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How Much Revenue Does WordPress Make? Insights & Breakdown

WordPress is everywhere—from small personal blogs to massive e-commerce stores. But have you ever wondered, how much revenue does WordPress actually generate? If you’re curious about the financial success of one of the internet’s biggest platforms, you’re in the right place. In this blog, we’ll break down WordPress’s revenue streams, where the money comes from, and why its business model is so successful.

What is WordPress and How Does It Make Money?

Before we dive into the numbers, it’s important to understand what WordPress is. WordPress comes in two forms:

WordPress.org – This is the open-source, free version that anyone can download, customize, and use on their own hosting platform.
WordPress.com – This is a for-profit version run by Automattic, where users can create websites without worrying about hosting or technical maintenance.

While WordPress.org is free, WordPress.com is where the real money is made. This distinction is crucial because most of the revenue we’re about to discuss comes from the WordPress.com ecosystem.

Sources of WordPress Revenue

So, where does WordPress’s money come from? Here are the main revenue streams:

1. Premium Plans and Subscriptions

WordPress.com offers paid plans for users who want access to premium features like custom domains, additional storage, and e-commerce functionality.

Pricing Tiers: Personal, Premium, Business, and eCommerce plans.
Revenue Model: Users pay monthly or annually, generating predictable, recurring revenue for Automattic.

Fun Fact: The eCommerce plan alone costs about $45 per month, making it one of the higher-end offerings.

2. Website Hosting Services

While WordPress.org requires users to get their own hosting, WordPress.com provides “done-for-you” hosting services. Businesses, bloggers, and entrepreneurs pay for convenience and security.

Revenue Model: Hosting fees are charged on a recurring subscription basis.
Key Players: Bluehost, SiteGround, and Kinsta also contribute to WordPress’s indirect revenue, as many of these companies have affiliate relationships with Automattic.

3. Domain Registration

Want a personalized domain name for your website? WordPress sells domain names directly through its platform. This makes it easier for users to create branded websites, and WordPress earns a cut on every domain sold.

Revenue Model: Domains are typically sold as annual subscriptions (e.g., $20/year for a custom domain).
Why It’s Smart: By controlling domain registration, WordPress makes it easier for users to stay on its platform and renew annually.

4. E-Commerce and WooCommerce

One of the biggest moneymakers for WordPress is its e-commerce arm, WooCommerce. WooCommerce is a plugin that turns any WordPress site into an e-commerce store. It’s free to download but offers paid extensions, themes, and services that generate significant revenue.

Revenue Model: WooCommerce earns revenue from premium plugins, payment processing fees, and add-ons for e-commerce functionality.
Interesting Note: WooCommerce powers over 28% of online stores worldwide, making it a significant source of revenue for WordPress.

5. Advertising and Sponsored Content

If you’re on a free WordPress.com plan, you’ve probably noticed ads on your site. These ads aren’t random—they’re revenue-generating tools for Automattic.

Revenue Model: WordPress shows ads on free websites and takes 100% of the ad revenue. Users can only remove ads by upgrading to a paid plan.
How It Adds Up: Since millions of free sites exist, ad revenue from these sites is substantial.

6. Affiliate Marketing and Partnerships

WordPress has strategic partnerships with hosting providers, theme developers, and plugin creators. For instance, when someone signs up for Bluehost hosting through WordPress.org’s recommendation, Automattic earns a commission.

Revenue Model: Affiliate commissions from third-party companies.
Why It Works: Since WordPress recommends hosting providers, users often trust its recommendations, leading to high conversion rates.

7. Freemium Plugins and Themes

While the WordPress core software is free, premium plugins and themes are often paid. WordPress itself sells premium themes, and Automattic owns several of the most popular plugins, including Jetpack and Akismet.

Revenue Model: One-time purchases, subscriptions, and SaaS-based fees for premium plugins and themes.
Example: Jetpack offers both free and paid plans, giving users access to premium security, performance, and design tools.

How Much Does WordPress Revenue Annually?

If you’re wondering how much WordPress actually makes, let’s look at the estimated figures. While WordPress.org does not generate direct revenue, Automattic (the company behind WordPress.com) generates over $750 million annually.

Here’s the Breakdown:

Subscriptions (Plans, Hosting, Domains): 40-50% of total revenue.
WooCommerce: 30-40% of total revenue from e-commerce extensions and payment processing.
Advertising: 10-15% from ads shown on free sites.
Plugins and Themes: 5-10% from premium plugins and theme sales.

Fun Fact: Automattic raised $300 million in 2019 from Salesforce, valuing the company at over $3 billion.

Why Does WordPress’s Revenue Model Work So Well?

What makes WordPress so profitable? It’s a combination of several powerful factors:

Freemium Model: Offer basic services for free and charge for premium features.
Recurring Revenue: Most income comes from subscription-based products (hosting, domain renewals, etc.).
Wide User Base: With over 43% of the web powered by WordPress, its large audience creates a natural sales funnel for premium services.

Final Thoughts on WordPress Revenue

So, how much does WordPress revenue? It’s safe to say that WordPress’s financial success is nothing short of extraordinary. Thanks to its diverse revenue streams like paid plans, WooCommerce, advertising, and partnerships, Automattic’s annual revenue exceeds $750 million. This unique business model—a blend of open-source software with premium paid services—is one of the main reasons why WordPress is so profitable.

Whether you’re a business owner looking for inspiration or a curious observer fascinated by tech giants, WordPress’s revenue story is a prime example of how giving away a product for free can still be a massive financial win