Does Notion have a freemium business plan? How exactly does it work? Is it profitable? These questions are all addressed in this detailed blog article.
We’ll go through some of the key takeaways and then dive into the details of how their product, subscription, and partnership contributions contribute to the revenue streams.
A notion is a free tool for building wiki pages, sharing files, taking notes, managing workflow, and organizing projects. It has premium features available at no cost. The company makes most of its revenue by selling enterprise services.
The notion is built on the premise of a freemium model. This means they provide most of the basic features for free but require payment for additional features. In order to access all the premium features, users must purchase one of the three tiers, starting at $9/month for Personal Pro, $19/month for Team, and $29/month for Enterprise.
Pricing Model: Here is the pricing structure for Notion.
- Personal: $0 (free)
- Personal Pro: $40 per year ($4 per month when paid annually).
- Team: $8/mo per person when paid annually
- Enterprise: Request quote
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Notion Labs Inc. (NLTK), the Notion online workspace manager, is a privately held business that doesn’t disclose its financials, but one article from Medium says the business was profitable in January 2020. It’s probably still true today.
Craft has been operating for five years and has received $67 million in venture capital. The most recent investment valued the startup at $2 billion. Index Venture Capital is one of its investors.
How Does Notion Make Money?
Pricing for paid plans starts at 5$ per month (discounts up to 48$ per annum), 10$ per month (discontinued to 96$ per annum), and further discounts are quoted for larger group sizes under the Enterprise plans.
The Notion platform offers a free version with a basic limited account, which is available for individuals. The personal pro plan is free for educational institutions.
The Notion platform faces intense competitive pressures from other workflow management platforms and more comprehensive office suite applications. In the education market, Notion competes with the software apps offered by EverNote and Microsoft Office 365.
This table compares the company valuations of Notion Labs with some of its competitors.
Notion Referral Program
Users can earn credits for their Notion accounts by referring others to the Notion platform. If the referred person signs up for a free trial, which results in them signing up for a paid account, they get the credit.
Through this referral program, some Notion users can use the paid service for free.
History of Notion
The cofounding team consists of three members, including the two founding members.
Figma reported it had run out of cash in 2015. The beta release wasn’t working properly. They were building on an old technology stack that would never succeed.
After struggling for years they decided to start again from scratch.
The founders had to lay off most of their staff and sublease their offices in expensive San Francisco. So they moved to the cheaper city of Kyoto, Japan instead.
During the first six months of working together, the two co-founding engineers spent between 12 and 18 hours every day writing code. After six months, they switched roles so that one engineer would focus on design and the other would take care of the programming.
It launched its first browser-based version in 2016. Its first mobile app came out in 2017. A new version was announced in early 2018.
As a result, the app quickly became popular among consumers. At its peak, the app had fewer than ten employees.
The Notion app was created by an experienced team who wanted to create something better than anything else out there at the time. It offers a minimalist interface, but behind every icon is incredible functionality.
With no coding required, users can create a Notion page to accomplish tasks they need to complete.
In June 2018, Notion became available for Android. By September 2019, it had gained 1 million users. TechCrunch said that the number of employees was just 18 at that time. The Medium article said the employee number was only 18 at that moment.
If you’re an entrepreneur, Business Insider says that the cofounding team rejected the approach of venture capital firms in February 2019, meaning they had been turned down by investors at least once before they launched their app.
By April 2020, its users had grown to about 4 million. Based on a fundraising round of $50 million led by Index Ventures, the startup’s valuation reached 2 billion dollars.
Before April 2020, the capital raised by the firm was only $20 million; Craft said it was only $17million. The value of $ 2 billion was astounding because the firm had supposedly only recently reached a yearly revenue base of $ 30 million. The firm has now upgraded its workforce to just 40 employees.
The rapid rise from one to four million active users within one year caught the attention of investors who valued the company at $4 billion. In 2020, as more people were forced to work and collaborate with each other from their own houses, the number of active users increased significantly.
Investors tend to be looking for best-in-breed and generation-defining startups during uncertain economic times like Notion was at the time.
Profitability and Loyal User Base
Notion acquired its loyal user group, which they call “Notions,” by using clever marketing tactics and engaging their customers. They’re most famous for promoting themselves among their own customers.
The company hired an internal graphic designer, Roman Muradov. He created a comic book style for the logo.
The illustration is clear and gives the user a sense of light-heartedness. It matches the clean user interface style perfectly.
Even though Notion was not mentioned specifically, the artist took a jab at the competitor by depicting the user character sliding off an elephant’s back to try out Notion.
This clean design extends to the “How It Works” page, which answers users’ questions with minimal text.
One clever idea was using the Notion web app to build the Notion website. When visitors go to the Notion website they instantly get to experience how the tool helps people create new ideas, projects, and workflow.
Designing Notion is done through multiple iterations of any deliverable until we’ve found the best option.
At Notion, we don’t just write for words; we also design for images. Our designers create multiple versions of our content by creating rough drafts, allowing ideas to flow freely, and then providing feedback to help us narrow down which idea is the best.
Building the Knowledge Base
All revisions are stored indefinitely. New versions are archived for searching purposes.
This method allows everyone who joins later to view the entire project timeline. It is easy to navigate any previous project and visit old ideas.
By launching the Notion Community site in July 2019, the company showed many different ways for people to become involved, including:
- Get the community newsletter.
- Join a Notion group.
- Connect with them on social media.
- Add your own templates to the template gallery.
- Attend events and webinars.
- Have an event or webinar
- Translate Notion.
- Share Notion goodies with others.
- Build a Notion business.
- Use Notion for creating images.
- Become a product ambassador.
The notion has an open communication channel for its community members on social media platforms like Facebook, Discord, Reddit, and Slack.
Features of Notion
The desktop version of Notion works on both macOS and Windows computers. The mobile version works for both iOS and Android devices.
There is also an add-on called Web Clipper which lets you copy any web page into the Notion system. It’s free!
The notion works with blocks. Blocks allow users to create custom Notion layouts for their teams.
The notion has specific features designed to help people get things done, including:
- Products: Create a visualized roadmap for a new project, write down specifications, and get the help of a development team’s collaborative efforts.
- Engineering: Documents processes and project management.
- Human Resources: Help onboard new employees.
- Publishing design guidelines, catalogs, and tracking assets.
- Sales: Organize meetings, create a CRM system, and use a sales playbook.
- Content marketing: Create a content strategy and create content for your brand.
- A company wiki allows companies to create a central place for employees to store company information.
Notion supports Kanban boards, tables (for use with Trello), lists (for use with Evernote), and custom (customizable) views. It has an intuitive interface and allows you to create, edit, share, and collaborate on documents.
You can use Notion’s API to create links within Notion files so that they open up into any app or web page directly from within Notion. This makes it easy to search through a collection of documents for specific content.
A notion is a tool for creating websites, documents, presentations, spreadsheets, and drawings. It integrates with Google Cloud services, such as Google Drive, Google Sheetz, Google Docs, Google Maps, and others.
Notion Expands to South Korean Market
By 2020, Notion launched a Korean-speaking version. Now, South Korea has the second largest user base for Notion and is one of the fastest-growing markets for the company.
Conclusion: How Does Notion Make Money?
Notion’s business model is a freemium one. Individuals get access to the basic features for free, but companies pay to unlock additional features.
The core value that Noun Project has built into its application is the ability to create ideas in real-time without installing any additional programs. It allows you to create a knowledge base for your company, plan projects using a visual workflow editor, manage tasks in a Kanban Board, and much more.
It has a lot of features similar to ones found in software like Trello. However, the notion has been a big success due to its ease of use and high-end features.
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