Business Model of Wix | Complete Guide

Today websites have become an integral part of any business as they give you opportunities to expand your business; Websites help organizations create an online presence, which eventually leads to better marketing of your company. 

Also, they give your business credibility and provide directions to your shop/ establishment to your clients. They also host a bunch of testimonials, which helps generate trust and reliability among potential customers. 

Your website should be well designed, informative, and up-to-date to create credibility and strengthen your company; however, the question remains How to create a website as not everyone is tech-savvy or a computer science engineer who can develop websites. For such people, Wix is their go-to tool. Wix lets you build websites without demanding specialist skills; you do not even need to hire web developers. 

In this blog, we will tell you about the Wix Business Model. So stick around if you are interested in using Wix or developing a similar tool to Wix.

What is Wix?

Wix or Wix.com, an Israel-based company, provides cloud-based web development services to people who lack the skills to build a website. Wix allows users to create HTML5 websites and mobile sites using online drag and drop tools. Wix offers the following options:

1. Wix Editor
2. Wix ADI (Artificial Design Intelligence)
3. Corvid by Wix

Avishai Abrahami, Nadav Abrahami, and Giora Kaplan established Wix in 2006.

Before we read about the Wix Business Model, let us have its overview.

Overview of Wix

• Type: Public Company
• Traded as: Nasdaq: WIX
• Industry: Internet
• Founded: 2006; 16 years ago
• Founders: Avishai Abrahami, Nadav Abrahami, and Giora Kaplan
• Headquarters: Tel Aviv, Israel
• Number of locations: 19 (2021)
• Area served: Worldwide
• Key people: Mark Tluszcz (Chairman)
• Avishai Abrahami (CEO)
• Products: Online services for stores, bookings, hotels, restaurants, videos, music, shoutout, answers, logo maker
• Services: website builder, Business Management, Web hosting service
• Revenue: US$1.3 billion(2021)
• Operating income: US$47.24 million (2018)
• Total assets: US$1.1 billion (2016)
• Total equity: US$20.00 billion (2020)
• Owners: T. Rowe Price (14.1%), Mangrove Capital Partners (9.7%), 
• Steadfast (8.5%), and Fidelity Investments (5.5%)
• Number of employees: 5,000 (2021)

Website: www.wix.com

Let us now see the products of Wix before reading the Wix Business Model.

Products of Wix

Creation Platform

It includes the following things:

• Website designs
• 800+ designer-made website templates
• Advanced web development with WIX Editor X
• Logo maker
• Blog website

Website Essentials

Website Essential offers the following things to users:

• Domain name 
• Free web hosting
• Website security 
• Analytics, Roles & Permissions
• Mobile app and multilingual website
   

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Wix for Enterprise

Wix for Enterprise helps create, collaborate, launch and manage your projects at scale with the latest technology and tools suitable for your business needs.

eCommerce Platform

It lets users build an online store, manage orders and fulfillments, dropshipping, services and memberships, etc.

Business Tools

Business Tools consist of online scheduling, business email, phone number, ascend business solutions, analytics & reports, and app integration.

Boost Website Traffic

Wix also provides tools for SEO, email marketing, social posts, video making, and Facebook Ads(using Wix’s AI optimization) to its users.

Engage your Clients

Wix offers lead capture tools, financial tools, CRM by Ascend, mobile app, and community management to users to engage their clients.

Hire a Partner

Wix even finds the right business partners for entrepreneurs. For this, you need to choose either a freelancer or an agency that perfectly fits your website needs. WIX allows you to connect with Coders and developers who specialize in developing sites on WIX. All the Wix tools and products suit the goals of any modern business.

WIX Mobile App

The Wix mobile app allows users to convert each site developed using WIX into mobile apps.  

To fully understand the Wix Business Model, we first need to understand what a business model is.
 

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What is Wix's business model?

A business model acts like a plan that your company uses for making money that explains how you deliver value to your customers at a reasonable cost; it consists of your product descriptions, services, target audience, and the needed expenses. It gives entrepreneurs the freedom to experiment, test, and model different ways to structure costs and revenue streams. 

Now it is time to go through the Wix Business Model.

Wix business model

The Wix business model revolves around the freemium model, and Wix offers a dedicated CRM for business customers to manage their customer data and operations. 

Besides it, Wix also offers more than one thousand innovative features and has over 180 million customers in about 190 countries globally. The Wix platform is a cloud-based web development enabling users to create, manage and grow their business using its tools. 

Website development would not be an easy task had it not been for Wix. Today anyone can build a website, thanks to Wix. Wix provides people with drag and drop tools, editing tools, and numerous designer-made templates for website creation; it reduces coding with these tools.

To beat its rivals, Wix also offers the following things:

• Domain Registration
• Logo creation services
• Web hosting
• SEO
• Marketing services
• A mobile app version of each site 

The Wix business model offers both free and paid versions. The free version has limited features, whereas the paid version offers several features and premium assistance. 

