How Does Zoom Make Money

How Does Zoom Make Money

Taking the market by flood against viral video calling apps like Google, Skype and WebEx isn’t an easy conquest for the Zoom app. Having launched in 2013, the app became the most popular video calling app in less than a decade. The credit to this goes to the fantastic audio and video qualities and the great functionalities that offer smooth operations. And the pandemic, while the world was suffering the Covid-19 pandemic, the app took its turn to become famous worldwide and make some money.

Introduction About Zoom App

An employee from any corner of the globe can connect with organizations and work there remotely using the Zoom app. But, they should have a reliable internet connection. Zoom is a highly reliable tool for conducting meetings, lectures, informative sessions online. As long as all the attendees have a zoom app, there’s nothing to worry about, and one can effortlessly deliver the speech and make meaningful communications.

The use of the zoom app skyrocketed as the Covid-19 pandemic stroke the world. Various nations worldwide began imposing strict lockdowns. Education and employment became entirely online. So, everyone relied on zoom for conducting classes, offices, meetings, seminars, and everything. With this, the app becomes more popular as a reliable app to everybody.

How Does Zoom Make Money?

One might think zoom is a free video-conferencing tool. But how does zoom make money? Does it even make money? Yes, it does, and here is how. 

  • Via Zoom Meetings. Zoom meetings are free, but there is a time restriction: 40-minute and no of participants allowed: 100 participants. For more time and more participants, one has to pay as per their criteria.
  • Via Zoom Room. Zoom rooms are for big companies where meetings need to be smooth. One has to subscribe and pay at least $49 per month per room. 
  • Via Zoom Phone. Zoom phone is a cloud base calling. For an individual user, the cost of a zoom phone starts from $10 per month.
  • Via Zoom Video Webinars. A host can invite 10,000 people for online video conferences via Zoom video webinars. The cost, however, varies based on the number of hosts and participants. For a single host and 100 participants, the price is $40 per month. This cost can go high up to $6494 per month if a single host invites 10,000 participants.

Zoom app downloads

When Zoom was founded in 2011, video conferencing apps like Microsoft’s Skype, Google Hangouts, and Webex were ruling the market. The app was struggling to take the market until the Covid-19 pandemic occurred in late 2019. Especially in April April 2020, there is a record of almost up to 3.5 million downloads within a day.  

Compared to the number of downloads that occurred in 2019, the number increased by 30 times in 2020. There were around 16 million downloads across android, app store, and play store in 2019. In 2020, the number became almost 485 million. The Zoom app, in January 2021, was downloaded 344.4 million times alone.  

Is Zoom Safe to Use?

Zoom is popular worldwide. The developers have been working on the privacy issues. However, various privacy issues and security frauds have been claimed by the users. 

Users sign in using their Facebook accounts and google accounts. When you give your information on Facebook, it could make it easier for hackers to access the user’s data and information. Also, as soon as you sign in, the app sends your data to LinkedIn and Facebook without your permission. 

Due to some privacy concerns, Zoom was banned for official business in nations like Canada and Taiwan. In Taiwan, it was blocked by the school boards as well. In addition to this, some notable organizations, including SpaceX and Nasa, also stopped using Zoom. 

Do you know this term called Zoombooming? Zoombooming happens when your user account for the zoom app gets hacked. After hacking your account, they join your meetings and audio calls and take information from them. 

How Much Money Does Zoom Make?

Now we know that zoom makes money. But, how much? Has the application been making more money after the COVID-2019 pandemic situation? Here we compare how making money for the zoom app has been affected by the pandemic. 

Let’s start by comparing the number of Zoom’s business partners in 2019, before the pandemic, and in 2020. The number was 82,400 in 2019, which rose drastically by more than a multiple of five in a single year. As of December 2020, the number excited to 470,000. Since the Covid-19 pandemic infecting people from around the world, everything became digital. No one could go out. Thus, they trusted Zoom to connect and cope with the real-time scenario. The increased use is why the number of users flooded within the span of a year.     

