Wix: The Internet Storefront - [Business Breakdowns, EP. 10]

29 snips

May 26, 2021

In this discussion, Dave Ambrose, a seed-stage software investor with deep expertise in web-based businesses, dives into the success of Wix. He highlights how Wix transformed website creation for non-tech users, becoming essential for small businesses. They explore the evolution of Wix's freemium model and its strategic pivots, like transitioning to HTML5. Ambrose also compares Wix with competitors like WordPress, shedding light on Wix's unique strategies that foster customer loyalty and innovative marketing in a crowded digital landscape.

Ask episode

AI Snips

Chapters

Transcript

Episode notes

INSIGHT

Wix as a Digital Storefront

Wix allows individuals and businesses to easily establish an online presence, like creating a digital storefront.
This simplifies website building, enabling anyone to have a space on the internet.

ADVICE

Wix Freemium Model

Wix offers a freemium model, allowing users to experience the platform's features without initial cost.
Start with a free account to explore the editor and drag-and-drop interface for website creation.

ANECDOTE

Rayo's Restaurant on Wix

Dave Ambrose discovered Rayo's restaurant via their Wix website, demonstrating Wix's functionality.
He found that Wix powered their entire online presence, from ordering to checkout.

Get the Snipd Podcast app to discover more snips from this episode

Get the app

Today, we will be breaking down Wix. Founded in 2006, Wix was created to make building websites easier. Fifteen years later, the Wix platform boasts over 180 million registered users and 4.5 million premium subscribers worldwide.

In this breakdown, we will explore how the company helped to lay the rails for small businesses to get on the internet. We cover the development strategies that linked Wix to the creator economy. We touch on the evolution of the freemium business model, and we analyze what differentiates Wix as a one-stop-shop from an increasingly competitive market.

For this episode, I am joined by Dave Ambrose. Dave is a seed-stage software investor focused on the skills and knowledge economy. Dave focused on the digital creator economy well before it was a widely adopted investment thesis - and as a former co-founder and operator - he is an expert on web-based businesses.

For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.

-----

Business Breakdowns is a property of Colossus, Inc. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.

Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.

Show Notes

[00:02:52] - [First question] - The customer journey on Wix

[00:05:44] - How a businesses relationship with Wix progresses

[00:09:24] - Revenue model for Wix

[00:10:08] - The addition of the app marketplace to the Wix platform

[00:13:06] - Their customer acquisition strategy

[00:14:10] - A business that creates the rails for other businesses

[00:16:52] - The stickiness of their customer base

[00:18:47] - First major turning point - when Wix started charging customers

[00:20:39] - Second major turning point - shift to mobile browsing and getting away from Flash

[00:23:50] - The full landscape for website builders

[00:28:13] - How the companies he invests in build their web presence and the challenges of building on Wix

[00:30:52] - The Wix vs WordPress battle

[00:33:41] - Wix’s horizontal integration strategy

[00:37:14] - Being the rails for small businesses to get onto the internet

[00:41:49] - What other business operators can learn from Wix

[00:45:21] - What investors can learn from Wix