The Wix business model earns its profit by charging its customers for its products and services( a lump sum or subscription) dependent on the selected products and services.

That is all about the Wix business model; let us see how Wix generates its income below.
 

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Revenue Sources for Wix

Paid users are the source of Wix income. Let us now see how this happens. The free version of Wix acts as bait to make customers use the paid version, and the following are the way Wix earn

Premium Plans

The premium version offers creating a website, connecting it to a domain, domain registration, storage, and bandwidth to priority customer support. 

The categories of the Wix tool are Connect Domain plans, Combo Unlimited, and VIP. Based on your chosen version, you get to pay for using Wix. The fee generally ranges from $4.40/month to $12.25/month for premium plans. In addition to it, the type of website you want it for also dictates the fee you pay; different prices for business and eCommerce. 

App Market

Wix lets third parties build and publish different applications, which further extends the features of Wix on its app market. The applications can be customized pop-ups, statistics, live chat, maps for enhancing user experience.

Both free and paid versions of Wix enjoy the third-party apps; it shares the revenue generated by such premium apps from third parties.

Domain Registration

Users are free to buy and register a domain on Wix at a specific value based on the domain extension, the number of years, privacy protection, and tax. Although it offers premium members free domain and registration for one year, it charges for other features. The other features include privacy protection, taxes, etc. Also, it garners money from premium members after the offer expires.

Logo Maker

Wix allows its customers to create their own logos for their websites. Besides it, Wix allows its users to blog easily using its Logo Maker. But there is a catch, Wix charges a one-time fee to download the image and get usage rights. The prices depend on the resolution and add-ons and range from $12.99 to $49.99.
 

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Mailbox

Customers and their employees get dedicated email addresses through Mailbox by Wix linked to either Microsoft or Google applications. The Wix Mailbox offers numerous benefits and comes at a monthly subscription fee.

Wix shares this revenue with Google and Microsoft because it partners with them to offer these email services.

Ascend by Wix

Ascend by Wix, a CRM tool, helps businesses engage with their customers and build strong customer relationships to promote their businesses. The tool helps manage tracking leads, managing customer interactions, automating email responses, enabling chat features, etc.

Wix offers Ascend users three types of plans and charges every month.

SEO & Marketing Tools

Wix helps businesses rank higher on search engines and reach wider audiences with its SEO and marketing services. The services comprise SEO tools, email marketing, Facebook Ads, etc.

It does not require any extra plugins.

These are the sources of Wix revenue. 

Conclusion

Tools like Wix help people who want to create their websites for their business but do not have the skills and resources. Squarespace, Wix, Tilda, and Weebly are a few such tools. If you want to launch a tool like Wix, you need to know about the Wix business model.

Tools like Wix have a great demand in the market (Wix enjoys 196.7 million subscribers as of 2021), and this field has good scope.

If you want to create a custom website for your unique business needs, feel free to contact AppsRhino.

Because when it comes to custom web solutions, AppsRhino makes sure to provide dedicated developers who are skilled in various programming languages so that you need not look anywhere else for your custom development projects:

• Android developers
• Angular developers
• React developers
• IOS developers
• Node developers

Frequently Asked Questions (FAQs)

What are the key features of Wix's freemium model?

Wix's freemium model provides free website building tools, while premium plans offer benefits like domain hosting, removal of Wix ads, and access to advanced design features.

How does Wix attract users to its platform?

Wix attracts users through a user-friendly interface, free basic services, and extensive marketing efforts, promoting its website builder as a simple solution for individuals and businesses.

What is Wix ADI, and how does it contribute to the business model?

Wix ADI (Artificial Design Intelligence) automates website creation, attracting users to upgrade for advanced customization. This feature enhances user experience and drives revenue through premium plan subscriptions.

How does Wix cater to e-commerce businesses in its business model?

Wix offers e-commerce capabilities in premium plans, allowing businesses to create online stores with features like product pages, payment processing, and inventory management, contributing to its revenue stream.

What is the role of Wix Code in the business model?

Wix Code enables advanced website customization and functionality. It caters to users with coding skills, offering a more sophisticated website-building experience, contributing to Wix's revenue through higher-tier plans.

How does Wix handle domain sales in its business model?

Wix facilitates domain sales, allowing users to purchase and host domains directly through the platform. Domain hosting is a revenue stream, especially for users seeking a professional online presence.

Can businesses integrate third-party apps on Wix, and how does it impact the business model?

Yes, businesses can integrate third-party apps through the Wix App Market, expanding functionality. This attracts users seeking specific features, potentially leading to upgrades and additional revenue for Wix.

What are the limitations of Wix's free plan in terms of the business model?

Wix's free plan includes Wix-branded domains and ads, encouraging users to upgrade for a professional domain and an ad-free experience, driving conversion to premium plans and generating revenue.