How does Automattic make money?
How can Automattic, the company behind WordPress, actually make money by making WordPress available for free and offering it as open source software? How, and most importantly, what are Automattic's revenue streams? Matt Mullenweg, founder and inventor of WordPress, has often told us where exactly Automattic makes money and that is no secret and is always communicated transparently. And why not. Time to take a closer look at Automattic's 7 most important sources of income.
- VIP hosting
- Automattic should make the most money through its VIP Cloud Hosting. The company has already secured very large and well-known customers, for example, the Facebook newsroom runs on the basis of WordPress VIP. But also Time.com, TechCrunch, NY Post and many other offers rely on Automattic's VIP Cloud Hosting. This starts with a setup fee of $15,000 and then costs at least $5,000 per month. But everything is included, from hosting, support and technical administration to DDoS protection and regular backups. Automattic's VIP Cloud Hosting is the all-in-one solution for large blogs based on WordPress. For those who want to find out more about price, add-ons and additional services, can do this here. For most bloggers, however, the service is out of the question, if only because of the high costs.
- VIP support
- If you host your blog yourself and can therefore do without VIP Cloud Hosting, there is still the WordPress VIP Support. After all, it comes from the core team behind WordPress and can be very useful and valuable in case of problems. The Basic Support costs $15,000 per year, but you can get up to $250,000 per year, depending on what you expect from the VIP Support. There are also diagnostic add-ons, so the team can check the security of your blog, the general performance or the scalability of your service. This is definitely a worthwhile offer for companies that host their own blogs but would like to have a professional and trustworthy contact person.
- Premium Accounts
- At WordPress.com everybody can run his own blog completely free of charge, but of course these blogs are very limited in their function. If you want to loosen up these limitations a little bit, you have to Buy Premium or Busniness Account. Then you'll have your own domain, more storage space for media content, many more conveniences and above all, no more annoying advertisements that WordPress onst shows on your blog. Premium memberships cost 99 Euro per year, a business account costs 299 Euro per year.
- Which brings us straight to the next point, because WordPress.com displays ads on the free blogs. You don't earn anything at all, after all you already get the free blog, but WordPress refinances the service with this measure. If you don't want to see advertisements on your blog, you have to go for Premium or Business Membership as mentioned above. Or he just uses WordPress.orghosts the blog on its own server or web space.
- Premium Themes
- Who on WordPress.com wants to use a fancy theme for his blog, you have to go for a premium theme. Everyone who hosts his blog himself knows this. In this case WordPress.com the Premium Themes but he buys it himself and therefore also treats himself to a share of the sales price. The average price is about 75 Euro per WordPress Premium Theme.
- premium plugins
- Besides themes, Automattic also earns a lot of money with its own plugins. Polldaddy, Akismet, WooCommerce, VaultPress and what they're all called. Most of them are available for a fee or in a paid version, solve problems that everyone has and are used by many bloggers in the paid version. So with the Premium Plugins a lot of money should be washed into the till.
- WordPress transfer
- Who is with WordPress.com starts blogging, he quickly reaches the permitted limits. For some people this is not bad, they order a premium account and are satisfied. For others, however, all this is not enough, they want more, they want full control over their blog and hardware. So that nothing goes wrong, the transfer taken over from Automattic will be. However, this will cost $129 and take up to 24 hours. After ordering, you will be contacted, discuss an appointment and then the blog will be transferred within the specified period.
Automattic has many revenue streams
As you can see from the points above, Automattic has a variety of lucrative revenue streams. The earnings from the premium themes and premium plugins alone are likely to generate a lot of revenue and the fact that major brands such as Facebook or TechCrunch use VIP hosting or VIP support speaks for itself. All in all, it should not be a problem that WordPress is Open Source, i.e. available free of charge. On the contrary: If WordPress would not be available for free, I would probably never have spread it that much.