was founded to overcome the challenges associated with scaling quickly.
Monday.com makes money by selling its platform to global organizations via several subscription plans. A free plan with very basic features is offered to small teams, grading to an enterprise option for large and complex organizations.
Monday.com subscription plan pricing is determined by the size of the team a business wants to onboard to the platform. Pricing also varies according to whether the business pays monthly or annually.
Monday.com is a cloud-based platform enabling companies to create their own applications and work management software. The company was founded as daPulse in 2012 by Roy Mann, Eran Kampf, and Eran Zinman.
Monday.com was created in response to the challenges the co-founders faced when endeavoring to quickly scale organisations. The story begins with former Wix executive Mann collaborating with research and development guru Zinman. The two came together to launch the platform – then known as daPulse – in February 2014. It was an instant success, allowing teams to assign tasks, mark completed work, and send email updates to app-averse colleagues.
Despite the instant success of the platform, its name was mocked by users who could not understand what the term was supposed to mean. The platform was renamed Monday.com in November 2017 which the company claimed more closely aligned with its “broader commitment to spark a dialogue on how to improve working together as humans.”
In July of 2018 and 2019, the company raised a total of $200 million across two funding rounds. Investors were impressed by revenue growth in the tens of millions and a low churn rate among paid users in more than 200 business verticals.
Monday.com makes money by selling its cloud-based platform to global organizations.
The company does this by offering several subscription plans according to the number of seats (users) the business desires. Each plan, which is listed below, has a minimum team size of three and is billed annually:
Basic ($11 per seat per month) – a simplified internal communication and project building platform for small teams. Features include unlimited viewers and items, 5GB storage, and priority customer support.
Standard ($14 per seat per month) – for businesses that wish to collaborate with external stakeholders and optimize their team processes. Extra features include guest access, Gantt charts, calendar view, and 250 automations and integrations per month.
Pro ($22 per seat per month) – to streamline complex team workflows with advanced features such as time-tracking, dependency columns, private boards and documents, and up to 25,000 monthly automations and integrations.
Enterprise (prices available on request) – a solution with enterprise-level scaling, security, and governance. Additional features include advanced analytics, multi-level permissions, tailored onboarding, and premium support.
Key Highlights
Monday.com and its Platform: Monday.com is a cloud-based work management platform developed by Roy Mann, Eran Kampf, and Eran Zinman in 2012. The platform aims to address the challenges of rapid scaling and streamline work processes.
Revenue Generation Model: Monday.com generates revenue by selling its platform to global organizations through a variety of subscription plans. These plans cater to businesses of different sizes and complexities.
Subscription Plans: The company offers several subscription plans tailored to the needs of businesses. These plans are designed based on the number of users and the complexity of the organization’s operations.
Free and Paid Plans: Monday.com provides a free plan with basic features suitable for small teams. This plan serves as an entry point to the platform and offers limited functionalities.
Paid Plans and Pricing: The platform offers multiple paid plans, each with varying levels of features and capabilities. The pricing of these plans depends on the number of users and whether the payment is made on a monthly or annual basis.
Plan Options:
Basic Plan ($11 per seat per month): Geared towards small teams, it offers simplified internal communication and project management. Features include unlimited viewers, items, 5GB storage, and priority customer support.
Standard Plan ($14 per seat per month): Suitable for businesses collaborating with external stakeholders. Provides additional features like guest access, Gantt charts, calendar view, and 250 automations/integrations per month.
Pro Plan ($22 per seat per month): Aimed at streamlining complex team workflows. Offers advanced features like time tracking, dependency columns, private boards/documents, and up to 25,000 monthly automations/integrations.
Enterprise Plan (Custom Pricing): Tailored for large-scale enterprises with advanced requirements. Includes features such as advanced analytics, multi-level permissions, tailored onboarding, and premium support.
Revenue Growth and Success: Monday.com’s platform quickly gained traction due to its usability and value to teams. The company’s growth attracted investors’ attention, leading to funding rounds in 2018 and 2019, raising a total of $200 million. The platform’s revenue growth and low churn rate contributed to its success.
Rebranding to Monday.com: The platform initially launched as daPulse but underwent a rebranding in November 2017 to become Monday.com. The name change aligned better with the platform’s vision to improve collaboration and work processes among humans.
Prominent Clients: With over 110,000 customers, Monday.com serves a wide range of businesses. Notable clients include Costco, Adobe, Uber, Unilever, and Universal Studios.
Business Model Element
Analysis
Implications
Examples
Value Proposition
Monday.com’s value proposition centers on streamlining work management. For Teams, Monday.com offers: – Visual Workflows: Intuitive tools for creating and managing work processes. – Customization: Adaptable workspaces to fit unique team needs. – Collaboration: A platform for seamless team communication and coordination. – Automation: Time-saving automation of repetitive tasks. For Businesses, Monday.com provides: – Scalability: Solutions that grow with the business. – Integration: Compatibility with popular business apps. Monday.com simplifies work management and enhances productivity.
Provides teams with intuitive work management tools. Offers customization, collaboration, and automation features for efficient workflows. Attracts businesses seeking scalable and integrated work solutions. Enhances team efficiency and productivity.
