Question

What is the Canva Business Model? How do they make money? Relate to the different types of revenue models.

Answer 1

Canva is basically a design application which allows the users to develop different art forms like posters, logos, infographics, online. The company uses a Freemium business model. In this model, a set of users are able to access the basic features of the application for free. However these basic features are limited and hence have a constraint. There is another set of users, who can pay for advanced version of the application. This advanced application will have enhanced features and functionalities. Usually professionals opt for the advanced version of the application. The revenue stream of Canva is based on these advanced users of the company. The company also offers a corporate subscription in which the companies can buy group subscriptions for its employees at special rates. This subscription also helps in generating the revenue of the company.

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