Grammarly needs absolutely no introduction. It’s been correcting millions of people since a decade whenever they are writing or trying to communicate in English. So Lets see what is Grammarly Business Model and How does Grammarly Make Money.
It is simply a multi-purpose tool for checking plagiarism, spelling mistakes, grammatical errors and whatnot that adds value to the content.
Today, there is no single writer or online business that is unaware of this incredible grammar tool that runs based on AI. In fact, there is no limitation for using Grammarly. It is actually designed to help people from any niche, be it lawyers, doctors, developers, marketers, writers, universities, students etc to write and communicate seamlessly (without any error, literally).
Wondering when and how did this amazing grammar tool start? Well, you will learn brief history, how the tool works and Grammarly’s business model in detail in this article. So, stick on…
Want to know how Google makes money? Read Google’s business model here.
Page Contents
What is Grammarly and How did it Start?
Grammarly is a clear writing solution that recommends corrections when writing to make it simple, clear and perfect. It uses technology (artificial intelligence) to help humans convey their thoughts online without any errors. This SAAS tool is available as a freemium tool for people around the world.
In the past, it required people to visit their site and check for concerns. Today, the tool brings their service to wherever people want to ease their work. Simply put, Grammarly is available as browser extensions, add-ins and apps from the year, 2013 making people’s lives easier when writing. Yes, it feels heavy when you are stuck writing. But now, Grammarly comes wherever you are writing (be it your Word document or Whatsapp text) to polish it.
Though it initially started as a Grammar checker, it is now a one-place for any kind of writing assistance. Right from spelling mistakes, grammar error to alternate word and word prediction, it owns its user’s writings.
Grammarly’s Short Story
Three Ukrainians, Alex Shevchenko, Max Lytvyn and Dmytro Lider developed Grammarly in 2009. However, this was not their first creation to help people write and communicate in English perfectly. In 2002, Shevchenko and Lytvn designed plagiarism checker, MyDropBox to help universities to detect plagiarism and students make their writing unique. Later, they sold it to Blackboard Inc. with some terms.
After the terms period is over, the founders again started working on a new grammar and plagiarism checker, Grammarly and launched it in 2009 finally. Interesting, right? In fact, they learned a lot from their first design, MyDropBox and, and that is why Grammarly is successful today with more than 20 million daily active users. It even raised $110 million funding in 2017 just within 8 years of its launch. They made Grammarly for people from any domain unlike MyDropBox which is exclusively for universities and students.
You will be surprised to know that there are just 408 employees working for Grammarly as per Growjo.
Back in the past, before it was shaped as a grammar checker tool, Grammarly served web users with tips, and guides to write effectively to make an impact. So that people get familiar with it and hence it becomes easy to turn them into customers. In fact, this is why Grammarly stands out from the rest, it never stopped helping people to draft effective content.
How does Grammarly Make Money
How does Grammarly Work?
So, let’s see how does Grammarly make money, how Grammarly works and more about its business model without any ado.
As said, Grammarly has more than 20 million active users, 2000 institutions and enterprise clients who rely on them. Popular businesses such as Zoho, Segment, Magneto, The Economist use Grammarly’s plans. There is no nearer competitor to the software tool even today.
Grammarly’s business model is quite simple to understand. It purely works on a subscription-based business model. In fact, this is how Grammarly Make Money and it chooses no other way. However, with a number of quality products, premium features, it is well enough for the tool to make money. Let’s see the products and features of Grammarly to better understand its business model. There are both free and paid plans, however, do not think the free plan doesn’t bring any value. That is their marketing catalyst, we’ll look into that as well.
Grammarly Free Extension
Grammarly introduced the freemium model in 2015 offering free browser extensions to check grammar, spelling, punctuation and conciseness. The extension is available for Google Chrome, Microsoft Edge, Mozilla Firefox and Apple Safari. It checks for errors and recommends corrections whatever you do online. Whether you write a caption for your Facebook post or use Google docs, it helps you attract readers.
Grammarly Premium
The premium plan checks beyond grammar. It offers extra advanced suggestions, analyzes readability, detects plagiarism etc in the Premium plan. This is generally for work and schools.
