Wix is an Israeli provider of cloud-based web development services and is perhaps best known for its drag-and-drop website builder. Founded in 2006, the vision was to empower anyone to build their own site without coding, thus creating a drag-and-drop solution. Wix operates on a freemium model to attract customers to its platform, where those are prompted to enroll in one of its subscription plans.
Wix is an Israeli provider of cloud-based web development services and is perhaps best known for its drag-and-drop website builder.
The company was founded by Avishai Abrahami, Nadav Abrahami, and Giora Kaplan in Tel Aviv in 2006. The trio got the idea for Wix after trying to build a website for an unrelated business idea.
They noted that the process was costly, complex, time-consuming, and ultimately impossible for many consumers.
From there, a vision to empower anyone to create a website without coding or design skills was born.
Wix was a flash-based website builder initially, launching to beta users in 2007 and then globally the following year. By August 2013, the platform had already signed up 34 million users.
Today, Wix provides a high-quality platform to over 200 million users worldwide. These users are mostly entrepreneurs, designers, photographers, musicians, and restauranteurs.
Value Proposition:
User-Friendly Website Builder: Wix offers a user-friendly website builder that allows individuals and businesses to create professional-looking websites and online stores quickly and easily, without the need for coding or design skills, enabling users to bring their creative visions to life with customizable templates, drag-and-drop editing tools, and intuitive features.
Customizable Templates: Wix provides a vast selection of customizable templates for various industries, niches, and purposes, allowing users to choose a design that suits their brand identity and objectives, and personalize it with their own content, images, colors, and fonts to create a unique and visually appealing website or online store.
Drag-and-Drop Editing Tools: Wix offers drag-and-drop editing tools that enable users to customize and modify their website’s layout, structure, and content effortlessly, allowing for easy rearrangement of elements, addition of new sections, and editing of text, images, and multimedia components to achieve the desired look and functionality.
Mobile Optimization: Wix ensures that websites created on its platform are fully optimized for mobile devices, providing a seamless and responsive browsing experience across desktops, tablets, and smartphones, allowing users to reach and engage with their audience on any device or screen size.
Integrated Features and Apps: Wix offers a wide range of integrated features and third-party apps that enhance the functionality and performance of websites and online stores, including e-commerce tools, marketing solutions, booking systems, social media integrations, analytics tools, and more, empowering users to expand their website’s capabilities and meet their business goals.
Wix revenue generation
Wix operates on a freemium model to attract customers to its platform.
However, much greater functionality can be accessed by upgrading to a paid subscription plan.
Extra features include more storage and bandwidth and the ability to remove Wix advertisements and connect to a private domain.
Following is a look at the four paid options for individuals:
Combo ($10/month) – for private users desiring a simple solution.
Unlimited ($14/month) – for entrepreneurs and freelancers.
Pro ($19/month) – for small business owners who want a complete online branding package.
VIP ($27/month) – a combination of the above three plans with priority customer support and 35GB storage space.
There are also three business plans:
Business Basic ($18/month) – for businesses that only need a system to accept online payments.
Business Unlimited ($28/month) – with tools to grow sales such as social channels and marketplace selling.
Business VIP ($38/month) – offering a full suite of products for a complete business solution.
Ascend by Wix
Ascend by Wix is a customer relationship management (CRM) tool allowing businesses to better connect with their target audience. Primarily this is an email marketing system with automations and advanced strategies.
Here, there are also three plans to choose from:
Ascend Basic ($10/month).
Ascend Professional ($24/month).
Ascend Unlimited ($49/month).
Logo maker
Wix also offers professional logo creation tools for websites, social media, and merchandise.
While users can create a logo for free, they will need to pay a one-time fee to download it. The fee for a basic logo is $20. But to access extras such as social media logos, favicons, and watermarks, the fee is $50.
Wix App Market
The Wix App Market allows users to select from over 250 web apps to integrate with their site.
These apps encompass a plethora of topics, including email marketing, push notifications, drop shipping, event promotion, and interactive video creation.
While many of the apps are free, Wix takes a cut of all premium app purchases between its users and third-party app developers.
Marketing Strategy:
Digital Advertising Campaigns: Wix conducts digital advertising campaigns across various online channels, including search engines, social media platforms, display networks, and affiliate marketing channels, targeting entrepreneurs, small businesses, and individuals interested in creating websites and online stores.
Content Marketing: Wix invests in content marketing strategies to attract and engage its target audience, producing informative and educational content, including blog posts, tutorials, guides, and video tutorials, to showcase the benefits of using the platform and provide valuable insights and resources to users.
Social Media Engagement: Wix actively engages with its audience on social media platforms, including Facebook, Twitter, Instagram, LinkedIn, and YouTube, sharing user-generated content, success stories, design inspiration, product updates, and promotional offers to build brand awareness and foster community engagement.
Referral Programs: Wix incentivizes user referrals and word-of-mouth marketing through referral programs and affiliate partnerships, offering rewards, discounts, and incentives to existing users who refer new customers to the platform, leveraging the power of referrals to drive user acquisition and customer growth.
