Zoom Business Model - How Zoom Makes Money

Zoom Business Model - How Zoom Makes Money


The COVID-19 makes us leave in lockdown and also makes us to work from home. In this case, the app named ZOOM helps us a lot.

While there is no doubt that the use of almost all types of apps has increased in these divisive days, the ones that stand out the most are Apps Chat Chat. By turning social distance into long-term entertainment - these apps make a lot of money every day. The incredible growth of apps like Zoom is proof.

Zoom is a cloud-based conference tool that allows users to interact virtually with audio, video, and chat. The advantage of a competitive company focuses on easy products and high-quality audio/video output.

The Zoom Business Model is developed to charge businesses to repeat fees for a variety of products offered by the company. Also, Zoom makes money by advertising hardware products.


What is ZOOM? 


Zoom is a cloud-based video communication app that lets you set up video and audio conferences, webinars, live chats, screen sharing, and other interactive skills. You do not need an account to attend the Zoom meeting, and the platform is compatible with Mac, Windows, Linux, iOS, and Android, which means almost anyone can access it.

The SAAS platform allows users to interact with potential partners and other video users, helping them maintain their workflow even if they are physically unavailable.

Users can hold individual meetings or hold video conferences with up to 500 participants. Screensharing allows meeting participants to better communicate within the meetings and disseminate information.

Global acceptance of Zoom is powered by its two main products: Zoom Meetings and Chat as also Zoom Rooms and Workspaces.


Zoom user statistics and market share-


According to SensorTower, Zoom was the highest downloaded app on all the platform.

zoom business model

Source: SensorTower

According to statists, Zoom was the most downloaded app in one week of March. 

how zoom makes money

Source: Statista


How does ZOOM works?



  • According to Crunchbase, Zoom has raised $ 146 million in six startup funding. Investors include the likes of Horizons Ventures, Emergence Capital, Sequoia Capital, and many more.
  • Zoom has raised another $ 356.8 million in its IPO, announced in April 2019. The company first appeared on the Nasdaq market under the ZM tick. Many of Zoom's colleagues who came out in the open in 2019 did just that while still losing money. Meanwhile, Zoom has already made a profit and earned $ 7.58 million in total salary for the 2018 financial year.
  • Users can use Zoom Video Conferencing Solution on many platforms such as iOS, Android, Mac, PC, and Linux.
  • App communication can be done through chat, video, audio, or a combination of all the software value propositions. It's a one-stop-shop for all types of collaborative needs as it allows for all forms of communication - be it chatting, video conferencing, group meetings or simply hitting.
  • Zoom works on the freemium model. It offers 4 different membership programs, one of which is a free program. The free solution program is all that the average user needs as it allows you to have video conferences for up to 40 minutes and have up to 100 members.
  • However, that doesn't mean you can't say Zoom is a free app. You must pay a fee to use its special features, for example, - the ability to add 100+ members, increase meeting hours, and integrate with other services.
  • As mentioned above, Zoom offers four price plans to allow its users to enjoy these special features and they are called Zoom Pro, Zoom Business, Zoom Enterprise, and Zoom Rooms. You can find details about pricing here.
  • What are the Key features of Zoom? It includess individual meetings, group video conferences, and screen sharing where users can meet individually or in large groups and share their screen to see what others are doing. Its international acceptance but is promoted by its two brands namely Zoom Meeting and Chats.
  • Users can go to Zoom meetings using an Internet browser, or mobile and desktop applications. Chat comes as an extension to its Collaborative product where users can connect by a chat with each other, share texts, or form groups.
  • Zoom Room and Zoom Workspaces are also its products but paid for allowing organizations to use devices such as a tablet, computer, microphone, camera, etc. to organize visual meetings. These solutions are designed especially for large businesses that need to work and collaborate in all the various offices.
  • In addition to the four products mentioned above, the company has other products such as Zoom Phone, Zoom Video Webinars, and the App Marketplace where its users can install and use third-party applications such as HubSpot, Trello, and Slack to improve performance.
  • All in all, it is not bad to say that its freemium business model has helped to increase its acquisition rate and its timely renewal to make it better for the industry and better suited to the needs of the current era.
  • Now that we know all about it - How close it works, what its features are, and the Zoom business model - it’s time to see how the app makes money to continue its operations and the methods it uses to stay profitable while serving its users the best way.


How zoom make money-


There are some ways and tactics zoom uses to generate revenue. We will discuss them in this post.

zoom making money


Subscription Model:  


Zoom earns most of its revenue from offering subscription plans with varying features. As of writing, Zoom offers 4 different subscription plans for its users –


  1. Basic
  2. Pro
  3. Business
  4. Enterprise


What are the ZOOM planes and pricing?


zoom plans and pricing

From: Zoom


Zoom Basic:


The Basic plan is free to use and it allows its users to host up to 100 participants in a single meeting (video conference), unlimited 1 to 1 meeting, online support, and additional features on video calls, web, and group collaborations. The only limitation is that the duration of group video call is limited to 40 mins. Another group calls with the same participants can be made only after a cooldown period of 10 minutes. Zoom’s Basic plan is more suited to personal use-cases.


