monday-com-business-model

How Does Monday.com Make Money? Monday.com Business Model In A Nutshell

  • Monday.com is a cloud-based, work management platform 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 origin story

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.

Today, the company employs more than 700 people and can boast approximately 110,000 customers. Some of the more notable clients include Costco, Adobe, Uber, Unilever, and Universal Studios.

Monday.com revenue generation

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:

  1. 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.
  2. 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.
  3. 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.
  4. 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.

Read More: Cloud Business ModelsIaaS vs PaaS vs SaaSAIaaS Business Model.

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Gennaro Cuofano

Gennaro is the creator of FourWeekMBA which reached over a million business students, executives, and aspiring entrepreneurs in 2020 alone | He is also Head of Business Development for a high-tech startup, which he helped grow at double-digit rate | Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy | Visit The FourWeekMBA BizSchool | Or Get The FourWeekMBA Flagship Book "100+ Business Models"