How Does Zoom Make Money?

In the world of video calls and video conferences, ‘Skype’ is probably one of the first names that pops up in our head. For years, the platform that Skype provides has been the main focal point for all official and private video call sessions. However, these years saw the creation of many other video calling apps specifically, that pushed Skype a little further back the road.

Just recently, especially during the time of the coronavirus lockdown, the platform that has gained a considerable amount of attention is ‘Zoom’. During these difficult times Zoom became a critical tool for corporations to conduct their daily official meetings and for students to attend their classes online.

Most of you must have had first hand experience with Zoom, especially during lockdown. A large number of us were able to access it for free and thus the question of how does zoom make money if it is free? Keep on reading this article in order to find out.

How Does Zoom Work?

Zoom is a cloud-based SaaS application that permits people and organizations to basically interact with one another virtually. It is an ideal platform for having private conversations as well as conducting professional business meetings. Correspondence can happen by means of chats, sound, video, or a mix of the three.

Clients can hold one-on-one gatherings or direct video meetings with up to 500 members. Screen sharing permits meeting members to coordinate better during gatherings and circulate data, which makes the entire experience very organized.

The overall appropriation of Zoom is fueled by its two central products: Zoom Meetings and Chat, and Zoom Rooms and Workspaces.

Zoom Meetings can be joined in and held with the help of an internet browser, or desktop and mobile applications. The Chat functions as an extension to the Meeting product where clients can interact with one another through a chat. Moreover, they can even share documents, or create groups.

On the other hand, Rooms and Workspaces, permits corporations to use hardware such as a computer, tablet, camera, microphone, and more to organize virtual meetings. The product is particularly targeted at larger-scale organizations, where it is important and a daily need to hold meetings across different offices.

To make mixing with the hardware simpler, Zoom even offers its own arrangement of hardware that they created as a team with different makers (remembering the Poly X Series or DTEN ON).

Other products that have been developed by Zoom are:

  • Zoom Phone, a cloud telephone framework that accompanies various features, for example, smart call routing, automated attendants, voice messages, voice mails, dialing personas, call recording, and some more
  • Zoom Video Webinars, a conferencing device that permits organizations to effortlessly direct enormous online functions with sound, video, and screen sharing
  • An application commercial center, where existing clients can introduce outsider applications, for example, HubSpot, Slack, or Trello to improve the usefulness of the product experience
  • Zooms applications and hardware products are accessible all over the globe. The organization considers overall famous organizations clients, including the preferences Uber, Rakuten, TransferWise, and some more.

Zoom Meetings & Chats

Zoom Meetings and Chats is the organization’s lead product, permitting individuals to bounce on a (video) call or chat over the application. Clients can get to the application through numerous sources, including Zoom’s work area or versatile applications. The free form limits utilization time to 40 minutes while restricting client tally to 100 participants. To lift these limitations, clients should pay a month to month membership fee. Organizations should pay $14.99 when charged month to month or $12.49 for yearly charging.

Zoom Rooms & Workspaces

Zoom Rooms are conference room frameworks that permit associations to run video conferences. Clients can use their current equipment suppliers, for example, Polycom and Cisco or buy from Zoom-confirmed equipment suppliers. The organization’s Professional Services unit at that point guarantees that the establishment of conference rooms runs as easily as could reasonably be expected. Clients are charged a month to month membership expense, which comes in at $49 every month per introduced meeting room (or $41.58 every month when charged yearly). Moreover, Zoom partners up with producers like DTEN or Aver to furnish their clients with the important equipment instruments. In all likeliness, these suppliers pay a level of each equipment deal to Zoom. Consequently, Zoom will make a point to elevate their items to the organization’s clients.

Zoom Phone

Zoom Phone is a cloud-calling arrangement intended for clients who need to have speedy calls without video. All things considered, clients can dispatch a VoIP call while utilizing similar Zoom instruments that are accessible in its Meetings product. Other various highlights and features include:

  • An call management and routing system that is supported by artificial intelligence
  • Auto-attendant and IVR tools that redirect calls to the most qualified agents
  • Call recording and voicemail
  • Safe HD audio for clear conversations

Apart from these, it also has many others features as well. Just like with its other products, Zoom charges a monthly subscription fee of $14.99 for every host (or $12.49 for each month when charged yearly).

Zoom Video Webinars

Zoom Video Webinars is a web conferencing administration that permits clients to communicate a Zoom meeting to up to 10,000 view-only participants. Webinars start at a limit of 100 members and scale up to 10,000 members, contingent upon the permit purchased. As the coordinator of the webinar, one can share your screen, video, and sound. Moreover, participants can utilize the visit or question and answer choices to connect with the online course host. Enlistment for webinar may either be discretionary or obligatory, contingent upon the protection settings picked. Webinars can either be held once, reoccur progressively, or a similar meeting can be held different occasions. Webinars valuing begins at $14.99 every month and client (when charged month to month). What’s more, is that a webinar permit must be bought. The cost relies upon the quantity of participants facilitated.

Is Zoom Free To Use?

How much does zoom cost? This is a question one might ask, considering that most of us are new to the platform and paying for it in the current economic crisis sounds difficult. The utilization of the stage is free for video meetings of up to 100 members, with a 40-minute time limit. Most people when they hear this, often question back, does zoom make you pay? For more or bigger gatherings with more features, paid memberships are accessible, costing $15–20 every month. The features that are outfitted towards business meetings, for example, Zoom Rooms, are accessible for $50–100 every month.

