UGH.
The frustration was real.
In 2006, Avishai Abrahami realized that building a website was far too complicated for the average person.
“The hardest part in building a website is that it takes a lot of effort to do the first version, and everyone has a different story and different way to talk about it.”
Avishai Abrahami, CEO of Wix
That frustration sparked an idea: what if anyone could build a stunning website—no coding required? That’s how Wix was born.
What is Wix’s Valuation?
Wix’s valuation is $11.8B as of 2024.
What is Wix’s Revenue?
Wix revenue reached $1.7B in 2024.
| Year | Revenue |
|---|---|
| 2006 | Launched |
| 2021 | $1.27B |
| 2022 | $1.38B |
| 2023 | $1.56B |
| 2024 | $1.7B |
Who is the CEO of Wix?
The CEO of Wix is Avishai Abrahami. He founded Wix with Nadav Abrahami and Giora Kaplan.
Who Are Wix’s Competitors?
Wix’s main competitors are WordPress, Shopify, GoDaddy, and Squarespace.
1. Finding Your Own Niche
The founders realized they needed a fresh idea if they wanted to stand out.
That idea came from their own frustration. Building websites at the time required either technical skills or expensive developers.
Tools like Dreamweaver and FrontPage were clunky and catered to professionals, leaving everyday computer users behind.
Switching to website creation wasn’t easy. Platforms like Google Sites and Freewebs were already offering simple templates, but the results often felt uninspired.
Wix’s founders knew they could do better by making design the priority and giving users total control.
Creating Websites Without Code
The breakthrough was a drag-and-drop editor that let people create stunning websites without needing to code.
“We empower users to create beautiful websites without coding.”
Avishai Abrahami.
This vision became the driving force behind the product.
Wix didn’t just want to offer functionality—it wanted to give people a way to tell their story.
Small business owners, freelancers, and creators all found the tools they needed to bring their ideas to life.
The focus on accessibility and design made it an instant hit.
Fast-forward to today, and Wix has over 240 million users worldwide. Its focus on ease of use and aesthetics has helped it dominate the market. This foundation has also driven its growth to $1.7 billion in annual revenue.
Wix’s journey shows the importance of listening to what users need. The company didn’t just build another tool; it created something that helped people share their vision. That personal connection made all the difference.
2. Testing 11 Ideas to Find the Winner
In the early days of Wix, the team experimented with 11 different concepts, ranging from Myspace customization tools to e-cards.
Each idea was tested in the market, but none of them gained significant traction.
One of the team’s most creative ventures was an online gaming platform, but user interest quickly slowed down.
Other ideas were functional but didn’t address a widespread problem.
These ideas, even though they were unsuccessful, taught the founders a valuable lesson. The key to growth would be solving a problem that resonated deeply with users.
Simplifying Website Creation
The breakthrough came when Avishai Abrahami and his team noticed a recurring issue.
Many people wanted to build websites but were overwhelmed by the complexity of existing tools like Dreamweaver.
“Users showed us the path to success—beautiful, user-friendly websites.”
Avishai Abrahami, (Foundr interview).
This insight led the team to pivot entirely to website creation.
At the time, other platforms like Google Sites and Freewebs existed, but their templates were limited and often uninspiring. Wix decided to take a bold approach: focusing on stunning, customizable designs and making the process as intuitive as possible.
The founders believed that allowing users to bring their personal stories to life would set them apart.
Building the platform wasn’t easy. The team faced technical hurdles and skeptics who doubted the viability of a drag-and-drop editor.
Despite these challenges, the founders remained committed to creating a tool that anyone with basic computer skills could use. Their emphasis on user experience and design flexibility proved to be a winning formula.
Within three years of launching the website builder, Wix revenue hit $1 million. This milestone validated the team’s decision to focus on website creation. As Abrahami put it:
“If we give people the ability to generate their vision and make it as beautiful as they want, then we have a winner” (Foundr interview).
By identifying a problem that mattered and delivering a creative solution, they set the stage for what would become a $1.7 billion company.
3. The Freemium Model: Wix Converted 10% of Users
The most successful companies I investigate have freemium models.
This strategy allowed users to access essential website-building tools for free while offering premium upgrades.
The free plan gave users a low-risk way to try the platform. For advanced features, such as custom domains or extra storage, Wix provided affordable premium options.
This model wasn’t just about driving revenue. As CEO Avishai Abrahami explained:
“Freemium isn’t just about free users—it’s about trust and long-term value” (Foundr interview).
