WordPress has taken up 69.5% of CMS market share and it is used to operate 27.6% of websites globally. However, you may have asked yourself, how does this giant company – WordPress – earn its money? As much as this website is popular for being a blogging platform, it has established itself as a successful business venture through different sources of revenue and ways of monetizing WordPress.
Introduction.
Since its introduction to the world of web content, WordPress has significantly changed the perception on website development. Due to this reason, it has become a platform that is free for everyone and it has accumulated a large following by millions of users from different parts of the globe. Thus, despite the lack of paid subscription and being open-source, WordPress has evolved various mechanisms of making money. To discuss in this article, we will take a look at the various factors that help WordPress generate the necessary revenues needed to support the needs of the company and further the growth of the platform.
The Open-Source Advantage.
Understanding Open Source.
WordPress is a content management system that is an open source in the case pertaining to the technical aspect of the realisation of the project – it means people can add as many modifications as they wish and distribute the whole material free of charge. But this model have provided a very huge number of download and developer making this application more developed always. However, one may possibly pose the following question: Due to which sources is WordPress, being an open-source, strengthening its balance?
The Role of Automattic.
It means WordPress is owned by Automattic, the blog publishing platform.Com stands for comercial and it is a form used by WordPress to generate a considerable amount of it’s revenuince.It was started and is still being led by Matt Mullenweg an American software programmer who co-founded WordPress Automattic provides products and services that help caters to its revenue needs.
WordPress. com Premium Plans.
Freemium Model.
WordPress. com is considered to operate on the freemium business model. However, free services available for use to create simple websites can be upgraded to the paid version, and among the features available in the advanced package include the ability to add custom domain, designing of the sites increase the amount of storage space you need and access to rare themes. Currently it offers four plans namely Personal Business & eCommerce to suit the individual’s or business’s requirements and financial capacity.
Revenue from Subscriptions.
Paid services, which come with the plans labeled ‘premium’, provide a good proportion of income to WordPress. This seems particularly so due to the simplicity and the additional features that are associated with these plans, thus explaining why they are popular among user who are individuals and companies.
Hosting Services.
Managed WordPress Hosting.
WordPress. com is the website that offers managed WordPress hosting through its subsidiary Automattic. com platform. A prime default which forms part of this service involves automatic update, security, and customer, support hence making the use of this product fluid. Some of them are considered to be premium services, which also help WordPress generate considerable revenue through its managed hosting plans.
Partnerships with Hosting Providers.
Apart from its hosting service, WordPress also works with various hosting companies like Bluehost SiteGround, and DreamHost. Such associations usually consist of different forms of outsourcing such as affiliate marketing, through which WordPress earns money for any customer who is referred to these hosting services.
Themes and Plugins Marketplaces.
Premium Themes.
While installation of free themes is available on WordPress, the other paid or better referred to as premium themes are sold through different markets. There is a store available on WordPress itself through which developers can sell their themes but another marketplace like ThemeForest can also be used where developers can sell their work and 70% of the income is given to WordPress.
Plugins for Enhanced Functionality.
Plugins are indeed very important as they help to enhance the operations of WordPress websites. Like the themes, there are both the free and paid plugins where the free plugins are normally limited in their functionality while the paid have more features. Some of the plugins that are built with superior features and support costs more, and this is where most of the sales revenues originate from. WordPress also gets paid through listing these plugins as part of their official plugins repository.
WordPress VIP.
Enterprise Solutions.
WordPress VIP is essentially an enterprise-level service that provides solutions catering to business pages, and highly frequented websites. Some of the components of this service are as follows; Account management, Security measures, Performance boosting, and many others. WordPress VIP has clients that include the social networking giant, Facebook, salesforce, and the cable news channel CNN, making it a very profitable revenue stream.
Custom Development and Support.
Beyond hosting, WP VIP additionally proposes custom development services and first-rate support so that its enterprise users profit the most. These contracts further up the revenue of WordPress remarkably because most of them are high-value contracts.