How Does Zoom Make Money?

How does zoom make money if it is free? This is another question that we often come face to face with. The corporation brings in its cash from deals of memberships and subscriptions to its platform , of which there are four levels it presently offers.

The first is it’s free level, which it calls Basic; that one accompanies the capacity to have up to 100 members, a boundless number of gatherings and brief breaking points on bunch gatherings.

The following level is the Pro arrangement, which costs $14.99 every month per host. It likewise incorporates user management, administrator feature controls, custom individual gathering IDs and 1GB of MP4 or M4A cloud recording.

The third arrangement is called Business and it costs $19.99 per month for each individual host, with at least 10 hosts. It incorporates committed telephone support, an administrator dashboard, a vanity URL, the choice for on-premise organization, overseen areas, company banding, and custom messages.

The most costly arrangement is Enterprise, which is for $19.99 per month for each individual host, with at least 50 hosts. The highlights of this level are boundless distributed storage, a committed client achievement supervisor, executive business audits and bundle discounts on Webinars and Zoom Rooms.

The three paid plans all accompany the capacity to add 100 members, yet that number can be expanded for an extra fee. On the Pro arrangement, 500 members is $64.99 every month for each host, while 1,000 is $104.99. On the other hand, with Business and Enterprise designs the expense is $69.99 or $109.99 every month for each host.

Why is zoom so successful?

As the Covid pandemic has constrained millions around the globe to remain in their homes, this 9 year old platform has developed as the go-to support for virtual gatherings and classroom exercises as well as cheerful hours, costume parties, church gatherings, informal breakfasts, book clubs and even romantic dates. Like Facebook and Twitter, it has likewise become a critical element of web culture: The Facebook Group “Zoom Memes for Self Quarantines,” with almost 395,000 members, offers a constant flow of jokes, going from a video of a student imagining Zoom is glitchy to escape a schoolwork task, to a teacher beginning an exercise with appearances from stuffed toys.

From the beginning, Zoom sought to stand out in a market full of products that were likely more abhorred than adored. In a letter to investors included with its administrative work for opening up to the world a year back, creator and CEO Eric Yuan discussed “how unhappy” individuals were with the videoconference apparatuses available.

As of late, Zoom has emerged as the most downloaded application on the Apple App Store, more than once breaking its download records. On Monday March 23, Zoom was downloaded 2.13 million times around the world, which was an increase from 2.04 million downloads of it the day before, as indicated by application tracking firm Apptopia. Two months earlier, the application had just shy of 56,000 worldwide downloads in a day.

In any case, there are also some disadvantages, to such quick development and the additional attention that accompanies it. Like more customary informal organizations, Zoom presently faces worries about security, privacy and online provocation and harassment. As of now, the expression “Zoombombing” has developed for when bored quarantine trolls and hackers take over public video chat forums by showing graphic substance or bigoted remarks to create a ruckus. Chipotle, for instance, affirmed to CNN Business that during its new open video visit arrangement, Chiptole Together, a Zoom member showed ponography to all participants. The organization has since changed the platform it uses. The episode was first detailed by the New York Times.

Simultaneously, Zoom must attempt to keep its administration ready for action in the midst of flooding interest for online communication devices and interpersonal organizations that have strained far greater stages, including Facebook and its corporate kin Instagram.

To deal with this flood, Zoom representative Farshad Hashmatulla revealed to CNN Business that it depends on its data server in 17 worldwide areas, steering both sound and video traffic to these destinations. He said the organization’s strategy well before the global health emergency has been to ensure it can uphold twofold its normal day by day pinnacle of use and can send a huge number of extra workers inside hours if necessary.

Notwithstanding some technical bumps, (for instance, Microsoft’s communication and chat platform Teams encountered a significant blackout in Europe a week ago) these central members have dealt with the development amazingly well. However, it is Zoom’s capacity to address the issues of individuals working distantly and fill in as a pleasant device for mingling that has elevated it to rockstar status.

Wayne Kurtzman, who tracks tele-conferencing platforms for IDC which is a market research firm, said that “Zoom is seeing the biggest increase because its product is easier and more robust than others and it’s at the right time when people really need it”. Moreover, he also added that “when it comes to work, people want the same ease of collaboration they get in the office or in person — and [in many ways], Zoom delivers this.”

Inevitably, investigators state it should add new highlights to urge individuals to pay for the administration. For the present, organizations are generally wary to turn out new apparatuses as their far off groups get settled at home and stay zeroed in on ensuring everything works.


For the financial year that finished in 2019, Zoom had an income of $330.5 million, which was 118 percent more from $151.5 million in 2018. That itself was up 149 percent from $60.8 million in 2017.

In only two years Zoom has seen income develop by over 5 times. In addition, the organization is presently observing a benefit; in the wake of losing $3.8 million in the financial year finishing in 2018, it had a net gain of $7.6 million throughout the most recent year. Some portion of Zoom’s model is getting free clients to become paying clients, the organization wrote in its S-1 documenting with the SEC.

For the monetary year that finished on January 31 of this current year, the greater part, 55 percent, of Zoom’s 344 clients that offered more than $100,000 of income began with at any rate one free host before subscribing. Those clients presently make up 30% of the organization’s income. Established in 2011, Zoom had brought $160.5 million up in subsidizing from financial specialists that included Sequoia Capital, Emergence, Horizons Ventures, Maven Ventures, AME Cloud Ventures, Qualcomm Ventures and GC Capital.