Zoom Business Model: How Does Zoom Make Money

Zoom has been around since 2011, and its business model has evolved dramatically over the years. Zoom is different from other businesses in that they don’t sell anything. It’s a cloud-based video conferencing service. The way that Zoom captures leads and turns them into customers is through its free app. They can make a profit through selling advertising and hosting events for their customers. In this blog post, we’re going to look at how zoom makes money.

Zoom makes money from video calling. Zoom offers a video calling platform used by customers around the world. These customers use Zoom to connect with friends and family for free video calls that can happen anytime and are not limited by your device.


What is Zoom?

Zoom is a new way to have group video conferencing. Zoom’s technology allows you to connect with people from anywhere in the world. You don’t need expensive equipment, and you don’t even have to go to the same place.

In addition to video calling, Zoom offers other services, including customer support, web conferencing, online meetings, webinars, online training, and presentations.

Zoom makes money by selling video calling credits to its customers. These customers pay for the video calling credits they use. The company makes money by charging its customers for video calling credits.

Video Calling Credits:

Video calling credits are credits you receive for using Zoom’s video calling platform. These credits are similar to a credit card in that you can use them to call people.

How Does Zoom Works?

Zoom is a SaaS app that uses technology to allow you to connect with people. It uses its own proprietary technology called ZRTP (Zoom Real-Time Transport Protocol). It is the same technology that companies like Skype and Google use.

When you connect with someone on Zoom, you’re actually connecting with their Zoom server. This Zoom server is like a call center for your calls. When you make a call, it is related to Zoom’s server. Zoom’s servers are in a secure data center that is monitored by a security team.

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Naturally, you don’t need to know how it works to use it. You need to know how to sign up and use it.

Zoom has a customer support team that you can contact if you need help. This team is available 24/7 to help you with any problems that you may have. You can use the live chat on the website to contact the team.

Zoom has a free Basic Plan that includes unlimited meetings and is supported by ads. There is no time limit on how long you can use Zoom. The Basic and Pro plans allow for unlimited one-on-one sessions, with each meeting lasting no more than 24 hours.

How Does Zoom Make Money: Business Model

Zoom’s business model is to sell video calling credits. It is a form of virtual currency used to pay for the services Zoom offers.

When you sign up for Zoom, you’re prompted to select the amount of video calling credits you’d like to purchase. It is similar to the amount of money you would use to pay for a phone call. You can purchase as many video calling credits as you’d like. The price of the credits varies based on the plan you choose.

Zoom follows a ‘Freemium’ business model. It means that it is free to download and use for everyone, but there is a premium subscription option for those who want more features and customization.

Zoom generates revenue from a variety of sources. We’ll go over each revenue stream individually so you can see how does Zoom make money.

Zoom’s Revenue Streams:

Zoom offers four revenue streams. The company earns revenue from:

  1. Online Meetings and Chats
  2. Workspaces and Rooms  
  3. Web Conferencing and Video Webinar
  4. Zoom Phone

Online Meetings and Chats

The online meetings and chats are the core of Zoom’s business. These services are free for all customers. Zoom charges for its services, but they are very affordable.

Zoom’s online meetings and chats are used for meetings, presentations, etc. You can create your meeting room on the website. The rooms can be shared with up to 100 people. You can also invite others to join your meeting room and create a meeting room on the website. You can invite others to join your meeting room.

The only limitation is that meetings involving more than two people cannot last more than 40 minutes. Users can choose between three paid plans: Pro, Business, and Enterprise, including additional features such as cloud storage, recording capabilities, and more.

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Pro Plan:

The Pro Plan allows for a $14.99 per month license. Subscribers can host meetings for up to 100 people with a time limit of 30 hours!. They also get 1GB of cloud storage for recording and replaying discussions and the option to stream social media.

Business Plan:

Subscribers can host meetings with up to 300 participants. All included single sign-on, recording transcripts, managed domains, and company branding. The business plan costs $19.99 per month per license.

Enterprise Plan:

Subscribers to Zoom’s Enterprise plan get all of the benefits of the business plan plus more. Subscribers get unlimited cloud storage and the ability to host meetings with up to 500 people. The enterprise plan is also a $19.99 per month license.

Workspaces and Rooms  

Zoom’s workspace and rooms are used to host collaborative spaces for work. Workspaces are free to use for everyone. Rooms features are:

  • One-click joining,
  • 1080p HD video and audio,
  • 1,000 video participants or 10,000 webinar viewers,
  • calendar integrations and many more are available in Rooms.

Each license costs $49 per month (or $41.58 per month if paid annually).

Web Conferencing and Video Webinar

Zoom also generates revenue by hosting video webinars. Users can host webinars with up to 10,000 people using Zoom Video Webinar. Zoom Webinar costs $79 per month per license for 500 attendees and $6,490 per month per license for webinars with up to 10,000 participants.

Zoom Phone

Zoom’s Phone service is a $7.99 per month subscription that allows subscribers to call other users for free. It is a significant revenue stream for Zoom. 

It enhances the Zoom experience by including extra features like:

  • Auto Attendants & Intelligent Call Routing
  • Secure HD Voice Integrations with Microsoft Office, Salesforce, and Google Workspace
  • Voicemail and call recording

Zoom also makes revenue by charging special packages for Education, Finance, Healthcare, and Government organizations and its marketplace, which allows users to install third-party apps such as Slack, Salesforce, and Trello.

Frequently Asked Questions

What is Zoom?

Zoom is a real-time communication and collaboration platform. The platform allows users to communicate and collaborate with others over the Internet using video, voice, and text.

How do I join a Zoom meeting?

You can join a Zoom meeting by going to the Zoom website and clicking on the “Join” button. You will be prompted to sign in with your Zoom username and password.

What is Zoom’s business model?

Zoom has a freemium model, which means that it offers a free service and also a premium service.

Is Zoom’s video calling free?

Zoom’s free service is called Zoom Rooms, and it allows users to create virtual meeting rooms for up to 100 people.

How can I see who is in a Zoom meeting?

To see who is in a Zoom meeting, you need to click on the Meeting List button in the top right corner of the Zoom website but for a limited time.

How do I record a Zoom meeting?

You can record a Zoom meeting by clicking on the “Record” button. It will allow you to capture a video of the meeting.

Is Zoom free to use?

Yes, Zoom is free to use for individuals.

How do I join a Zoom meeting with people outside my organization?

You can invite other people to a Zoom meeting by going to the Zoom website and clicking on the “Invite” button.

Final Verdict

We hope you enjoyed our blog on how does Zoom make money. Zoom is a very popular business tool that offers online meetings for businesses. It makes meetings more effective by allowing participants to share one screen and work collaboratively. It is free to use, and they monetize by offering premium features (such as whiteboards and voice notes) that you can purchase. These features can be enough reason to use Zoom for many small businesses. Thank you for reading!

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 Christianthut.com, Entrepreneur Business Blog, and How To Start A Small Business.