As Zoom was becoming one of the fastest-growing apps in the pandemic, the count of daily meeting participants in zoom also accelerated. In 2019, the number was 10 million, which accelerated to 200 million in March itself, as the lockdown began. Later on, this number increased by a hundred million in April, and in December 2020, Zoom had 350 million daily meeting participants.

Zoom earns money via Zoom meetings, Zoom rooms and workspaces, Zoom phone, and Zoom video webinars. How? Let’s have a look. 

Zoom Meetings

Zoom meetings are the most popular way to connect with people via audio and video these days. The users can chat, share images, audio, and videos. Zoom meetings are free unless the meeting time exceeds 40 minutes and the number of participants is 100. Zoom app offers zoom meeting features to big and small enterprises and offers various plans on a paid basis. 

Zoom Basic

  • Best for a personal meeting
  • Free for 40 minutes and 100 participants

Zoom Pro

  • For up to 100 participants
  • Unlimited meeting time
  • Cost $14.99 per month

Zoom Business

  • For up to 300 participants
  • Unlimited meeting time
  • Cost $19.99 per month
  • Allows cloud recording 
  • Sending invites is easy due to email templates

Zoom United Business

  • Provides unlimited calling within the USA and Canada.
  • For up to 300 participants

Zoom Rooms & Workspaces

Zoom rooms offer video conferencing. Large organizations are benefited from Zoom rooms to conduct Zoom meetings. If you are willing to get a zoom room, you should subscribe and start by paying $49 per month.

If a user wants many conference rooms, they have to pay more. For example, buying 20 rooms costs $980 per month. 

Zoom Phone

Zoom phone is a cloud-based calling. Zoom phone provides voice service, messaging, video services, and conferencing altogether. It has some amazing features like call routing, auto-attendant, and you can also record all your calls. Using a zoom phone costs $10 per month for a user. 

Zoom Video Webinars

Zoom Video webinar is an amazing service to those who want to host big seminars, including many people. Hosts can do online conferencing with 10,000(max) at a time. Zoom webinars are fun: you can chat, create polls, and virtual raise your hand to the attendees. One can organize parent-teacher sessions, marketing promotions, meetings, and other online gatherings. 

The cost varies based on different criteria. If a single host hosts a conference including up to 100 attendees, the cost is $40 per month. A host can have up to 10,000 attendees. Say you are the host, and if you are hosting this sort of webinar, the cost can be as much as $6490 per month.

Zoom annual revenue and profit

Comparing the past three year’s data of Zooms revenue and profit, the year 2020 is leading the other two years, 2018 and 2019. 

In 2018, Zoom made a total income of $331 million. Zoom made an annual profit of $7 million in that year.

In 2019, the total revenue almost doubled, resulting in 623 million dollars in income. The annual profit in 2019 became three times multiple than in 2018. Zoom app made a $21 million profit in 2019. 

In 2020, with the increase in popularity of the app, Zoom earned a total income worth 2.6 billion dollars. This revenue is a 317% increase as compared to the previous year’s. The profit made in 2020 is amazing. From $21 million in 2019, the number sky accelerated to $671 million. 

FAQ’s On Zoom App

  1. Does zoom make a profit?

Yes, Zoom makes a profit. The app made a net profit worth $671 million in the past year. With its increasing popularity in 2021, the app might make even more profit this year if it continues to remain the best. 

  1. Is Zoom free?

Zoom meetings are free until the meeting exceeds a limit of 40 minutes time limit and 100 attendees. If the criteria exceed, you have to pay. 

  1. What happens if you go over 40 minutes on Zoom?

If your meeting extends until 40 minutes, you will see a countdown clock appearing on the screen. If you are using the app for free, you can ask all the participants to leave the meeting. But later on, if everyone joins the original link and the ID, you can have 40 minutes long free zoom meeting again. 

Up to You

Zoom, after the pandemic, is the most popular tool used to work remotely. The user gets to connect with people and groups with high-quality audio and video. With an average of 300 million daily participants and 148.8 million users, zoom is becoming a viral app. It has been earning and making massive profits since April 2020.

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