This strategy is similar to Slack’s approach, which used its freemium model to scale to $3 billion in revenue in just three years.
Converting 240 Million Free Users to Paying Customers
Over 10% of Wix’s free users eventually upgraded to premium plans. This conversion rate was well above the industry average for freemium models.
Plans like the $14/month “Combo” plan became extremely popular. These clear pricing tiers gave users easy ways to grow with the platform.
Many competitors required upfront payments or limited free trials. Wix’s freemium approach gave it a significant advantage by building loyalty early.
This strategy especially appealed to small businesses and hobbyists. They could explore the platform at no cost before committing.
4. How Does Wix Generate $1.7B in Revenue? (4 Streams)
Wix’s revenue comes from a diverse mix of monetization strategies. These include subscription plans, domains and hosting services, e-commerce tools, and an app marketplace.
1. Subscription Plans: The Core Revenue Driver
The majority of Wix’s revenue comes from its premium subscription plans. These plans offer enhanced features like custom domains, ad-free experiences, and advanced analytics.
The $14/month “Combo” plan remains the most popular, catering to small businesses and individuals. These accessible tiers allow users to upgrade as their needs evolve.
2. Domains and Hosting Services
Wix also generates significant revenue from selling custom domains and hosting packages. In 2024, the company registered over 1.5 million domains, demonstrating strong demand for these services.
Businesses benefit from having everything in one place, which increases user retention. The seamless integration between domain services and website creation is a key differentiator.
3. E-commerce and Payment Processing
E-commerce has become a major revenue stream for Wix, especially as more users sell products online. The platform charges transaction fees for payment processing, which contributes substantially to its earnings.
In 2023, Wix’s e-commerce revenue grew by 45%, highlighting its effectiveness in attracting and supporting online sellers. Features like inventory management and marketing tools have made it a go-to for entrepreneurs.
4. Wix App Market and Integrations
The Wix App Market allows users to add functionality to their websites through third-party apps. This marketplace generates revenue through partnerships with app developers and direct sales.
With integrations for CRM, email marketing, and social media, Wix offers a comprehensive ecosystem. These tools not only enhance user experience but also drive recurring revenue.
In 2024, these revenue efforts paid off, with Wix revenue hit $1.7B and solidified its place as a leader in the website-building industry.
5. 70% of Wix Users Choose It for Design Flexibility
Wix’s early success was fueled by its focus on design.
The founders recognized that most users wanted websites that didn’t just function but also looked stunning. This emphasis on aesthetics became a key differentiator in a market crowded with competitors.
Wix invested heavily in creating hundreds of customizable templates. These templates gave users the ability to build unique websites that reflected their personal or business identities.
“People care deeply about how their websites look, and we built for that.”
Avishai Abrahami (Foundr interview).
Design That Inspires and Empowers Users
Unlike many competitors, Wix offered unmatched design flexibility. Its drag-and-drop editor allowed users to make precise adjustments without needing coding skills. This feature resonated strongly with users seeking creative control over their websites.
A survey conducted by Wix revealed that 70% of its users chose the platform for its design flexibility.
This insight drove Wix to consistently innovate its tools and templates, ensuring users could bring their vision to life.
Wix’s focus on aesthetics wasn’t just about appearance—it was about empowering users to tell their stories. This strategy helped the company grow into a $1.7 billion revenue leader and set it apart from other platforms offering cookie-cutter solutions.
6. How Feedback Helped Wix Gain 500,000 Users in Its First Year
In its early days, Wix relied heavily on user feedback to shape its product.
The team actively sought input from early adopters, using their suggestions to improve features and usability.
To reach its first 1,000 users, Wix promoted itself through niche blogs and SEO tactics.
These users were often tech-savvy individuals or small business owners looking for a better way to build websites. Their feedback provided valuable insights that guided Wix’s development.
Building Trust Through Direct Engagement
The team personally reached out to users to understand their pain points. This approach helped Wix prioritize features that solved real problems. By listening to its audience, the company created a product that resonated with users.
Within the first year, Wix gained over 500,000 registered users, a testament to its user-focused strategy.
“Our users were our biggest growth engine in the early days.”
Avishai Abrahami (Foundr interview).
This feedback loop helped Wix refine its tools and build trust with its growing community.
Wix’s ability to adapt based on user input played a significant role in its early success. By focusing on customer needs and delivering a polished product, the company set the stage for its growth to $1.7 billion in revenue.
