Today websites have become an integral part of any business as they give you opportunities to expand your business; Websites help organizations create an online presence, which eventually leads to better marketing of your company.
Also, they give your business credibility and provide directions to your shop/ establishment to your clients. They also host a bunch of testimonials, which helps generate trust and reliability among potential customers.
Your website should be well designed, informative, and up-to-date to create credibility and strengthen your company; however, the question remains How to create a website as not everyone is tech-savvy or a computer science engineer who can develop websites. For such people, Wix is their go-to tool. Wix lets you build websites without demanding specialist skills; you do not even need to hire web developers.
In this blog, we will tell you about the Wix Business Model. So stick around if you are interested in using Wix or developing a similar tool to Wix.
What is Wix?
Wix or Wix.com, an Israel-based company, provides cloud-based web development services to people who lack the skills to build a website. Wix allows users to create HTML5 websites and mobile sites using online drag and drop tools. Wix offers the following options:
- Wix Editor
- Wix ADI (Artificial Design Intelligence)
- Corvid by Wix
Avishai Abrahami, Nadav Abrahami, and Giora Kaplan established Wix in 2006.
Before we read about the Wix Business Model, let us have its overview.
Overview of Wix
- Type: Public company
- Traded as: Nasdaq: WIX
- Industry: Internet
- Founded: 2006; 16 years ago
- Founders: Avishai Abrahami, Nadav Abrahami, and Giora Kaplan
- Headquarters: Tel Aviv, Israel
- Number of locations: 19 (2021)
- Area served: Worldwide
- Key people: Mark Tluszcz (Chairman)
- Avishai Abrahami (CEO)
- Products: Online services for stores, bookings, hotel, restaurants, video, music, shoutout, answers, logo maker
- Services: website builder, Business Management, Web hosting service
- Revenue: US$1.3 billion(2021)
- Operating income: US$47.24 million (2018)
- Total assets: US$1.1 billion (2016)
- Total equity: US$20.00 billion (2020)
- Owners: T. Rowe Price (14.1%), Mangrove Capital Partners (9.7%),
- Steadfast (8.5%), and Fidelity Investments (5.5%)
- Number of employees: 5,000 (2021)
Let us now see the products of Wix before reading the Wix Business Model.
Products of Wix
It includes the following things:
- Website designs
- 800+ designer-made website templates
- Advanced web development with WIX Editor X
- Logo maker
- Blog website
Website Essential offers the following things to users:
- Domain name
- Free web hosting
- Website security
- Analytics, Roles & Permissions
- Mobile app and multilingual website
Wix for Enterprise
Wix for Enterprise helps create, collaborate, launch and manage your projects at scale with the latest technology and tools suitable for your business needs.
It lets users build an online store, manage orders and fulfillments, dropshipping, services and memberships, etc.
Business Tools consist of online scheduling, business email, phone number, ascend business solution, analytics & reports, and app integration.
Boost Website Traffic
Wix also provides tools for SEO, email marketing, social posts, video maker, and Facebook Ads(using Wix’s AI optimization) to its users.
Engage your Clients
Wix offers lead capture tools, financial tools, CRM by Ascend, mobile app, and community management to users to engage their clients.
Hire a Partner
Wix even finds the right business partners for entrepreneurs. For this, you need to choose either a freelancer or an agency that perfectly fits your website needs. WIX allows you to connect with Coders and developers who specialize in developing sites on WIX. All the Wix tools and products suit the goals of any modern business.
WIX Mobile App
The Wix mobile app allows users to convert each site developed using WIX into mobile apps.
To fully understand the Wix Business Model, we first need to understand what a business model is.
What is its business model?
A business model acts like a plan that your company uses for making money that explains how you deliver value to your customers at a reasonable cost; it consists of your product descriptions, services, target audience, and the needed expenses. It gives entrepreneurs the freedom to experiment, test, and model different ways to structure costs and revenue streams.
Now it is time to go through the Wix Business Model.
Wix business model
The Wix business model revolves around the freemium model, and Wix offers a dedicated CRM for business customers to manage their customer data and operations.
Besides it, Wix also offers more than one thousand innovative features and has over 180 million customers in about 190 countries globally. The Wix platform is a cloud-based web development enabling users to create, manage and grow their business using its tools.
Website development would not be an easy task had it not been for Wix. Today anyone can build a website, thanks to Wix. Wix provides people with drag and drop tools, editing tools, and numerous designer-made templates for website creation; it reduces coding with these tools.
To beat its rivals, Wix also offers the following things:
- Domain registration
- Logo creation services
- Web hosting
- Marketing services
- Mobile app version of each site
The Wix business model offers both free and paid versions. The free version has limited features, whereas the paid version offers several features and premium assistance.
The Wix business model earns its profit by charging its customers for its products and services( a lump sum or subscription) dependent on the selected products and services.
That is all about the Wix business model; let us see how Wix generates its income below.
Revenue Sources for Wix
Paid users are the source of Wix income. Let us now see how this happens. The free version of Wix acts as bait to make customers use the paid version, and the following are the way Wix earn
The premium version offers creating a website, connecting it to a domain, domain registration, storage, and bandwidth to priority customer support.
The categories of the Wix tool are Connect Domain plans, Combo Unlimited, and VIP. Based on your chosen version, you get to pay for using Wix. The fee generally ranges from $4.40/month to $12.25/month for premium plans. In addition to it, the type of website you want it for also dictates the fee you pay; different prices for business and eCommerce.
Wix lets third parties build and publish different applications, which further extends the features of Wix on its app market. The applications can be customized pop-ups, statistics, live chat, maps for enhancing user experience.
Both free and paid versions of Wix enjoy the third-party apps; it shares the revenue generated by such premium apps from third parties.
Users are free to buy and register a domain on Wix at a specific value based on the domain extension, the number of years, privacy protection, and tax. Although it offers premium members free domain and registration for one year, it charges for other features. The other features include privacy protection, taxes, etc. Also, it garners money from premium members after the offer expires.
Wix allows its customers to create their own logos for their websites. Besides it, Wix allows its users to blog easily using its Logo Maker. But there is a catch, Wix charges a one-time fee to download the image and get usage rights. The prices depend on the resolution and add-ons and range from $12.99 to $49.99.
Customers and their employees get dedicated email addresses through Mailbox by Wix linked to either Microsoft or Google applications. The Wix Mailbox offers numerous benefits and comes at a monthly subscription fee.
Wix shares this revenue with Google and Microsoft because it partners with them to offer these email services.
Ascend by Wix
Ascend by Wix, a CRM tool, helps businesses engage with their customers and build strong customer relationships to promote their businesses. The tool helps manage tracking leads, managing customer interactions, automating email responses, enabling chat features, etc.
Wix offers Ascend users three types of plans and charges every month.
SEO & Marketing Tools
Wix helps businesses rank higher on search engines and reach wider audiences with its SEO and marketing services. The services comprise SEO tools, email marketing, Facebook Ads, etc.
It does not require any extra plugins.
These are the sources of Wix revenue.
Tools like Wix help people who want to create their websites for their business but do not have the skills and resources. Squarespace, Wix, Tilda, and Weebly are a few such tools. If you want to launch a tool like Wix, you need to know about the Wix business model.
Tools like Wix have a great demand in the market (Wix enjoys 196.7 million subscribers as of 2021), and this field has good scope.
If you want to create your own Wix, feel free to contact AppsRhino.
AppsRhino is a mobile app development company powering on-demand mobile apps and business apps for entrepreneurs and enterprises.