How does Zoom makes money?


In this post, we are going to be looking at how zoom makes money. 

I believe we all know zoom video application but if you don’t, you don’t have to worry because I will give you an oversight of what it entails.

Whenever you think about video conferencing there is an app that comes to mind and this is Skype.

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Skype app has been the most dominant video conferencing app which coordinates official video calls and private video sessions for several years now but with the emergence of some new video conferencing applications, Skype might have faded.

An application that has more recognition especially during the lockdown. Which was as a result of the pandemic is the zoom app. it became very important because corporate organizations and companies want to conduct official meetings online with the help of a video application, even in the educational sector School want their students to learn online and zoom has also provided the platform.

Though at a particular point the zoom application was involved in a controversy it was raised against this questioning it ability to handle the user data privacy. There are many countries that are advocating towards the total takedown of the zoom application. However, I will not be focusing on the controversy behind the zoom app.

Obviously on this page because you want to know the business model that the zoom app is using to make money.

Brief description of zoom app

It is very important that you get to know about this application and its functions before finding out how it makes money from the users. Zoom video communications inc.which is mostly referred as Zoom is a media and communication company that has its headquarters in San Jose California.

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zoom provides online chat services and video telephones using a peer-to-peer software platform which is cloud-based. this application is used for telecommuting, teleconferencing, social relations, and distance education.

You can use zoom video software free during video conferences but with a maximum of 100 participants and it has time limit which is 40 minutes. If you’d like to increase the time limit or larger conferences then you have to upgrade to paid subscription if you cost you between $15 to $20 monthly and there are features that a very good for business conferences like zoom rooms and this option might cost you between $50 to $100 monthly.

About Zoom CEO

Eric Yuan who is the CEO of zoom technologies went into the market of videoconferencing in 2011 do at that time the market was already saturated with popular technology companies like Skype which is owned by Microsoft, Google Hangout then Webex which was owned by Cisco.

At a particular time, Eric became the France president of engineering at Webex before he dropped and created his own video service.

My question is why did you quit and already established a technology giant like Webex to create his own video application which is now a big phenomenon in the whole world?


It is very true that coronavirus which cost the lockdown had boosted the growth of zoom application in a shocking way that even the chief executive officer Eric was surprised even though it’s a known fact that zoom was already established as a successful product before the boost.

Even though zoom’s CEO – Eric Yuan is successful at the moment, it took his time to achieve it all. He was denied a visa into the United States several times it was at the night time that he got it due to misconception from immigration officers.

in 1997 he became a founding engineer in Webex company and he was in charge of real-time collaboration after Webex went public in 2000 it became popular. By 2007, Webex brought acquired by a popular tech giant Cisco for a whopping sum of 3.2 billion dollars. it was then that Eric became the vice president of engineering in the company.

he continued working with projects to be found out that most customers of the company we are not happy with the product because anytime they logged into a Webex conference it took a lot of time before the system can verify the product version before allowing them into the conference then the server couldn’t handle a massive number of people when they join the conference.

Webex also lacked several features such as Screen sharing and all that. Eric tried to convince his boss to upgrade the company products they didn’t agree so when he finally left the company in 2011 several people wanted to follow him. At that time robot engineers left with him to become workers in his new venture.

Here are ways zoom makes money

Subrah Iyer who was the former CEO of Webex believed in his dream and gave Eric a seed funding of $3million.

In 2013 Wednesday launched the first version it’s reached up to six million dollars.

By May 2013, zoom product has reached 1 million participants and connected over 400000 and over 3500 businesses.

Zoom uses the business model that is popularly called freemium which provides diseases with free services that are limited at some point but this hooks the uses and makes them become subscribers to the services.

1. Zoom meetings

this is the basic service that isn’t company offers which allows the users to connect using audio and video. There is also a zoom chat in this meeting which will allow the users to type and share images or text.

In this but there are different kinds of plans, the basic plan is free what is limited to 40 minutes with a maximum of 100 participants. There is a pro plan which costs $14.99, the business plan cost $19.99, and the Enterprise costs $19.99 monthly.

There are also some other features like zoom rooms, zoom video webinars, and zoom phones which costs up to $415.83 monthly and $4990.00 yearly.

Zoom finance

In the first quarter, this year had a revenue of $328.2 million in which major revenue grow up to 169% since the same period last year.

by the end of January 2013 zoom had made a revenue of $622 million, it has also made a gross profit which was about $500 million and gotten a net income of $12 million.


1 Comment
  1. The Blogger Scientist says

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