Email Marketing: Wix utilizes email marketing campaigns to nurture leads, communicate with users, and promote its products and services, sending personalized newsletters, product updates, special offers, and educational content to subscribers’ inboxes to maintain engagement and encourage conversions.
Distribution Channels:
Website and Online Platform: Wix distributes its website builder and e-commerce solutions through its official website and online platform, allowing users to sign up, create accounts, and access the platform’s tools and features directly through web browsers on desktop computers and mobile devices.
Mobile Applications: Wix offers mobile applications for iOS and Android devices, available for download from the Apple App Store and Google Play Store, enabling users to create, edit, and manage their websites and online stores on the go, providing a convenient and mobile-friendly user experience.
Affiliate Partnerships: Wix collaborates with affiliate partners, resellers, and affiliate marketers to promote its platform and services to a wider audience, partnering with web hosting providers, domain registrars, marketing agencies, and online influencers to reach potential users and drive customer acquisition.
Third-Party Platforms: Wix may distribute its products and services through third-party platforms, marketplaces, and distribution channels, including app stores, online marketplaces, web hosting providers, and digital agencies, expanding its reach and accessibility to users worldwide through strategic partnerships and integrations.
Customer Support and Sales Teams: Wix employs customer support and sales teams to assist users with account setup, technical support, and product inquiries, providing personalized assistance and guidance to new users, existing customers, and potential subscribers through online chat, email, and phone support channels.
Key takeaways:
Wix is an Israeli web development service provider. It was founded in 2013 by Avishai Abrahami, Nadav Abrahami, and Giora Kaplan after the trio experienced difficulty in building a website for an unrelated start-up.
Wix operates on a freemium model. But for increased functionality, individuals and businesses can sign up for one of six paid plans.
Wix also offers a customer relationship management tool called Ascend by Wix and a premium logo creation tool. Lastly, the company likely takes a percentage of each premium app sale on the Wix App Market.
Key highlights of Wix’s business model:
Value Proposition:
User-friendly website builder with a drag-and-drop interface.
Versatile templates and features catering to various industries.
Cost-effective plans including a free option.
Scalability suitable for individuals, businesses, and e-commerce.
Mobile optimization and integrated features enhance functionality.
Customer Segments:
Individuals, small businesses, e-commerce ventures, and agencies.
Distribution Strategy:
Primarily through its website, partnerships, and word-of-mouth marketing.
Revenue Streams:
Subscription plans, domain registration, additional features, Ascend by Wix CRM tool, logo maker, and the Wix App Market.
Marketing Strategy:
Utilizes digital advertising, content marketing, social media engagement, referral programs, and email marketing.
Distribution Channels:
Website, mobile apps, affiliate partnerships, third-party platforms, and customer support and sales teams.
Origin Story:
Founded in 2006 by Avishai Abrahami, Nadav Abrahami, and Giora Kaplan.
Aims to simplify website creation for everyone after experiencing the complexity firsthand.
Business Model Element
Analysis
Implications
Examples
Value Proposition
Wix’s value proposition centers around providing a user-friendly, all-in-one website building platform. Key elements of its value proposition include: – Ease of Use: Intuitive drag-and-drop interface for website creation. – Versatility: Wide range of templates and features for various website types. – Cost-Effective: Affordable plans, including a free option. – Scalability: Suitable for individuals, businesses, and e-commerce. Wix aims to empower users to create professional websites with minimal technical expertise.
Offers a user-friendly platform that simplifies website creation. Provides versatility with a diverse selection of templates and features. Appeals to users seeking cost-effective solutions, including free plans. Scales to accommodate individuals, businesses, and e-commerce. Attracts users looking for a hassle-free website building experience. Empowers users to establish an online presence.
– Drag-and-drop interface simplifies website creation. – Offers a wide range of templates and features. – Provides cost-effective plans, including a free option. – Scales to accommodate individuals and businesses. – Attracts users seeking a hassle-free website building experience. – Empowers users to establish an online presence.
Customer Segments
Wix serves various customer segments, including: 1. Individuals: Personal websites, blogs, portfolios, and online resumes. 2. Small Businesses: Local businesses, restaurants, and service providers. 3. E-commerce: Online stores and product-based businesses. 4. Agencies: Web design and digital marketing agencies. Wix caters to a broad range of users, from individuals looking to create a personal website to businesses in need of an online presence.
Focuses on diverse customer segments with varying website needs. Customizes solutions to meet the specific requirements of individuals, small businesses, e-commerce ventures, and agencies. Offers a versatile platform suitable for different website types and industries. Provides tools and features for various stages of website development. Serves as an all-in-one website building solution for multiple stakeholders.
– Serving diverse customer segments broadens the user base. – Customizes solutions for different website types and industries. – Offers versatility for various website development stages. – Provides tools for a wide range of users and businesses. – Serves as an all-in-one website building solution for multiple stakeholders.