Zoom Pro:


The Pro plan is currently priced at $14 per month and carries over all the features provided by the Basic plan along with added benefits such as – group video call duration increased to 24 hours rather than 40 minutes, the ability to add more than 100 participants for a set fee, integration with Skype for Business and much more.


Zoom pro plan:


The Pro plan is more suited towards professionals and small teams aiming to collaborate from their desired locations.


Zoom Business:


The Business plan is currently priced at $19.99 per month and requires at least 10 members to be present in your team. As the name suggests, this plan is more suited for small to medium businesses. The Business plan carries over the features offered by the Pro plan along with lots of added benefits. The Business plan provides the ability to host video meetings with up to 300 participants by default (with the ability to add more by paying for it), dedicated phone support, custom emails, logins, URLs, domains and admin console.


Zoom Enterprise:


The Enterprise plan starts $19.99 per month and requires there to be at least 50 members present in your team. As the name suggests, the Enterprise plan is most suited towards large businesses and enterprises. The Enterprise plan carries over all the features provided by the Business plan while offering newer ones better suited for large teams, businesses, and corporations such as – the ability to have up to 500 participants by default, unlimited cloud storage, discounts, and bonuses on other Zoom offerings, analytics, tracking tools, and dedicated support staff.


Zoom Phone-


Zoom Phone is a cloud-calling solution designed for users who want to have quick calls without video. Users can launch a VoIP call instead while using the same Zoom tools available in its Meetings product.

Other features include:

  • AI-assisted call management and routing
  • Call recording and voicemail
  • Secure HD audio for clear conversations
  • Auto-attendant and IVR tools to redirect calls to the most qualified agent

and many others. Similar to its other products, Zoom charges a monthly subscription fee of $14.99 for every host (or $12.49 per month when billed annually).


Also Check: Instagram Business Model-How Instagram Makes money


Zoom Video Webinars-


Zoom Video Webinars is a web conferencing service that allows users to broadcast a Zoom meeting to up to 10,000 view-only attendees. Webinars start at a capacity of 100 participants and scale up to 10,000 participants, depending on the license bought.

As the organizer of the webinar, one can share your screen, video, and audio. Furthermore, attendees can use the chat or question and answer options to interact with the webinar host.

Registration for webinars may either be optional or mandatory, depending on the privacy settings chosen. Webinars can either be held once, reoccur successively, or the same session can be held various times.

Webinar pricing starts at $14.99 per month and user (when billed monthly). On top of that, a webinar license must be purchased. The price depends on the number of attendees hosted.

Lastly, Zoom offers special packages to organizations in the Education, Finance, Healthcare, and Government industries.

For instance, schools will have to pay 1,800$ annually to unlock 20 hosts and access the company’s premium features.  


Zoom Rooms & Workspaces-


Zoom Rooms are conference room systems that allow organizations to conduct video conferences. Customers can use their existing hardware providers such as Polycom and Cisco or purchase from Zoom-certified hardware providers.

The company's Professional Services unit ensures that the installation of conference rooms continues as smoothly as possible.

Customers are charged a monthly subscription fee, which comes in at $ 49 per month per conference room installed (or $ 41.58 per month when charged annually).

Besides, Zoom collaborates with manufacturers such as DTEN or Aver to provide their customers with the necessary hardware tools.

In all similarities, these providers pay a percentage of all hardware sales on Zoom. In return, Zoom will ensure that it promotes its products to corporate customers.

In the first quarter of 2020, Zoom reported revenue of $ 328.2 million, an increase of 169% from the same period last year. The number of customers with more than 10 employees has also grown to about 265,400, an increase of 354% from the same period last year.

Eric S. Yuan, Founder and CEO of Zoom said the rapid growth of Zoom is a problem for COVID-19 and it is. However, Zoom was growing steadily even before that.

Here is the revenue growth of ZOOM and it shows a high jump from FY 18 to FY 19.


As of Jan 2020, Zoom has received $ 622 million, total revenue of $ 500 million, and revenue of $ 12 million.



This is how the zoom app works and how zoom app generates revenue. You can also build your app like zoom. You just need to find the best app development company, and you can build your app.

At SchultzCode Technologies, we have experienced developers. They have complete knowledge of using the latest marketing trends and have a solution to your problems. You can contact us to understand and develop an app like zoom for you.

By Jitendra Galani

10 Jan 2021

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