7. Wix Powers Over 4.5 Million SMB Websites by Solving Their Unique Needs
Wix’s growth is closely tied to its focus on small and medium-sized businesses (SMBs). The company identified SMBs as a key market early on, creating tailored features to meet their specific needs.
This approach unlocked a massive opportunity, driving both user acquisition and revenue growth.
Many SMBs needed simple tools for e-commerce, bookings, and marketing. Wix introduced features like appointment scheduling, online payment integration, and SEO tools to support these needs.
By solving real problems for SMBs, Wix became their go-to platform for building and managing websites.
Focusing on High-Value Customers
Wix didn’t just aim to attract any users; it strategically targeted SMBs that would benefit most from premium tools. This focus helped Wix grow a loyal customer base that was willing to invest in its services.
By 2024, Wix powered over 4.5 million SMB websites worldwide, making it a leading platform in this space.
“Understanding SMB needs was key to scaling Wix to $1.7 billion in revenue.”
Avishai Abrahami (Foundr interview).
The company’s dedication to serving this market helped it outpace competitors.
The tailored approach for SMBs allowed Wix to capture a significant share of the website-building market. Its combination of accessibility, powerful features, and business-focused tools ensured sustained growth and customer satisfaction.
8. 25% of New Wix Websites Are Built Using AI
Wix has embraced artificial intelligence (AI) to simplify the website-building process.
In 2016, the company launched its first AI-based website builder, Wix ADI (Artificial Design Intelligence). This tool allowed users to generate a fully designed website by answering a few questions about their business or goals.
The AI technology reduced the complexity of creating a website, helping users get started faster. As Avishai Abrahami explained:
“AI has made website creation faster, easier, and more personal than ever” (Foundr interview).
By leveraging AI, Wix made the process more intuitive and accessible to a broader audience.
Making Website Creation Frictionless
AI tools allowed users to focus on storytelling and customization rather than technical hurdles.
Wix ADI’s ability to search the web for relevant content and automatically populate sections of a website saved users time and effort. This innovation addressed a major pain point in website creation: building the first version.
In 2024, 25% of new websites on Wix were created using AI, demonstrating the growing popularity of this feature. The company continues to invest in AI advancements, making website creation even more seamless. These tools have become a key driver of user satisfaction and retention.
Wix’s adoption of AI has helped it stay ahead in a competitive market. By reducing barriers and empowering users with innovative tools, Wix has positioned itself as a leader in the website-building space.
9. Wix’s ARR Grew 40% by Outpacing Competitors
Wix has consistently stayed ahead of competitors like WordPress, Squarespace, and Shopify by focusing on innovation.
The company introduced tools and features that addressed real user pain points, making sure its platform remained one of the most user-friendly options available.
Unlike many competitors that catered to niche audiences, Wix offered solutions for a diverse range of users, from personal bloggers to SMBs and e-commerce businesses.
“We didn’t just build features; we solved real problems for users.”
Avishai Abrahami (Foundr interview).
This approach helped Wix attract a growing number of loyal customers.
Staying Ahead with User-Centric Tools
By emphasizing design flexibility and usability, Wix outpaced platforms like Squarespace, which focused primarily on creative professionals.
Meanwhile, its e-commerce tools rivaled Shopify, offering robust features for businesses without requiring technical expertise.
Between 2020 and 2022, Wix’s Annual Recurring Revenue (ARR) grew by an impressive 40%, highlighting its ability to innovate and capture market share. The introduction of AI-based website-building tools and advanced marketing integrations further solidified its competitive edge.
Wix’s focus on user needs has been the foundation of its success. By consistently evolving its platform and outpacing competitors, the company has cemented its position as a leader in the website-building market.
10. Wix’s 90% Retention Rate: Build a Product No One Wants To Leave
Wix didn’t stop at website building—it expanded into a full ecosystem of tools to support businesses and creators.
The company introduced features like marketing integrations, e-commerce capabilities, and customer relationship management (CRM) tools.
These additions made sure users could manage their entire online presence within the Wix platform.
This strategy made Wix more than just a website builder. Users found value in staying within the ecosystem, as it simplified their workflows and eliminated the need for multiple software subscriptions. As Avishai Abrahami explained:
“We built a platform where users could not just create but thrive” (Foundr interview).
Expanding Beyond Websites
Wix’s ecosystem strategy played a key role in retaining premium users.
Features like the Wix App Market allowed users to customize their websites with third-party integrations, while built-in analytics tools gave them insights into performance. These tools kept users engaged and satisfied.
