How WordPress Makes Money? A Comprehensive Guide for Beginners

Introduction

With an overall market share of more than 43% worldwide,And that is exactly why WordPress has been the web development platform of choice for thousands (if not millions) website designers and developers! So as you might have heard before that WordPress is free and open-source, then how does this company makes money? That hard and extensive outreach on a global basis, for free – there must be some monies behind the curtains somewhere, no? This post aims to explain just how WordPress — and its parent company Automattic in particular — makes that money, while giving you a greater understanding of the ecosystem at large around WordPress which helps developers and users alike make some cash too.

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What is WordPress?

WordPress is an open-source content management system (CMS) that allows users to create and manage websites without needing any heavy technical knowledge. Whether you’re a blogger, small business owner, or even a large company, WordPress provides the flexibility to build a website suited to your needs.

Two Versions of WordPress: What’s the Difference?

Before diving into how WordPress makes money, it's important to clarify that there are two different versions of WordPress: WordPress.com and WordPress.org. This distinction is key to understanding the platform’s revenue streams.

WordPress.com

WordPress.com is a hosted version, meaning all the technical aspects like hosting, security, and updates are managed for you. It’s free for basic sites, but WordPress.com offers a variety of paid plans that include advanced features, such as custom domains and e-commerce functionality. Think of WordPress.com as the “easy mode,” where everything is taken care of for you.

WordPress.org

WordPress.org, on the other hand, offers free software that you can download and use to host your own website. This version is more flexible and gives you full control, but you’ll need to handle hosting, security, and updates yourself. Even though the software itself is free, there are still ways WordPress generates income through this version, as you’ll see.

How WordPress.com Makes Money

Paid Plans and Subscriptions

One of the main ways WordPress.com generates revenue is through a freemium model. The basic version is free, but if you want access to more advanced features—like a custom domain, more storage, or e-commerce capabilities—you’ll need to upgrade to a paid plan. These plans range from Personal (for bloggers) to Business and eCommerce (for more complex websites).

Advertising Revenue

For users on the free plan, WordPress.com places ads on their websites. WordPress makes money by earning advertising revenue from these ads. If users want to remove the ads, they can upgrade to a paid plan, which creates another income stream for WordPress.

E-Commerce Features

WordPress.com offers e-commerce tools for users who want to create online stores. These features are available with higher-tier plans, and WordPress.com also earns a small percentage of each transaction made through these sites.

How WordPress.org Makes Money

Even though WordPress.org offers free software, there are several indirect ways WordPress earns revenue.

Web Hosting Partnerships

WordPress.org partners with hosting providers like Bluehost and SiteGround. When users sign up with these recommended providers, WordPress earns a commission. This affiliate marketing model is one of the most significant revenue sources for WordPress.org.

Premium Plugins and Themes

While WordPress.org software is free, users often pay for premium plugins and themes to enhance their websites. WordPress.org benefits from the marketplace it provides for developers to sell these premium add-ons, sharing in the revenue generated.

Domain Registration Services

Another revenue stream is through domain registrations. WordPress offers the option for users to buy custom domains, and these sales contribute to WordPress’s overall revenue.

Automattic: The Company Behind WordPress

Automattic, the company that runs WordPress.com, also manages a range of other services and products that generate significant revenue.

WooCommerce: A Revenue Powerhouse

Automattic owns WooCommerce, the most popular e-commerce plugin for WordPress. While the basic WooCommerce plugin is free, there are countless paid extensions that add extra functionality for online stores, like subscriptions or payment gateways. This makes WooCommerce a major revenue driver for Automattic.

Jetpack and Other Premium Services

Jetpack, another popular service from Automattic, offers security, backup, and performance features for WordPress sites. Although Jetpack has a free version, many users pay for the premium plans to access advanced features. Jetpack’s paid subscriptions significantly contribute to Automattic’s revenue.

The WordPress Ecosystem: Opportunities for Developers

WordPress isn’t just a platform for building websites; it’s a thriving ecosystem where developers, freelancers, and agencies can make money too.

Selling Premium Plugins and Themes

One of the most common ways developers make money with WordPress is by creating and selling premium plugins and custom themes. These products add extra functionality or design options that users are willing to pay for.

Offering Custom Development Services

Developers can also offer custom website development services for clients who need something more tailored than off-the-shelf solutions. These services can be highly profitable, especially for large businesses that need unique features.

Freelancers and Agencies: Profiting from WordPress

Freelancers and web development agencies use WordPress to offer website-building services to clients.

Building Custom Websites

Agencies and freelancers can create custom WordPress websites for businesses, charging anywhere from a few hundred to several thousand dollars depending on the project’s complexity. WordPress’s flexibility allows them to build anything from simple blogs to fully functional e-commerce sites.

Maintenance and Support Services

After building a website, freelancers and agencies often offer maintenance packages that include regular updates, security monitoring, and backups. These ongoing services create a steady stream of income.

Affiliate Marketing with WordPress

WordPress also opens up opportunities for affiliate marketers to earn income by promoting WordPress-related products.

Hosting and Plugin Recommendations

Affiliate marketers can promote hosting services or premium plugins, earning commissions when users sign up through their referral links. Many WordPress-related products offer generous affiliate programs, making this a profitable avenue for marketers.

WordPress in the Online Education Space

WordPress is also a popular platform for building and selling online courses.

Selling Courses on WordPress

Whether it’s teaching users how to start a blog or how to master WordPress development, many educators use WordPress to sell their online courses. This has become a booming industry, with WordPress serving as the backbone for many educational platforms.

The Open Source Model and Revenue

At first glance, the fact that WordPress is free might make you wonder how it’s so profitable. But the open-source model is actually one of its greatest strengths.

Free Software, Profitable Add-Ons

By offering the core software for free, WordPress attracts millions of users. This massive user base, in turn, drives demand for premium plugins, themes, and services. In this way, the open-source model acts as a gateway to multiple revenue streams.

Conclusion

WordPress is free, but basically WordPress sits on top of a huge money-making empire. Either through the paid WordPress. With WordPress but a platform here in which to make money, either via WP. The beauty of the platform lies in it being open source, adding value to bothWordPress as well its users.

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FAQs

How does WordPress make money if it’s free?
WordPress earns through paid plans, premium plugins, hosting partnerships, and services like WooCommerce and Jetpack.

What is the difference between WordPress.com and WordPress.org in terms of revenue?
WordPress.com generates income through paid subscriptions and ads, while WordPress.org earns through partnerships, premium plugins, and hosting referrals.

Can freelancers make money using WordPress?
Yes, freelancers can build websites for clients, offer maintenance services, and develop custom solutions using WordPress. There are many freelance plaform available in market like: fiverr, Upwork, and many others like these where you can easily sell your services and earn revenue

How does WooCommerce contribute to WordPress’s revenue?
WooCommerce offers free basic functionality but generates revenue through paid extensions that add extra features to online stores.

Why is the open-source model of WordPress so successful?
The open-source model allows users to access the core software for free, creating a massive user base that drives demand for premium services and products.