Patreon’s New Business Model + Increasing Competition

In 2013, Jack Conte was just another YouTuber Creator among a sea of them. Today, he is the CEO of Patreon, the world's leading creator platform, using which creators around the world have earned more than $1 billion as of December 2019. How did he go from being a YouTube Creator, without technical chops, to heading the world's largest creator platform?  Well, Conte’s story is as much his as it is Patreons’. So, let’s look into Patreon’s founding story.  And post that, we will also walk you through a bunch of other stuff -- like how exactly Patreon works, business model...

IaaS Business Model [ Explained Simply ]

On February 2017; Netflix, Spotify, Pinterest, Reddit, Pinterest, Dropbox, Tinder and thousands of other websites were down for 4 hours, including the site (downdetector.com) that reports outages.  Some thought the whole internet was down, but it wasn’t.  An Amazon Web Services outage had made thousands of websites inaccessible, bringing to light how much of the internet is powered by Amazon. In 2017, AWS accounted for 49.4% of the total IaaS market share. The next three top IaaS service providers -- Microsoft, Alibaba & Google made up for 21.3 % of the market, less than half of the market share of AWS. One of the reasons why Amazon...

How Grammarly Makes Money [Business Model 2020]

11 years since being founded in 2009, Grammarly has more than 20 Million daily active users, over 10 Million downloads of its chrome extension and 2000+ institution and enterprise clients. And all this for a company which did not raise its first round of funding worth $110 Million until its eighth year of operation. Now, we’re not by any means trying to imply that Grammarly was bootstrapped for the initial 8 years of the startup’s journey -- the founders did make some money (nobody knows how much) from selling their first startup (more on that later), which was used to self-fund the company in...

SaaS Business Model [ Explained Simply ]

According to the Gartner report, the worldwide public cloud service is expected to make an astronomical $266.4 billion in 2020, with SaaS-based businesses forecasted to make $116 billion, accounting for 43.54% of the cloud market. Broadly speaking, cloud-based services can be divided into three categories: Software as a Service (SaaS), Platform as a Service (PaaS) & and Infrastructure as a Service (IaaS). But today, we will specifically be talking about SaaS businesses -- covering how they work, the metrics used to evaluate them and have a brief look at some notable SaaS companies And by the way, if you're unaware, the cloud is just...

How Fortnite Makes Money Despite Being Free to Play

In the year 2018, Fortnite made a whopping $2.4 Billion in revenue -- the most annual revenue for any game in the history of the gaming industry, a record which is yet to be broken. Despite that, Fortnite accounted only for 2.2% of the gaming industry's 2018 annual global revenue, which stood at $109 Billion. Many among us might not realize this, but the gaming industry has grown to become the largest subset of the entertainment industry.  Even bigger than the movie & music industry, both of which combined made $60.8 Billion globally in 2018. Around 80% of the total gaming industry revenue in 2018 and 2019 was attributed...

How YouTube makes Money?[ Revenue Model 2020 ]

In November 2006, almost two years after its founding in February 2005, Google acquired YouTube for a then-hefty price of $1.65 billion.  In Feb 2020, Google reported that YouTube generated $15 billion from advertisements alone in 2019 ( Youtube has various other income streams, which we will discuss below ), contributing 10% to Google’s total 2019 revenue.  Youtube has, undoubtedly, been one of the most remarkable acquisitions in the history of tech. It is the second most popular website in the world after Google. Source: Similar Web  But when it comes to engagement metrics like avg visit duration, pages per visit & bounce rate,...

Why Zoom Is Successful & How it Makes Money

When Eric Yuan, Zoom’s CEO, decided to go after the video conferencing market in 2011, the market was already flooded with incumbents like Microsoft owned Skype, Google Hangouts & the then market leader Webex, owned by Cisco. Eric was serving as the VP of Engineering at Webex when he decided to venture out on his own.  So why did he quit Webex & how did Zoom turn into such a big phenomenon? There’s no denying the fact that the coronavirus propelled Zoom’s growth in a way nobody could have predicted, not even Eric himself, but Zoom was a successful product even before this whole...

The Real History of Twitter & its Business Model

Twitter rose from the ashes of a failed startup called Odeo to go on to become the #1 platform for discovery and become widely recognized as the SMS of the Internet with 300 million monthly active users as of 2019. However, Twitter has had quite a controversial start with the real history of Twitter having a fourth co-founder who was fired and not given the credit he deserves, as per the story revealed by Business Insider. Let’s probe into Twitter’s true founding history first and then examine how it makes money. Twitter’s Founding Story Before Twitter was born, Evan Williams, one of its founders was flush with money...

How Kickstarter Started & How It Makes Money

With its mission to help bring creative projects to life, Kickstarter helps finance creativity and innovation not just for art world elites but also for people that do not have a creative background, facilitating projects in various categories such as Art, Design, Journalism, Photography, and Theater. Every Kickstarter project has a clear goal such as making an album or a book and the project creator keeps 100% ownership of their work. Since its launch in 2009, 18 million people have pledged over $4.9 billion to fund more than 180,000 Kickstarter projects. But how exactly does Kickstarter work and make money?  Let's find out, but...

How TikTok Rose To Worldwide Popularity & How It Makes Money

In just three years after its launch in 2017, TikTok has taken the social media world by storm. With around 1.9 billion lifetime app downloads and about 800 million monthly active users worldwide, TikTok has become the 7th most downloaded mobile app of the decade, from 2010 to 2019. TikTok’s growth was so rapid that incumbent social media company Facebook even launched its own short-video app Lasso in the US in November 2018. However, Lasso was only downloaded by 70,000 US users within four months of its launch in comparison to about 40 million users for TikTok in the same amount of time.  So how did...