By 2024, premium user retention exceeded 90%, demonstrating the effectiveness of this ecosystem. Once users committed to Wix, they rarely left, thanks to the comprehensive suite of tools and seamless user experience.
This end-to-end solution transformed Wix into a powerhouse for businesses of all sizes. By creating a sticky platform, the company ensured long-term loyalty and consistent revenue growth.
11. Wix’s $10 Billion IPO: A Transformative Moment
In 2013, Wix made history by becoming one of the first Israeli tech companies to go public on the NASDAQ.
The initial public offering (IPO) marked a turning point for the company, providing the capital needed to scale globally and enhance its platform.
Wix raised $127 million during the IPO, valuing the company at just over $750 million at the time.
The decision to go public was a strategic move that allowed Wix to accelerate growth.
“Taking Wix public was transformative for our company and the local economy.” Avishai Abrahami (Foundr interview).
The IPO gave Wix the resources to invest heavily in R&D and expand its product offerings.
Scaling Globally Post-IPO
After the IPO, Wix focused on reaching new markets. It enhanced its marketing efforts and localized its platform to attract users worldwide. These initiatives fueled rapid adoption, solidifying Wix as a global leader in website building.
By 2024, Wix’s valuation had exceeded $10 billion, a testament to its growth and innovation. The IPO wasn’t just a financial milestone—it was a springboard for the company’s evolution into a SaaS powerhouse.
The public offering not only transformed Wix but also elevated Israel’s reputation as a hub for tech innovation. The company’s success inspired countless startups and underscored the potential of Israeli tech on the global stage.
12. Wix Invests Over $100 Million Annually in R&D
Wix’s future lies in continuous innovation, and the company is doubling down on research and development (R&D) to stay ahead.
Each year, Wix allocates over $100 million to R&D, focusing on artificial intelligence, integrations, and tools that make website creation even more seamless.
One of Wix’s key initiatives is advancing AI technology to reduce friction in website building. Features like Wix ADI and smart recommendations are helping users build personalized websites faster than ever.
“AI will redefine how businesses tell their stories online.”
Avishai Abrahami (Foundr interview).
Building for Agencies and Professionals
Another critical area of focus is building partnerships with agencies and professionals.
Wix Studio, a platform tailored to creative agencies, empowers professionals to design and manage websites at scale. This expansion is helping Wix tap into new markets and drive additional growth.
The company also aims to create more tools that support small businesses, from e-commerce solutions to marketing automation. These features ensure that Wix remains indispensable for its users.
By prioritizing R&D, Wix is positioning itself to lead the next era of website building.
13. Decision-Making: Empowering Teams and Scaling Smarter
As Wix scaled, CEO Avishai Abrahami recognized that centralized decision-making could become a bottleneck. Instead of controlling every detail, he focused on empowering his teams to take ownership. “If I’m the smartest person in the room, I’ve hired the wrong team,” Abrahami explained (Foundr interview).
Abrahami delegated decisions across teams to ensure agility and innovation. He trusted his employees to manage tasks like product development, marketing strategies, and operational improvements. This approach allowed the company to scale without losing focus on its core mission.
A Framework for Smart Decision-Making
To ensure alignment, Wix established clear KPIs and goals for every team. Employees were given the tools and autonomy to meet those benchmarks. Abrahami’s role shifted to high-level strategy, focusing on resource allocation and long-term vision.
This decentralized structure fostered creativity and efficiency. Teams could act quickly, adapt to market changes, and bring new ideas to life without waiting for top-down approval. This flexibility became a competitive advantage as Wix scaled globally.
Wix’s ability to delegate decisions and empower its workforce contributed to its growth to $1.7 billion in annual revenue. By focusing on building strong teams, the company created a culture of trust, innovation, and success.
Key Takeaways From Wix’s $1.7 Billion Journey
Wix’s rise to $1.7 billion in annual revenue isn’t just a story of technology—it’s a masterclass in innovation, adaptability, and user-centric growth.
From its beginnings as a file-sharing platform to becoming one of the leading website builders globally, Wix has consistently demonstrated what it takes to thrive in a competitive SaaS market.
1. Listen to Your Users
One of the first lessons from Wix’s journey is the power of listening to users. In its early days, the company explored 11 different ideas, from Myspace tools to e-cards, before landing on website building. It was user demand that steered them toward this focus.
As CEO Avishai Abrahami said:
“Users showed us the path to success—beautiful, user-friendly websites” (Foundr interview).