Advertising and Sponsorships.
Jetpack and WooCommerce.
It is also noteworthy that Automattic owns both Jetpack and WooCommerce – significant WordPress plugins coming with broad usage. Jetpack provides security, performance optimization, marketing features and more and it’s free for some service plans. WooCommerce is an effective plugin for setting up an eCommerce store, and the platform’s revenue comes from paid extensions and themes.
Advertising on WordPress. com
WordPress. com earns revenues through the selling of advertisement spaces for the operation of free websites. These ads can be disabled and only become active in a free version with promotional offers or a paid version available to users. Moreover, WordPress has WordAds as an ads platform for site owners to earn from traffic and actually Automattic gets to share the earnings with the site owners.
Educational and Training Programs.
WordPress Courses.
WordPress also has educational products and services that it offers for sale so that it generates the much needed revenues. It provides online courses and training sessions, including lessons and seminars in the basic and intermediate levels. These education resources are usually paid, thus generating another source of income for the company.
Certifications and Workshops.
The training sessions offered by Automattic include workshops and certification courses to apply for those interested in developing and designing career with WordPress. These paid programs are not just income spins but also contribute in creation of skilled WordPress fraternity.
Support Services.
Paid Support Plans.
If a user needs more assistance, then they can sign up for Word Press paid support plans. These plans offer help for issues such as troubleshooting or optimization for the site for a set period of time with an expert. Further, paid support guarantees that users get the assistance they need in a timely manner and from a highly skilled professional; this, in turn, makes the experience far superior to alternatives.
Consultation Services.
Beside of support plans, WordPress offers consulting to companies that need help in establishing or improving online presence through their websites. These are specific services that are sold based on customer requirements, and thus they are expensive solutions that help WordPress generate its revenues.
Affiliate Marketing.
Partner Programs.
From this technique, it can be seen that WordPress participates in affiliate marketing by partnering with a host of service providers.This is because WordPress in its promotional of hosting services, themes, plugins, and other tools get commissions for each sale made or for every referral they make. Such affiliate marketing programs are and constitute an additional stream of passive income.
Influence and Reach.
Due to the massive traffic and popularity, WordPress can easily post information about partner products and services and NEVER run a risk of having no affiliate sale at all. This strategy includes use of the widespread popularity of WordPress and its effects to increase the profits of the business.
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Conclusion.
The following presentation demonstrates how WordPress came up with a unique idea and diversified income streams to make a lot of money. The plans such as premium plans and managed hosting, themes and plugins, and the enterprise solutions have closely surrounded WordPress to foster for its growth and support. In the further development of the platform, one can expect additional revenue generation methods, and thus, it will maintain its market share in the content management system market.
FAQs.
- Regarding the hosting services, how does WordPress, being the creator of WP, generate its income?
- WordPress generates its income from paid services by hosting their own platform on WordPress. com. companies and hosting providers as the commission for providing customers, and that they are engaged in the sale of domains.
- From the information provided in the article, what is understood about premium themes and how they contribute to WordPress’s business model?
- Premium themes are the more sophisticated templates, which are developed and distributed by third-party authors and resources, and WordPress receives a cut of the profits from sales.
- How can WordPress VIP sustain its platform?
- The WooCommerce powered WordPress. com VIP has a hosting, development, and high-end support plan specifically for large businesses, and thus has significant revenue streams from large value contracts.
- It is interesting to know in the context of WordPress revenue model in which it is a free platform, what part does advertising play?
- WordPress receives advertisement revenue through running advertisements on free website spaces and providing a paid WordAds service that allows website owners to monetize their traffic and partnership with WordPress.
- The connection between income and educational programs in context of the WordPress company?
- They also present users with paid courses and webinars, certification, which is a provision of service since it generates income from paid tutoring.
- That brings it to the question of its importance specifically for WordPress?
- Affiliate marketing is the second-largest income-generating method for WordPress: earnings come from hosting services, themes, plugins, and other tools partnerships.
