- What is Wix, and how does Wix work?
- How does Wix make money?
- Premium Subscriptions
- Selling Domain Name Registrations
- Wix App Market
- Ascend by Wix
- Other Business Solution Revenues
- Wix’s Subsidiaries, Acquisitions, and Exits
- Wix’s profit and revenue
- What is the Wix business and revenue model?
- Wix’s funding and market cap
How does Wix make money? Here is a full, in-depth, breakdown of their five (5) revenue streams and the different products and services they offer, as well as the Wix business model, their year-over-year revenue, and how Wix works.
What is Wix, and how does Wix work?
Wix is a software company that provides web development services to build, customize, and deploy websites live in the cloud.
Founded in 2006 by Avishai Abrahami, Nadav Abrahami, and Giora Kaplan, Wix now has over 197 million users across 190 countries and currently, there are more than 4.5 million live websites on the internet built using Wix according to BuiltWith.
How Wix works is: Users can start building a website on Wix for free by signing up for a Wix account. If a user decides to take that website live, they can then choose from one of Wix’s premium subscription plans. On top of that, Wix offers a number of other services that can be purchased separately.
Some of Wix’s competitors include Shopify, Squarespace, BigCommerce, Weebly, and other website-building service companies.
How does Wix make money?
According to Wix’s about page, they have over 197 million users across 190 countries. So how does Wix make money off of all these users?
Below is a breakdown of how much money Wix makes and its revenue model. Including all revenue streams and how much they charge for their services.
Here are the 5 ways of how Wix makes money (in 2021):
Wix has a revenue model that makes money in five (5) ways – premium subscriptions, selling domain name registrations, Wix App Market, Ascend by Wix, and other business solution revenues.
#1. Premium Subscriptions
Wix makes the majority of its money through its premium subscription service. In fact, $714.3 million or 72.2% of Wix’s total revenue came from its premium subscription revenue in 2020.
Wix offers three (3) tiers for their premium subscription service: Website, Business & eCommerce, and Enterprise.
According to section 57 of Wix’s 2020 Form 20-F, Wix says to have over 197 million users with more than 5.5 million being premium subscribers.
- Website Plans: $14 to $39 per month
- Business & eCommerce Plans: $23 to $49 per month
- Enterprise Plans: starting at $500 per month
Note: 72.2% of Wix’s total revenue came from its premium subscription revenue in 2020.
#2. Selling Domain Name Registrations
In addition to premium subscription revenue, Wix also makes money by selling domain name registrations to its users.
The way it works is: When a subscriber signs up for a premium subscription, Wix will ask if they need to purchase a domain or if they already own one. If they do not, Wix offers a service to purchase and register the domain through them. The first year is free with a premium subscription, after that the domain owner will be charged yearly.
According to section 84 of Wix’s 2020 Form 20-F, revenues from domain name registrations accounted for approximately 7% of total revenues which adds up to roughly $69.2 million in revenue from selling domain name registrations in 2020.
Note: Roughly 7% of Wix’s total revenue came from selling domain name registrations in 2020.
#3. Wix App Market
Aside from the two (2) Wix products above that generate 79.2% of Wix’s total revenue. Wix also makes money through other added services. The first being the Wix App Market.
The way Wix makes money from this is the app developers and Wix agree to a 70%/30% revenue share of each app sale made on the App Market.
- 30% of Net App Revenues
#4. Ascend by Wix
Another added service that’s a part of Wix’s “Business Solutions” is Ascend by Wix.
Ascend by Wix is a service that offers marketing and customer management. Offered through three (3) different Ascend plans: Ascend Basic, Ascend Professional, and Ascend Unlimited. All of which vary in price between $10 to $49 per month.
Ascend by Wix Pricing:
- Basic: $10 per month
- Professional: $24 per month
- Unlimited: $49 per month
#5. Other Business Solution Revenues
Along with the Wix App Market and Ascend by Wix, Wix also has a number of other services they offer that add to their total revenues. They group these products together on their financial reports as “Business Solutions.”
According to section 84 of Wix’s 2020 Form 20-F, those “Business Solution” services are the Wix App Market, Ascend by Wix, Payments by Wix, Wix Answers, Wix Logo Maker, Paid Ad campaigns, Shipping labels, and DeviantArt.
Note: “Business Solution” services made up a combined 20.8% of Wix’s total revenue in 2020.
Wix’s Subsidiaries, Acquisitions, and Exits
To date, Wix.com Ltd. has made a total of 10 acquisitions, 4 investments, and 1 lead investment.
Wix’s profit and revenue
In 2020, Wix reported $988.8 million in revenue.
Note: Because Wix.com Ltd. is a publicly traded company, under the Securities Exchange Act of 1934, they must file continuous financial filings with the U.S. Securities and Exchange Commission (SEC). You can find all of Wix’s publicly released financial reports, including annual reports, through Wix’s investor section on their website.
What is the Wix business and revenue model?
Wix makes money through a few revenue models that they combine within their company, they are:
- Subscription based business model
- Revenue sharing business model
- Freemium (upselling) business model
- B2B2C (partnerships) business model
- Mergers & acquisitions (M&A) business model
Wix’s funding and market cap
According to Wix’s Crunchbase profile, Wix has raised $58.5 million over 4 rounds and has a market cap of $11.4 billion as of August 2021.