Distribution Strategy
Wix’s distribution strategy relies on its website, partnerships, and word-of-mouth marketing. Users can access Wix’s platform directly through its website, where they can create and manage their websites. The company also collaborates with domain registrars and hosting providers to offer integrated services. Additionally, Wix benefits from positive word-of-mouth marketing from satisfied users who recommend the platform to others.
Utilizes its website as a direct access point to its website building platform, ensuring accessibility. Collaborates with domain registrars and hosting providers for integrated services. Relies on satisfied users to promote the platform through word-of-mouth marketing. Offers a straightforward and user-friendly onboarding process. Leverages partnerships for expanding its user base.
– Website serves as a direct access point. – Collaborates with domain registrars and hosting providers. – Relies on word-of-mouth marketing from satisfied users. – Offers a straightforward and user-friendly onboarding process. – Leverages partnerships for expanding its user base.
Revenue Streams
Wix generates revenue primarily through subscription plans, domain registration, and additional features. Its primary revenue streams include: 1. Subscription Plans: Paid plans offering premium features and services. 2. Domain Registration: Fees for registering and renewing domain names. 3. Additional Features: Charges for premium templates, e-commerce tools, and other add-ons. These revenue streams collectively contribute to the sustainability of the platform.
Relies on subscription plans, domain registration, and additional features as primary sources of income. Earns revenue from paid plans that offer premium features and services. Gains fees from domain registration and renewal. Earns income from users purchasing premium templates, e-commerce tools, and add-ons. Prioritizes these revenue streams for sustaining operations and supporting its business model. Utilizes a subscription-based and feature-based revenue model.
– Subscription plans provide a scalable income stream. – Domain registration fees contribute to revenue. – Additional features generate income from premium tools and add-ons. – Prioritizes these revenue streams for its business model. – Utilizes a subscription-based and feature-based revenue model.
Marketing Strategy
Wix’s marketing strategy includes online advertising, content marketing, affiliate programs, and community engagement. The company advertises its platform through online channels, social media platforms, and search engine marketing to reach a broad audience of potential users. Produces and shares valuable content, including blog posts, tutorials, and webinars, to educate and attract users. Collaborates with affiliates to promote the platform. Engages with its user community to foster advocacy and support.
Utilizes online advertising and social media to reach a broad audience interested in website building. Produces educational content to attract and retain users. Collaborates with affiliates to expand its reach and user base. Actively engages with its user community for advocacy and support. Prioritizes community-driven marketing and education. Leverages partnerships and user-generated content for marketing efforts.
– Online advertising and social media reach a broad audience. – Content marketing educates and attracts users. – Collaboration with affiliates expands the user base. – Engagement with the user community fosters advocacy. – Prioritizes community-driven marketing and education. – Leverages partnerships and user-generated content for marketing.
Organization Structure
Wix’s organizational structure includes teams dedicated to technology development, customer support, marketing, sales, and community engagement. Technology development teams focus on platform enhancements and feature development. Customer support teams provide assistance and support to users. Marketing teams handle promotional efforts. Sales teams cater to premium and enterprise customers. Community engagement teams foster collaboration with the user community. This structure supports platform innovation, marketing effectiveness, customer satisfaction, community engagement, and operational efficiency.
Employs specialized teams for technology development, customer support, marketing, sales, and community engagement. Prioritizes platform enhancements and feature development through technology teams. Provides customer assistance and support through dedicated teams. Handles promotional efforts effectively through marketing teams. Serves premium and enterprise customers with sales teams. Fosters collaboration with the user community through community engagement teams. Supports platform innovation, marketing effectiveness, customer satisfaction, community engagement, and operational efficiency.
– Specialized teams drive platform innovation and feature development. – Provides customer assistance and support. – Handles promotional efforts effectively. – Serves premium and enterprise customers with dedicated sales teams. – Fosters collaboration with the user community. – Supports platform innovation, marketing, and operational efficiency.
Competitive Advantage
Wix’s competitive advantage lies in its user-friendliness, versatility, affordability, scalability, and strong community support. User-Friendliness: Offers an intuitive drag-and-drop interface for easy website creation. Versatility: Provides a wide range of templates and features for various website types. Affordability: Offers cost-effective plans, including a free option. Scalability: Scales to accommodate both individuals and businesses. Community Support: Benefits from a supportive user community that contributes to platform growth. Wix stands out as a user-centric and community-driven website building platform.
Derives a competitive advantage from: – Providing an intuitive drag-and-drop interface for easy website creation. – Offering versatility with a diverse selection of templates and features. – Providing cost-effective plans, including a free option. – Scaling to meet the needs of both individuals and businesses. – Benefiting from a supportive user community that contributes to platform growth. Stands out as a user-centric and community-driven website building platform.
– Offers an intuitive drag-and-drop interface for easy website creation. – Provides a wide range of templates and features. – Offers cost-effective plans, including a free option. – Scales to accommodate both individuals and businesses. – Benefits from a supportive user community contributing to platform growth. – Stands out as a user-centric and community-driven website building platform.
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 business model. 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 business model (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.