This commitment to understanding what users needed continued to drive their innovation. From customer feedback loops in the early days to introducing AI-based tools like Wix ADI, Wix has always built solutions tailored to real-world challenges.
2. Solve Big Problems Simply
Wix’s initial pivot to website building wasn’t just about entering a new market; it was about addressing a widespread frustration. Building websites in the early 2000s required coding knowledge, expensive developers, or tools that produced uninspiring results. Wix simplified this process with its drag-and-drop editor, empowering users to create stunning websites without technical skills.
By removing barriers, Wix tapped into a massive, underserved audience. This strategy didn’t just attract users; it turned them into loyal advocates. A survey revealed that 70% of Wix users chose the platform for its design flexibility, showing how much users value the ability to create something uniquely theirs.
3. Freemium Models Build Trust
The freemium model became a cornerstone of Wix’s success. Offering a free plan with optional premium upgrades allowed users to experience the platform’s value with zero risk. This approach lowered the entry barrier, helping Wix attract millions of users early on.
Over time, the freemium model proved its effectiveness. More than 10% of Wix’s free users converted to premium plans, exceeding industry averages. This not only fueled revenue growth but also established trust with users, ensuring long-term loyalty.
4. Focus on Design and Aesthetics
Wix understood early on that design matters. While competitors like Google Sites and Freewebs provided basic templates, Wix went a step further, offering customizable, professional-grade designs. The platform allowed users to tell their stories beautifully, whether they were building personal blogs or small business websites.
“People care deeply about how their websites look, and we built for that,” said Abrahami (Foundr interview). By prioritizing aesthetics and usability, Wix became a go-to platform for creators, entrepreneurs, and SMBs alike. This focus on design remains a key reason why the platform powers over 4.5 million SMB websites today.
5. Embrace Innovation
Innovation has been a constant in Wix’s story. In 2016, the company launched Wix ADI, an AI-based website builder that simplified the process even further. This tool allowed users to create websites by answering a few questions, making the process faster and more intuitive.
By 2024, 25% of new Wix websites were created using AI, underscoring how these tools resonate with users. Abrahami explained, “AI has made website creation faster, easier, and more personal than ever” (Foundr interview). This forward-thinking approach has helped Wix stay ahead of competitors and address evolving user needs.
6. Build an Ecosystem, Not Just a Product
Wix didn’t stop at website building; it expanded into a full ecosystem. Features like e-commerce tools, marketing integrations, and CRM systems allowed users to manage their businesses entirely within the platform. The Wix App Market further enhanced this ecosystem, enabling users to customize their websites with third-party apps.
This strategy created a “stickiness” that kept users engaged. By 2024, premium user retention exceeded 90%, a testament to the value of its comprehensive platform. As Abrahami put it, “We built a platform where users could not just create but thrive” (Foundr interview).
7. Delegate and Empower Teams
As Wix grew, Abrahami embraced a decentralized approach to leadership. He empowered his teams to make decisions, focusing his efforts on strategy and long-term growth. “If I’m the smartest person in the room, I’ve hired the wrong team,” he said (Foundr interview).
This decision-making framework allowed Wix to scale efficiently while maintaining its innovative edge. By trusting his team to deliver, Abrahami ensured the company could adapt quickly to market changes and user needs.
8. Leverage Funding Strategically
Wix’s IPO in 2013 was a pivotal moment. The company raised $127 million, which it used to invest in R&D, global expansion, and platform enhancements. This strategic use of funding allowed Wix to maintain its growth trajectory and solidify its market position.
By 2024, Wix’s valuation had surpassed $10 billion, highlighting the long-term impact of its IPO. The success of its public offering also positioned Wix as a trailblazer for Israeli tech companies, inspiring others to follow suit.
9. Stay User-Centric
Above all, Wix’s journey shows the importance of staying user-centric. From the earliest days of gathering feedback to its ongoing investments in AI and design flexibility, the company has always prioritized solving real problems for its users.
This focus on delivering value is why Wix powers 240 million users worldwide and continues to grow. By keeping users at the heart of its strategy, Wix has built a brand that resonates across industries and geographies.
A Model for SaaS Success
Wix’s rise to $1.7 billion in annual revenue is a testament to its adaptability, innovation, and user-focused approach. Its journey offers SaaS founders a blueprint for success: identify user needs, solve meaningful problems, and constantly innovate to stay ahead.
For businesses looking to emulate this success, the takeaway is clear. Build trust, listen to your users, and deliver solutions that empower them to grow. By following these principles, any SaaS company can unlock its potential and create lasting impact.
