The purpose of this blog is to answer the question that is, “How does Grammarly make money?”, Areas of focus include the history of Grammarly, its early days, what makes Grammarly unique in its work, and most importantly the in-depth process of how Grammarly generates money.

how does Grammarly make money

Grammarly makes money by selling services of proofreading to users, corporates, and colleges signed up for Premium subscriptions. Users are encouraged to switch to paid subscriptions to get more value. Grammarly sells its premium services to three distinct user segments such as users, businesses, and educational institutions.

What is Grammarly

Initially, Grammarly was a grammar checker, however, Today, it is an all-in-one writing platform with multiple tools and techniques to enhance writing any kind of documentation. The purpose is to make it more precise, Error-free, free of plagiarism, and improved communication.

This software as a service instrument is used by its users across the globe. It now functions as a web browser (Applies to Chrome, Safari, Firefox, and Edge), a desktop application (for MAC as well as Windows), a mobile application for iOS and Android, and a Microsoft Word add-on.

Grammarly is designed to be limit-free therefore it has the ability to proofread any type of content. People from any type of fields such as Marketers, sales professionals, engineers, support specialists, entrepreneurs all together can make use of its services due to its customization features.

Grammarly uses artificial intelligence to articulate and convey human thoughts better in a more grammatically corrected way. It functions on Machine learning and Rule-based Natural Language processing algorithms

Recently, Grammarly progressed due to its integration, however, in the past, it required people to log in on the website to check their grammatical and non-grammatical mistakes. Now Grammarly is used as a browser extension.

How Grammarly give value to users?

·       The free browser extension of Grammarly detects errors in writing and corrects as well as provides alternatives on all websites that users use.

·       It is a seamless and easy-to-use application. Users can easily copy and paste content and get instant suggestions of grammar, sentence structure, wordiness, punctuation, spellings, and the program will notify you if the text contains plagiarism.

·       Grammarly helps users make informed decisions by not only correcting mistakes but also providing an explanation for a certain correction.

How did Grammarly come about?

Grammarly was developed by three individuals with the nationality of Ukraine. They were named Alex Shevchenko, Max Lytvyn, and Dmytro Lider in 2009. However, they tried developing an app similar to Grammarly before. In 2002, Shevchenko and Lytvn created MyDropBox that helped educational institutions check for plagiarism. This was later sold to Blackboard incorporation for a private amount. 

The founder started working on developing a new Software as a service tool (SAAS), hence in 2009, Grammarly was launched by the three Ukrainians. Their mission was simple yet innovative as stated by the founder; “We wanted to improve lives by improving communication.”

Initially, Grammarly focused on helping university students improve and be confident in their language skills however sales were stalling as universities were in a dilemma of whether to continue buying this SAAS tool for years on subscription, Due to this, Grammarly decided to focus on the Consumer Market instead. Grammarly has a user base of more than 100,000 pupils within one year after its introduction.

Grammarly quickly became a cash-flow indicating Great success. Primarily the software focused on grammatical error correction (GEC) to help with the fundamentals of the English language. Today Grammarly is running successfully with 30 million daily active users.

According to LinkedIn, Grammarly has over 750 Employees as of December 2021. Mostly distributed in the United States and Ukraine. Popular businesses use Grammarly such as Zoho, Segment, Magneto and The Economist.

Over the coming years, Grammarly added multiple features with a consistent purpose of making writing easier and grammatically correct. Furthermore, the company can now employ more than 400 employees across offices around the globe.

Grammarly culture, mission, vision, and core values:

The mission of Grammarly is to build a complete communication assistant for users all around the globe. From their mission as well as vision Grammarly, they articulated their core values:

·       E: Ethical

·       A: Adaptable

·       G: Gritty

·       E: Empathetic

·       R: Remarkable

Grammarly Business model

Grammarly made its first moves toward decreasing user barrier by increasing product acquisition in 2014. “Rather of bringing users to Grammarly, we want to bring Grammarly to everywhere people write,” stated by the co-founder of Grammarly, Known as Max Lytvy, at the time.

Building a digital writing assistant for everyone

To build a communication system where users can access Grammarly anywhere they want, they released add-ins for Microsoft office on windows and Mac. They purposely launched desktop apps so that users could work without the access to distracting tabs. Grammarly was aware of the current globalized world, As a result, Grammarly Keyboard for iPhone and Android smartphones was released, as well as an integrated editor-keyboard experience for iPad users.

How does Grammarly work?

Grammarly focuses on repairing sentence structures based on a variety of components such as grammar accuracy, sentence clarity, content engagement, and delivery while listening to users about what they are required to achieve their goals, including rich text formatting in the Grammarly Editor. Users of the SaaS program can implement input on a variety of themes, including politeness, consistency, and readability.

Grammarly’s Present Business Model

Grammarly makes money by selling premium services to users, apart from that, Grammarly also provides proofreading services which generate a lot of revenue. The freemium subscriptions are provided to the following segments that is;

Grammarly For Individuals:

The free version of Grammarly provides correction for critical grammar mistakes, conciseness, and spelling mistakes. The premium membership, on the other hand, includes features such as readability assessments, vocabulary development suggestions, genre-specific writing style exams, and a plagiarism detector that scans more than 16 billion web sources for duplicate content and plagiarism. It helps you attract readers whether you’re writing a caption for a Facebook post or using Google Docs to construct a document.

