wix-business-model

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

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.

Origin Story

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.

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:

  1. Combo ($10/month) – for private users desiring a simple solution.
  2. Unlimited ($14/month) – for entrepreneurs and freelancers.
  3. Pro ($19/month) – for small business owners who want a complete online branding package.
  4. VIP ($27/month) – a combination of the above three plans with priority customer support and 35GB storage space.

There are also three business plans:

  1. Business Basic ($18/month) – for businesses that only need a system to accept online payments.
  2. Business Unlimited ($28/month) – with tools to grow sales such as social channels and marketplace selling.
  3. 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:

  1. Ascend Basic ($10/month).
  2. Ascend Professional ($24/month).
  3. 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.

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.

Read Next: How Does Shopify Make Money How Does WordPress Make Money How Does Squarespace Make Money How Does HubSpot Make Money.

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Published by

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"