how does zoom make money: Zoom business model

how does zoom make money

Do you want to know how Zoom makes money? Zoom has emerged as a market leader in digital enterprise video networking, offering simple-to-use and highly reliable video and audio-video conferences solutions.

Key statistics 

  • Zoom’s revenue in 2019/20 was 2.6 billion dollars, a 317 per cent increase from the previous year.
  • Zoom was among the pandemic’s largest growing applications, with meeting attendees by 2900%.
  • As of Dec. 2020, it had 470,000 corporate clients.
  • Zoom’s stock surpassed $100 billion during the pandemic, representing a 383 per cent rise from its value in January 2020.

Let’s take a closer look at Zoom and how does it make money.

What is Zoom?

how zoom make money
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Zoom Video Networking, Inc. is a global communications solution that provides cloud-based visual / voice conferencing and chat facilities. Zoom’s goal is to make visual messaging as simple as possible. It is appropriate for small, medium, and large businesses, as well as for private use.

It started in 2011 as a venture-funded business and then became a publicly-traded company in 2019.

Zoom will most likely be remembered for its significant role in holding the planet linked through the 2020 crisis. When the COVID-19 pandemic struck, and many companies and classrooms closed, Zoom had become a mainstay for schooling and businesses to keep teachers, staff, and citizens everywhere united during a period of physical separation.

However, with an organization that just made its first overall revenue last year, the issue of how it makes money is worth exploring.

How Does Zoom works?

Zoom is a software-as-a-service (SaaS) technology for virtual interaction. It is available as a smartphone application and a desktop application for Windows and Mac Operating Systems.

Zoom makes it easy to host, join, or arrange one-on-one or community meetings. Furthermore, Zoom app allows you to share your screen and invite others to participate, record the meeting, start or stop any recording, enable off-mic, live chat, and modify your screen name. 

Noticeably, Zoom is more well-known for allowing large-scale organizations to have important global meetings with thousands of attendees at the same time. The main reasons for its success are Zoom meetings and chat and Zoom Rooms and Workspaces.

How Can I host a Zoom Meeting?

You will host a meeting in Zoom by following the steps below.

  • Install the Zoom application
  • If you haven’t already, open the app on your smartphone and click on Sign Up Free.
  • If you don’t already have the app, go to and click Host a meeting to begin the process.
  • Sign in by submitting the basic details.
  • Click the downward arrow.
  • Start with a video > New meeting.
  • You can also attend a meeting by tapping Join a meeting.

How does Zoom make money?

As previously mentioned, Zoom provides free video meetings and chat to both companies and individuals. Its free and premium business plan allows hundred people to attend meetings for Forty minutes at a time.

Zoom’s paid package, on the other hand, provides consumers with more members, timings, and advanced functionality. It enables you to hold community gatherings with up to 10,000 people at once.

Let’s look at how Zoom makes money with its premium offers and other utilities.


Zoom offers four products that raise the majority of its sales. It still has some outside funding, but it can now mainly fund itself by commodity sales. These product packages have a high level of connectivity and interactive elements. Moreover, Zoom has made it very simple to set up a digital subscription that covers hardware leasing or purchase, audio communication, videoconferencing, interactive activities, and other features.

1. Zoom Meetings & Chats

Zoom Meetings & Chats is the main offering. This was the first product introduced by Zoom, and it is still the most widely used. Customers will join a video “call” with others using Zoom’s desktop software or smartphone app via Meetings and Chats.

Several pricing rates specify the services are included or omitted in an individual customer’s profile, but the core features remain consistent.

2. Zoom Rooms & Workspaces

Zoom Rooms & Workspaces is the next big offering. This service explores the “conference room” environment, which serves as a structured “office” where workers may communicate rather than a separate meeting or webinar. This product aims to provide a virtual workspace for teams from various locations to collaborate.

As a result, this service suite’s target audience is enterprises. Zoom installs the necessary hardware and resources, which can be bought either from Zoom or adapted from a company’s current computing resources.

3. Zoom Webinars

This is the company’s most recent product line, and it has experienced the most success in the last year. Zoom relies on an easy-to-use interface to hold standalone interactive meetings with others like many other popular webinar services. They can range from small social events to massive online conventions with thousands of participants.

Webinar presenters may share their device’s screen or media, and depending on the subscription level, different types of audience interaction are included. Zoom also supports webinar registration if it is a function that is required.

Any of its services requires an additional license per customer per operation, which is a significant revenue generator.

4. Zoom Phone

Zoom Phone was developed at the beginning of the rise of online-only telephone service. It is mostly aimed at enterprises, replaces a conventional landline telephone with a cloud-based program. Moreover, Zoom Phone has all of the standard office mobile functions – call pending, voicemail, conference lines, and much more – making it a natural substitute for the landlines.

It also integrates smoothly with Zoom’s other offerings, ensuring a consistent experience with both audio and video calls. Since it is mainly aimed at corporate clients with thousands and thousands of contact information to converting, this has proven to be a profitable sales category for Zoom.

If you’ve come to know Zoom Phone, you can use these extra features to improve your experience.

  • Messages.
  • Voicemail messages
  • Call logging or blocking are options.
  • Call routing based on artificial intelligence.
  • Calls may be redirected using auto-attendants and IVR software.
  • Ensure high-quality audio for direct communications.

Models of Subscription

Zoom is a subscription service for most of its users. Zoom charges individuals and companies a fee to access its content rather than relying on word-of-mouth and mainstream use to raise funding. This makes common sense given the enormous resources needed to keep the business alive and afloat. For the large majority of Zoom users, there are actually four costs “tiers.” These tiers are mainly concerned with their interactive Meeting or Webinar offerings.

1. Basic

Its first tier, Basic, is an unpaid model that only offers the most basic and essential features.

Although a Basic user can hold an infinite number of meetings, each meeting can only have up to 100 attendees and has a meeting length of 40 minutes. Some extra features are available, but it lacks some of the specialized features that a company may need. Having said that, this rate is adequate for the requirements of many regular users

2. Pro

Pro is the second rank up and the first paying tier. This tier provides additional administrator functions such as attendee control (determining who is and is not permitted to use a conference room) and conference recordings.

Some functions are missing, so this tier is suitable for small companies that use Zoom’s services on a semi-regular basis but do not need a more complex operating model.

3. Business Tier

The Business tier is the first to provide a minimum purchase depending on the number of “hosts” or users.  This amount of purchasing necessitates the purchase of at least ten permits, but with this added financial investment comes additional levels of operation. This type of corporate accounts includes committed support, administrative management for the company’s program, elimination of Zoom branding, and incorporation of the brand identity.

4. Enterprise

Enterprise is the last and most costly tier. This needs a minimum of 50 hosts, making it an attractive option for larger companies. This package contains all of the benefits of the lower levels and expanded offerings such as unrestricted cloud storage, a dedicated customer service agent, and other bundled offers on premium items.

Designed for Specific Industrial Sectors

Zoom now has a specialized package of its tools and resources for the following industries:

  • Healthcare
  • Education
  • Government
  • Finance

Conclusion: How does Zoom make money

Zoom became popular with the general public when citizens discovered that Zoom and its free plan met their remote working needs during the COVID-19 pandemic, which forced the closure of all businesses.

On the other hand, Zoom had been prominent among the business crowd long before work from home became popular. This application is being widely implemented by colleges, owing to the fact that it is free for K-12 students in many countries. This aided in increasing the word-of-mouth presence.

Hope wee answer all the questions about how does zoom makes money.

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