Grammarly Premium

The premium plan checks beyond grammar. It offers extra advanced suggestions, analyzes readability, detects plagiarism. This is works best for school and professional work.

Grammarly sells the premium plan for

·       $11.66 per month (when billed annually)

·       $19.98 per month (when billed quarterly)

·       $29.95 per month (when billed monthly)

Grammarly For Businesses

This provides a customized solution to a business’s need to maintain a consistent tone and brand voice in all mediums of communication. Therefore, it allows customization on style guide.

For businesses having a team size of up to 149 members, the business plan comes at:

·       $12.50/member/month (billed as one annual payment)

·       $25/member/month (billed as monthly payments)

Grammarly For Education

This targets educational institutions and gives access of its services to preset users from a specific school, college, or university. Currently, more than +1000 educational institutions are using the services of Grammarly.

·       $500/5 Users (Billed Yearly)

·       $800/10 Users (Billed Yearly)

·       $1200/20 Users (Billed Yearly)

Human Proofreading Service

Grammarly also offers proofreading services to consumers. The pricing of the service is determined by the quantity of words and the estimated turnaround time. Grammarly might earn $7.8 million a year, according to Owler. Its viral growth is fostered by a series of free tools.

Grammarly for Mac

Grammarly’s Mac software makes it easy for Apple users to use its editor. The mobile app simpler for mobile users to use its editor. The SaaS application provides plenty of standout features that allow people to speak, write, and communicate effectively and error-free.

·       Product Feature News: It provides excellent article and writing instructions to users of all levels.

·       Tone Detector: Doesn’t it feel good when someone says your writing oozes confidence? This is exactly what Grammarly’s Tone Detector does. It indicates whether user’s writing is official, friendly, hopeful, confident, or unsure.

·       Grammar Checker: Users can also check if their material is error-free by opening a new tab and clicking the Grammar Check button.

·       Plagiarism Checker: It assists users inn detecting plagiarism or errors in your writing.

Grammarly for Microsoft

Grammarly’s app for Microsoft makes it effortless for PC users to use its editor.

Grammarly chrome extension

Grammarly’s Chrome extension was also responsible for the company’s rapid growth of free users. Grammarly was able to reach immense profitability and increased cash-flow for the company, all thanks to a flawless UX and a set of prompts.

Simply put, Grammarly uses all its free services as a fuel to market its services. It encourages users to integrate their free browser extensions in the hope of then converting them into paid users signing up for the premium services mentioned above.

 This blog post addressed the topic, “How does Grammarly make money?” We discovered that Grammarly makes money by offering paid services to users. First it uses its free services for marketing to attain more users specially in their premium services. The blog detailed the features Grammarly that distinguish it from others, as well as how the company produces revenue. Please feel free to comment on the content or ask any questions in the comments section below.

Frequently Asked Questions (FAQs):  How does Grammarly make money?

How does Grammarly Business work?

Grammarly Business contains the following features:

·       Corrections for difficult spelling, grammatical, and punctuation mistakes.

·       Advanced writing tips for making user’s writing more clear, interesting, and inclusive.

·       Style guide with update.

·       Simple integration with existing workflows

·       Single sign-on with SAML is supported.

·       Snippets

·       Brand tones

·       Individual accounts for three or more team members

·       Billing and administration dashboards are now centralized.

·       Priority email support

·       SSL/TLS encryption and 256-bit AES encryption

·       GDPR, CCPA, and HIPAA compliance

How does Grammarly work?

Grammarly uses context to correct the user’s sentences. It utilizes an AI-enabled algorithm to improve the coherence, fluency, and vocabulary of the user’s writing. Grammarly is accessible for free in a variety of formats, such as a Chrome extension and a desktop app, among others.

Is Grammarly 100%, correct?

Grammarly is far from being a replacement of a human eye, Therefore Grammarly may correct all the grammatical and sentence structure mistakes, but it does not provide 100% correction. A 2017 Grammarly review by Grammatist claims that it merely found thirty mistakes out of forty-three (that’s about 72% accuracy).

Does Grammarly sell your data?

Grammarly does not sell or rent your personal information.

Is Grammarly safe privacy?

Grammarly uses industry-standard encryption to protect all user data while it is in transit and at rest on its servers. all their information is secure and safeguarded.

Can Grammarly see my passwords?

Grammarly’s software is unable to access content in “sensitive” fields. Desktop and mobile keyboards do not see any written content typed  or any kind of content containing sensitive information.

References

Qadri, M. (2020, July 28). How Grammarly Makes Money [Business Model 2020]. Retrieved from What is the Business Model of : https://whatisthebusinessmodelof.com/business-models/grammarly-business-model/

Zeen, A. (2020, October 19). zeen. Retrieved from How Does Grammarly Make Money? Grammarly Business Model: https://zeen.com/grammarly-business-model-how-does-grammarly-make-money/