– Visual workflows improve work process visualization. – Customization adapts the platform to diverse team requirements. – Collaboration tools foster seamless team communication. – Automation saves time and reduces manual work. – Scalability accommodates business growth. – Integration options facilitate workflow compatibility.
Customer Segments
Monday.com serves various customer segments, including: 1. Small and Medium-Sized Enterprises (SMEs): Small businesses seeking streamlined work management. 2. Large Enterprises: Corporations looking to enhance team productivity. 3. Project Managers: Professionals responsible for project planning and execution. 4. Marketing and Creative Teams: Teams handling campaigns and creative projects. 5. IT and Development Teams: Technical teams managing software development and IT projects. Monday.com tailors its solutions to meet the distinct needs of each segment.
Focuses on diverse customer segments, including SMEs, large enterprises, project managers, marketing and creative teams, and IT and development teams. Customizes solutions to address the unique requirements and workflows of each group. Provides a versatile platform for various work management needs.
– Serving diverse customer segments expands Monday.com’s user base. – Tailoring solutions enhances customer satisfaction and engagement.
Distribution Strategy
Monday.com’s distribution strategy relies on digital channels, including its website, mobile app, and partnerships. Customers can access Monday.com’s platform directly through its website and mobile app. The company also forms partnerships with business app marketplaces and resellers to expand its reach. Monday.com offers trials and free plans to attract users and encourages self-service sign-ups.
Primarily utilizes digital channels, including its website and mobile app, for distribution. Offers access directly through its platform. Forms partnerships with business app marketplaces and resellers to extend its reach. Provides trials and free plans to attract users and promote self-service sign-ups. Ensures accessibility and convenience for users.
– Digital channels provide easy access to the platform. – Partnerships with app marketplaces and resellers broaden the user base. – Trials and free plans encourage user adoption and engagement. – Self-service sign-ups streamline the onboarding process.
Revenue Streams
Monday.com generates revenue primarily through subscription-based pricing: 1. Monthly and Annual Subscriptions: Charges customers based on the number of users and features included. 2. Enterprise Plans: Offers customized solutions for large enterprises with advanced requirements. 3. Integration Fees: May charge fees for premium integrations and add-ons. Diverse revenue streams contribute to the company’s income.
Relies on revenue streams from: 1. Monthly and annual subscriptions based on user count and features. 2. Enterprise plans tailored to large enterprises with specialized needs. 3. Integration fees for premium integrations and add-ons. Diversifies income sources through subscription pricing, enterprise plans, and integration fees.
– Subscription fees provide recurring revenue. – Enterprise plans cater to larger clients with unique demands. – Integration fees add to the platform’s financial stability.
Marketing Strategy
Monday.com’s marketing strategy involves digital advertising, content marketing, and partnerships. The company uses digital marketing channels like online advertising, social media, and email marketing to reach potential customers. Monday.com creates and shares valuable content, including blog articles, webinars, and case studies, to showcase its solutions. The company also forms partnerships with other software providers to expand its ecosystem.
Utilizes digital advertising, content marketing, and partnerships for marketing. Targets potential customers through online advertising, social media, and email marketing. Provides educational content such as blog articles, webinars, and case studies. Forms strategic partnerships with software providers to broaden its ecosystem. Creates a compelling presence in the work management space.
– Digital marketing effectively reaches potential customers online. – Content marketing demonstrates the value of its solutions. – Partnerships expand the ecosystem and user base. – A strong presence in the work management sector attracts customers.
Organization Structure
Monday.com’s organizational structure includes teams dedicated to technology development, customer support, marketing, partnerships, and sales. Technology development teams focus on enhancing the platform’s features and functionality. Customer support teams assist users with inquiries and issues. Marketing teams promote Monday.com’s services, while partnerships and sales teams collaborate with other software providers and customers. This structure supports innovation, customer satisfaction, and ecosystem growth.
Employs specialized teams for technology development, customer support, marketing, partnerships, and sales. Enhances platform features and functionality through technology development teams. Assists users with inquiries and issues through customer support teams. Promotes services through marketing teams. Collaborates with other software providers and customers through partnerships and sales teams. Supports innovation, customer satisfaction, and ecosystem growth.
– Specialized teams drive innovation and platform enhancement. – Customer support builds trust and addresses user needs. – Marketing promotes services effectively. – Partnerships and sales teams expand the ecosystem and user base.
Competitive Advantage
Monday.com’s competitive advantage stems from its user-friendly interface, flexibility, customization, automation features, and a growing ecosystem. The platform’s intuitive interface attracts users seeking easy work management solutions. Its flexibility and customization options make it suitable for diverse workflows. Automation features save time and enhance productivity. Monday.com’s partnerships with software providers expand its ecosystem, providing users with a comprehensive work management solution.
Derives a competitive advantage from: – A user-friendly interface for easy adoption. – Flexibility and customization options to fit various workflows. – Automation features that improve efficiency. – A growing ecosystem through partnerships with software providers. Sets itself apart in the work management industry by offering a versatile, user-friendly, and comprehensive solution.
– An intuitive interface simplifies platform usage. – Customization options adapt to unique workflow requirements. – Automation enhances efficiency and productivity. – A growing ecosystem provides a holistic work management solution.
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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.