- Premium plan costs $11.66/month if billed annually.
- $29.95/month – Monthly plan
- $19.98/month – Quarterly Plan
Grammarly Business
This plan is exclusively for businesses with a minimum of 3 team members. The whole team can write error-free and drive a positive impression for your business.
Grammarly focuses on correctness, clarity, engagement and appropriate tone to help businesses sound more professional and hence more successful.
- Business plan costs $12.50/month/member if billed annually.
Grammarly @edu
Over 1000 education institutions including Illinois, University of Phoenix etc trust and use Grammarly. Grammarly provides writing assistance for all levels for students and is helping them improve their grades. Colleges can join the plan and enjoy SAML Single Sign-On. The cost is revealed once after the details are filled.
Grammarly Desktop Apps
Grammarly is available as a desktop app for free. Users can simply drag the document into the app and check for the errors.
You can even get Grammarly for Microsoft Word and Outlook to draft error-free content offline.
The Grammarly Keyboard
Correct your draft on your phone while texting on any platform with Grammarly keyboard app. It checks for grammar, spelling, punctuation errors for free.
So, apart from these products, Grammarly offers a few outstanding features to help people speak, write and communicate confidently and error-free for free.
- Product Feature News: It helps users at all levels with effective article and writing guides.
- Tone Detector: It feels nice if someone says your writing is confident, right? Exactly this is what Grammarly’s Tone Detector does. It lets you know if your writing is formal, friendly, optimistic, confident, or uncertain.
- Grammar Checker: You can check if your content is error-free straight opening the Grammar Check on a new tab.
- Plagiarism Checker: Helps you check any plagiarism or error in your writing.
So, wondering why we even discussed each detail about Grammarly. So How does Grammarly Make Money. Well, this is how the brainy tool works and makes money. Confused? Okay, let’s quickly jump into its business model.
Grammarly Business Model
So, as you see there are both free and paid products that Grammarly offers. So How does Grammarly Make Money, It is clear that Grammarly makes money from only paid products or subscriptions. It even states that it doesn’t sell any data for money in their Privacy Policy.
However, surprisingly, it does not see any losses offering free services. Okay, that doesn’t mean it is less expensive or easy to handle browser extensions or free apps. In fact, their team monitors and works most time on the extensions that don’t generate direct revenue. This simply says how strong their business strategy is.
To put it simple, Grammarly uses all its free apps and extensions as fuel for marketing. It motivates people to use their free extensions and apps for free and becomes part of their writing or online journey with its limited features. Then, it nudges users to upgrade for the premium version to access advanced features and improve their writing quality. Who doesn’t want to sound professional in their communications? Especially, when more of the world exists only online, right? In fact, after Grammarly introduced extensions, its user base doubled. However, Grammarly doesn’t reveal its numbers.
It is Little Different!
Although, this is not its exact strategy to grow as the only reliable grammar check tool. Grammarly Make Money Unlike any other service or business, Grammarly sold its services to businesses and institutions in earlier days to make money to improve their service. So, it started as a premium plan first, then it introduced free plans and continuing to offer both successfully even today.
Bottom Line
Over 1/4th of the world’s population speak English and over 80% of data across the Internet is stored and processed in English. Not to mention, the majority of publications are written in English.
Now, Grammarly is contributing its best to make the data in English error-free. The advanced features, the free services and world-class premium services it offers are a huge plus for the tool. Writers, bloggers, students, entrepreneurs, businesses, lawyers, marketers (the list goes on) all over the world use Grammarly to impress clients or act professionally. Of course, it is needed to convey the content to people in the right way. Punctuation or grammar errors may sometimes mislead the readers. In such cases, Grammarly is doing a great job offering free products.
Read: How popular crowdfunding platform for creators, Patreon makes money.
Moreover, the number of individuals or businesses using the premium plans is no less. Grammarly is making good profits out of its business model. Also, it is completely okay to tell that the business model is sustainable even in the long run. Unless it fails providing quality service or updating with the latest trends, it won’t lose its position. In fact, there is a huge room for other businesses to learn from Grammarly’s business model.
Hope this article helped you learn a lot about Grammarly business model and how does Grammarly make money.
