Grammarly Business Model: How Does Grammarly Make Money

Grammarly is a software company that makes money by selling subscriptions to its online grammar checker. It claims that the tool can help students and professionals improve their writing skills.

The tool can be accessed via browser extensions, apps, and online editor, and a Microsoft Word plugin. This article explores how does Grammarly make money in different ways.
It was founded in 2009 by Max Lytvyn and Alex Shevchenko. They wanted to make it easier for people to write correctly. Today, the company has over 1 million users. It generates revenue through sales and services that help people edit their writing.
Grammarly makes money by selling its products to schools and businesses. The company sells software tools that help users improve grammar and writing skills. Grammarly sells a subscription service that provides users with regular feedback on writing. Besides, the company sells advertising space on its website and its software products.
How Does Grammarly Make Money

How Did Grammarly Become The Top Grammar Checker?

Grammarly provides a platform that helps people improve their writing. It helps them by identifying and correcting common grammar mistakes. The service is free to use. It makes money by selling tools and services that help people edit their writing.
Grammarly is a software company, known for its grammar checking and proofreading services. It has become the top grammar checker in the industry because it is user-friendly, accurate, and affordable. The software comes with a free trial so that users can try it before purchasing it.
Grammarly’s patented algorithm uses a machine learning technique. This technique analyzes text to determine if it is correctly written. In the past few years, it has grown to be one of the most popular and well-known grammar checkers on the market. Its success is the innovative technology, sustainable business model, and global customer base.

How does Grammarly Work?

Grammarly is a free browser extension that improves your writing. It provides elements that help writers enhance their

Grammarly Editor is available online. As well as for a free browser extension (for Chrome, Safari, Firefox, and Edge) for a desktop application (for macOS and Windows), an iOS and Android app, and a Microsoft Word add-on. Grammarly’s products are driven by various AI and cloud solutions. It allows for real-time grammar fixes and continual application improvement.

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It offers a premium plan that provides extra features, such as a plagiarism checker, and a Grammarly keyboard. Users can access these features by signing up for the premium plan. Or purchasing the Grammarly Keyboard.

The free plan includes a limited number of corrections and a reduced speed.
Grammarly claims that its software can help you improve your writing skills by

  • Identifying errors
  • Suggesting improvements
  • And providing feedback on your work.
It also provides context for each mistake to understand why it was made. The premium plan includes more corrections and a faster speed.

How Does Grammarly Make Money?

Grammarly makes money by providing a grammar checker to educational institutions and businesses. The company has a two-part business model. First, Grammarly charges educational institutions for its grammar checker service.
This service helps professors and instructors improve their student’s writing accuracy. Second, businesses can buy a subscription to the Grammarly premium service. It provides users with real-time feedback on their writing.
The company’s subscription model includes features, including a grammar checker and autocorrect. Customers also pay for extra features, such as corrections for spelling and punctuation.
In 2016, Grammarly generated $102 million in revenue. Most of the revenue comes from sales to educational institutions, which account for 61% of total revenue.

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Subscription Plans

Grammarly makes money from subscriptions. The company has two subscription plans: The Basic plan costs $12 per month, and the Premium plan costs $29.99 per month. The Premium plan offers more features than the Basic plan. It includes lifetime updates and support for many languages.
The Grammarly free plan is useful in any of the company’s products. It includes their browser extension and Microsoft Word integration. The free plan’s features are limited to essential writing tips like grammar and spelling mistakes.
It offers many membership levels to consumers and corporations to gain access to premium services. The Business plan provides the same features as the free plan. And it is designed for businesses with teams of 3 to 149 people. Advanced functions such as
  • Tone Identification,
  • Politeness,
  • Sentence Variety,
  • Assuring Conciseness and Readability
Plagiarism detection and more are available with the Premium subscription.

Grammarly EDU

Grammarly makes money by selling its software to schools and businesses and charging for support and training. The company also sells advertising space on its website. In 2016, Grammarly reported bringing in $44 million in revenue.
Grammarly@EDU is a brand of the program that is available to universities and other educational institutions. It is also available for Premium and Business subscriptions. Grammarly now has over 1,000 educational institutions as partners.

Human Proofreading Service

Grammarly has been in business for over 10 years. And it still continues to grow, but how does Grammarly make money? The company primarily relies on human proofreading services. For Businesses, a large majority of their revenue comes from subscriptions. And premium tools to improve their grammar and spelling.
Both businesses and individuals can use the company’s proofreading services. The company will charge a one-time fee for the service, which is for the length of the text and the deadline.
Like any other venture startup, it does not disclose any revenue or profit metrics. Grammarly is still likely to lose money each year because it is still in growth mode.
Some people find the software overwhelming, but it’s one of the most comprehensive options on the market. If you’re serious about getting your writing correct, Grammarly is a must-have.

Frequently Asked Questions

How does Grammarly make money?
Grammarly makes money by selling subscriptions to its online grammar checker.
What is the subscription service of Grammarly?
The subscription service is where you pay a monthly fee to get access to all the features of Grammarly. Grammarly is a subscription-based service that offers users a variety of features to help them improve their writing. The app includes a plagiarism detector, an auto-correct feature, and a spell checker. Grammarly also offers a variety of educational materials, such as grammar tips and templates.
Is Grammarly worth buying?
If you’re looking for a grammar checking tool that will make your writing more accurate, Grammarly is worth the investment. It has a wide range of features, and is available in free and paid versions.

Final Verdict

To sum up, Grammarly is a very successful business because it has found a way to make money by helping people write correctly. By offering a subscription service, Grammarly has made a name for itself. And it becomes the go-to source for people who want to improve their writing skills. If you are looking for a way to improve your writing, I highly recommend using Grammarly. It is the best tool out there for grammar and spelling corrections. We hope you find this guide helpful.
Christian Thomas is a die-hard business enthusiast who loves to share his ideas and experiences with other people. He writes for many websites including, Entrepreneur Business Blog, and How To Start A Small Business.