How does Grammarly make Money | 2022 Full Business Model

how does grammarly make money
how does grammarly make money

In the world today, effective conveying of information is an essential element for the sustainability of human life. That is to say, effective language and grammar play a role in our daily lives.

Grammarly is an online software company just like Ginger Software, Virtual Writing Tutor, Reverso, WhiteSmoke, LanguageTool, PaperRater, ProWritingAid, Slick Write, and Sentence Checker.

It has grown to be one of the most successful self-help tools on the web.

Over the years, the company has used different models to sell its work. One of the models is grammar analysis which helps millions of users type clear, error-free, and accurate text. This has helped to effect an effective communication system.

Currently, it uses the Freemium model where users are allowed to access most of the features for free. Now, if this free model is still on, How then do Grammarly make Money to sustain its system?

In the following lines of this article, You’ll learn about Grammarly’s Business Model and how it makes its money.

About Grammarly

Grammarly is a technology company offering various applications aimed at improving people’s writing style and grammatical correctness.

In other words, it’s a one-stop shop with many tools and procedures to clarify messages and documents without errors. Its core aim is to improve the way users communicate when they write online.

Founded in 2008 by Alex Shevchenko and Max Lytvyn, Grammarly has doubled its staff each year. The app gets around 15 million active users every day and has raised a whopping sum of $110 million in revenue growth.

Currently operating from three locations; New York, San Francisco, and Kyiv, Grammarly has expanded its reach with its world and vision to be a complete communications helper.

Also, it has quietly grown as one of the most successful self-funded products on the web.

About Grammarly Business Model

Grammarly has a Business Model that leverages on a freemium service, where free users are prompted to switch to a paid subscription at will. 

This subscription-based freemium SSAS business Model helps its users to write a zero-plagiarism article in the following platforms:

#1. Grammarly extension

This is an extension that can be used on Google Chrome, Apple Safari, Microsoft Edge, and other browsers. With this addon, you can also write an error-free article on Facebook, Linkedin, and other social media platforms.

#2. Grammarly App

This is a native app that you can download as a window application. This app is designed in such a way that it updates automatically to ensure that you always have the latest version.

#3. Grammarly Keyboard

This keyboard can be downloaded on Android and iOs devices. The Grammarly keyboard has features like grammar checker, spelling checker, punctuation correction, and vocabulary enhancements.

#4. Grammarly for MS Office

This platform helps to write without having much grammar and errors in punctuation.

Other platforms Grammarly provides for its users to write high-quality content include Grammarly Handbook, Facebook and Twitter community & Grammarly Blog.

Read: 11 Websites where you can write and get paid instantly

How Does Grammarly Make Money?

Like I mentioned earlier, Grammarly operates on a freemium-based business model. It’s a kind of pricing strategy where a software company provides their software/service free of charge for a watered-down version.

This means that users get the main products for free and pay to access the advanced features of the products. Most companies in the world today like Dropbox and Trello use this model.

Though Grammarly was making money when it was using the premium Model, the introduction of Freemium helped in increasing its funds, product expansion, and active users.

Grammarly makes their money using this model through the following:

  • Subscription Plans
  • Grammarly@EDU
  • Human Proofreading Service

Subscription Plans

These Subscription Plans are in three parts. First is the Free plan which any Grammarly application has. With this plan, there is little you can do with Grammarly. That is why it’s advisable you subscribe to a higher plan.

The Premium plan allows you to gain access to advanced features such as tone detection, politeness, sentence variety, and plagiarism detection. Also, it ensures content conciseness, readability, and many more. The charge is $11.66 per month.

The Business plan is the highest plan. This plan has the same features as the Premium Plan. The only difference is that more than 10-100 users can use the same account. The charge is $12.50 per month.


Grammarly@EDU is another way Grammarly makes money aside from subscription plans. This application is specifically for students at different institutions. It allows students to write educational articles, proofread, and cite sources of their articles.

Currently, more than 1,000 educational institutions partner up with Grammarly. The charges are not disclosed publicly.

Human Proofreading Service

The company also makes money by offering Human Proofreading Services to both individuals and businesses. The charge is based on the word count and deadline for the project.

Check Also 11 Best Paid Online Research Studies That Pay Up $150/hr In 2022

Bottom Line

Quite a number of online companies with the same aim as Grammarly exist, but Grammarly has recorded more success than them all. This is in terms of users, features, and platforms.

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like