How Does Zoom Make Money? [Zoom Business Profile]

 

Screenshot of Zoom homepage

Source:zoom.us

Zoom Overview

Zoom is a hugely popular cloud-based video communications platform that allows people to connect with one another via video and audio conferencing, content sharing, chat, and webinars. 

The platform’s popularity grew exponentially with the Covid 19 global pandemic forcing most countries into lockdowns and remote working. According to the BBC, the app “has been downloaded more than 50 million times on the Google app store alone as a global lockdown sends people in desperate search of digital ways to stay in touch with work colleagues, friends, and family.”

To help ease the transition from offices to remote working, Zoom removed the 40-minute limit on free meetings in China and across 25 other countries greatly impacted by the outbreak, including the United States, Australia, Canada, Germany, Italy, the United Kingdom, and more.

 

Company Info

Now considered a household name, Zoom or Zoom Video Communications, Inc. was founded in 2011 by Eric Yuan.

The company’s description on LinkedIn describes the platform’s services and functionality as the following: 

Zoom helps businesses and organizations bring their teams together in a frictionless environment to get more done. Our easy, reliable cloud platform for video, phone, content sharing, and chat runs across mobile devices, desktops, telephones, and room systems.

According to Zoom’s LinkedIn page:

  • In the U.S, Zoom offices are located in Denver, Santa Barbara, Kansas City, and Atlanta.
  • Abroad, offices are situated in Amsterdam, Paris, London, Mumbai, Tokyo (remote), and Sydney.
  • Their headquarters is located in San Jose, California.
  • The company currently has 3,979 employees listed on LinkedIn. 

 

 

How Does Zoom Make Money? 

Zoom Video Communications, Inc. operates on a freemium model, meaning that it provides free but limited access to its services, e.g. users may host group meetings with a maximum of 100 participants and for a duration of 40 minutes only. 

In order to circumvent the limitations and benefit from additional features, users have to subscribe to one of Zoom’s paid plans (listed below). 

Here is an individual breakdown of each Zoom Pricing Plan:

Zoom Meetings

  • “Basic” is free of charge. 
  • “Pro” costs $14.99 per month or $149.90 per month if billed annually.
  • “Business” costs $19.99 per month or $199.90 per month if billed annually.
  • “Enterprise” costs $19.99 per month and per license or $199.90 per month if billed annually.

Optional Add-on Plans

The Audio Plan starts at $100 per month or $1200 per year and is billed based on the rates per call per country.

  • All paid plans come with local toll numbers, but Audio Plan allows you to add Call Out global Toll-free, and local dial-in for premium countries
  • No charge to your participants to call in from any device
  • Easily select one or multiple countries for Toll-free call-in

Large Meetings start at $50 per month.

  • Increase participants capacity for your meetings plan
  • Include up to 500 or 1,000 interactive participants in a meeting
  • Monthly and annual billing options available

Cloud Storage starts at $40 per month or $480 per year.

  • Store, stream, and download your video recordings from the Zoom Cloud
  • MP4 or M4A file formats available
  • Storage options include up to 3TB/month

 

Screenshot of zoom phone feature

Source:zoom.us

Zoom Phone 

  • “Pay As You Go”(US & Canada metered) costs $10 per month, per user and $120 per user if billed annually.
  • “Unlimited Regional Calling” costs $15  per month, per user and $180 per user if billed annually.
  • “Local Calling in 40+ countries” costs $20 per month, per user and $240 per user if billed annually.

Optional Add-on Plans

The International Calling Add-On starts at $10 per month or $120 per year.

  • Add-on plan that can be purchased with any of the unlimited calling plans
  • It provides unlimited international calling to the following countries/territory: US, Canada, UK, Ireland, Australia, New Zealand, Austria, Denmark, France, Germany, Italy, Portugal, Spain, Sweden, Belgium, Netherlands, Switzerland & Puerto Rico.

Additional Phone Numbers start at $5 per month or $60 per year.

  • Add additional local, toll-free, or international premium numbers to your plan (support for a local phone number in Hong Kong SAR for an additional cost)
  • Use the additional number as the designated company number or a personal direct line.

 

Screenshot of Zoom webinars feature

Source:zoom.us

Zoom Video Webinar

  • For 100 attendees, the cost is $40 per month or  $400 if billed annually
  • For 500 attendees, the cost is $140 per month or $1,400 if billed annually
  • For 1000 attendees, the cost is $340 per month or $3,400 if billed annually
  • For 3000 attendees, the cost is $990 per month or $9,900 if billed annually
  • For 5000 attendees, the cost is $2,490 per month or $24,900 if billed annually
  • For 10,000 attendees,the cost is $6,490 per month or $64,900 if billed annually

Note: To host webinars with up to 50,000 attendees, users need to contact the Zoom sales team.

Optional Add-on Plans

The Audio Plan starts at $100 per month or $1200 per year and is billed based on the rates per call per country.

  • All paid plans come with local toll numbers, but Audio Plan allows you to add Call Out global Toll-free, and local dial-in for premium countries
  • No charge to your participants to call in from any device
  • Easily select one or multiple countries for Toll-free call-in

Cloud Storage starts at $40 per month or $480 per year.

  • Store, stream, and download your video recordings from the Zoom Cloud
  • MP4 or M4A file formats available
  • Storage options include up to 3TB/month

 

Screenshot of Zoom rooms feature

Source:zoom.us

Zoom Rooms

  • It starts with a Free 30-Day Trial
  • Zoom Room Licenses cost $49 per month/room or $499 per year/room.
  • Zoom Room Enterprise costs $49 per month/room or $499 per year/room.

Optional Add-on Plans

The Conference Room Connector starts at $49 per month or $499.00 per year.

  • Connect your H.323/SIP systems with desktop, tablet, mobile devices, Zoom Rooms, and other H.323/SIP endpoints
  • Works with many legacy endpoints including Polycom, Cisco, Lifesize, and others
  • Cloud-based or on-premise (VM) room connector

Hardware as a Service starts as low as $25 per month/device.

  • Lease hardware monthly for low upfront costs and predictable budgets
  • Easy upgrades to ensure your hardware is current
  • Easily scale up (or down) your hardware as your organization grows
  • Add Managed Services to install and monitor your hardware

Zoom's revenue chart from statista.com

Source:statista.com

On October 14th, 2020, the company added another revenue stream to its arsenal with the launch of a beta version of the newest extension of its communications platform – OnZoom: a marketplace for immersive experiences. 

It includes commonly used payment modes like credit cards, and PayPal, along with a ‘donate’ option  (powered by Pledgeling) for fundraising purposes by nonprofit organizations.

Talking about the new platform’s objective in a blog post, Aleks Swerdlow, Product Manager at Zoom, explained that:

OnZoom is a comprehensive solution for paid Zoom users to create, host, and monetize events like fitness classes, concerts, stand-up or improv shows, and music lessons on the Zoom Meetings platform.

Screenshot of Zoom events

Source: onzoom.com

 

Zoom Contact Info

You may reach Zoom via the following social media pages:

 

Conclusion

This article is a quick introduction to how Zoom makes money and how it operates. For more information on Zoom, you can visit their website, or check out their blog to learn more about the platform’s latest features and third-party apps integrations.   

 

 

 

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