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Business Operations Business Models

How Does 1Password Make Money (Business and Revenue Model)

The 1Password business model

1Password logo
Here’s what you should know:
  • What is 1Password, and how does 1Password work?
  • How does 1Password make money?
  • Subscription Revenue
  • 1Password funding, net worth, and valuation
  • 1Password profit and revenue
  • What is the 1Password business and revenue model?
  • 1Password subsidiaries, acquisitions, and exits

How does 1Password make money? Well, here is a complete, in depth, breakdown of their main revenue stream and services they offer, as well as the 1Password business and revenue model, how much 1Password makes per year, and how 1Password works.

What is 1Password, and how does 1Password work?

1Password is a password manager that allows its users to store passwords and other sensitive information in a virtual vault that is locked with a PBKDF2-guarded master password.

Founded in 2005 by Dave Teare, Natalia Karimov, Roustem Karimov, and Sara Teare, 1Password now has millions of customers and more than 100,000+ businesses using its password service.

So, how does 1Password work? To use 1Password, you can start by first either downloading their mobile app on Apple Store or Google Play store; or visiting their website.

Once downloaded, sign up for an account and choose a plan. You can then begin using 1Password in your browser to automatically save, fill, and change passwords on all the sites you visit and make them stronger.

Some of 1Password’s competitors include LastPass, Bitwarden, Dashlane, and other password managers.

1Password App in Apple App Store | 1Password Business Model | How Does 1Password Make Money | How Does 1Password Work
Source: Apple App Store | 1Password

How does 1Password make money?

According to 1Password, 1Password has millions of customers and more than 100,000+ businesses using its password service. So how does 1Password make money off of all these customers?

Below is a breakdown of how much money 1Password makes and its revenue model. Including their main revenue stream and how much they charge for their services.

Here is how 1Password makes money in 2022

1Password has a revenue model that makes money in just one (1) way; through subscription revenue.

#1. Subscription Revenue

1Password makes all of its money from its subscription revenue.

There is no free version of 1Password. So after a 14-day free trial, all users on the platform are billed monthly or yearly if they want continued access to securing their passwords.

1Password offers four (4) subscription plans to choose from – they are; Individual, Family, Business, and Teams. All of which allow users to create, autosave, and autofill unlimited passwords, two-factor authentication, 24/7 email support, and more – depending on the pricing plan. Which you can see below.

How much does a 1Password subscription cost? (1Password pricing plans)

  • Individual: $2.99 per month
  • Family: $4.99 per month for up to 5 family members
  • Business: $7.99 per month, per user
  • Teams: $19.95 per month for up to 10 team members
1Password for Mac | 1Password Business Model | How Does 1Password Make Money | How Does 1Password Work
Source: 1Password

Note: There is no free version of 1Password. So all of their millions of users are paying at least $2.99 per month.

1Password funding, net worth, and valuation

According to 1Password’s Crunchbase profile, 1Password has raised $920.1 billion over 3 rounds and has a valuation of $6.8 billion as of January 2022.

1Password profit and revenue

In 2021, 1Password had a reported $150+ million USD in revenue.

Note: Because 1Password is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.

What is the 1Password business and revenue model?

1Password makes money through a few revenue models that they combine within their company, they are:

  • Subscription business model
  • Business to business (B2B) business model
  • B2B2C (partnerships) business model
  • Mergers and acquisitions (M&A) business model

1Password subsidiaries, acquisitions, and exits

To date, 1Password has made a total of 1 acquisition.