Why is WordPress Free? What are the Costs? What is the Catch?

Why Is WordPress Free? What Are the Costs? What‘s the Catch? (2023)

One of the most common questions we get from people new to WordPress is: "If WordPress is so great, why is it free? What‘s the catch?"

It‘s a valid question. After all, most software that powers over 40% of all websites in the world would cost at least something, right?

The truth is, yes, WordPress is free. But there are still costs involved in running a WordPress website, and many hugely successful companies have been built around WordPress‘s open-source software.

In this article, we‘ll dive into exactly why and how WordPress is free, what costs are involved in running a WordPress website, how companies make money with WordPress, and what the catch is (if any).

Let‘s start with the basics…

What Does Free Mean When It Comes to Software?

It‘s important to understand that when we say "free", we‘re talking about the WordPress open-source software itself, not the cost of actually running a website using WordPress. More on that later.

So what does "free" mean in the context of software?

When software is free, it usually means one of two things:

  1. Free as in beer – The software doesn‘t cost any money, plain and simple. Think freeware or shareware programs.

  2. Free as in speech – The software is liberally licensed to grant users the rights to use, study, change, and distribute the software and its source code to anyone and for any purpose. This is known as "free software" or "open-source software".

WordPress is free in both these senses. The open-source WordPress software is available for anyone to download, use, modify, and redistribute entirely for free and with no restrictions. That‘s pretty amazing!

But how can software that powers over 40% of the web be developed and given away for free? To understand that, we need to look at the philosophy behind open-source software…

The Open-Source Philosophy: Software Should Be Free

The driving idea behind free and open-source software is that software should be freely shared and improved upon by a community of developers, rather than restrictively licensed and sold by a single company.

According to this philosophy, the collaborative development of open-source software leads to stronger, more flexible, more secure, and just all-around better software than closed-source models. And by granting software freedoms to users, open-source software benefits society as a whole.

Successful open-source software projects are built on vibrant communities of developers and users who all contribute in some way to making the software better. The WordPress open-source project is a shining example of how well this model can work.

While it may seem counterintuitive, giving software away for free can lead to bigger and better things in the long run than trying to sell it. We‘ll touch on how WordPress businesses make money a little later on.

So now we understand the philosophy behind open-source software in general. Let‘s take a look at how it applies to WordPress…

WordPress: Free and Open-Source Software

The WordPress source code is free and publicly available for anyone to view, download, use, modify, and redistribute however they like. This is made possible by its GNU Public License (GPL).

Under the GPL, you have the freedom to:

  • Run the WordPress software for any purpose
  • Study how the WordPress software works and change it as you wish
  • Redistribute copies of the original WordPress software
  • Distribute copies of your modified versions of WordPress

In short, you are free to do pretty much anything you want with the WordPress software. You can use it to build any kind of website, you can examine and tinker with the code, and you can package it up and share it with anyone.

But it‘s important to note that if you modify and distribute WordPress, your modified version must also be licensed under the GPL. This ensures that WordPress and any derivative works will always remain free and open-source.

The GPL doesn‘t put any restrictions on what you do with the end product you build with WordPress. So if you build a WordPress website, that site and its content are 100% yours. The GPL applies to the underlying WordPress software, not what you build with it.

So WordPress itself will always be free thanks to the GPL. The WordPress Foundation, the non-profit organization behind WordPress, ensures that WordPress will continue to be developed as free, open-source software for the long haul.

But just because WordPress is free doesn‘t mean it‘s not a highly valuable global brand. Let‘s take a quick look at how the Foundation protects WordPress through trademarks…

WordPress Trademarks

While the WordPress software is free under the GPL, the WordPress name and logo are trademarked. The WordPress Foundation owns and protects these trademarks.

This is why you‘ll often see businesses and products use "WP" instead of "WordPress" in their names. Using "WordPress" in a domain name or product name is against the official trademark policy, even if the product is free.

For example, our site here at WPBeginner isn‘t called WordPressBeginner. We respect the WordPress Foundation‘s trademark policy.

The goal of the policy is to prevent consumers from getting confused about what is an official WordPress product vs a third-party one. The WordPress Foundation wants it to be crystal clear what comes directly from them vs other companies and developers.

So now we know why and how WordPress itself is free. But that‘s only half the story.

Even though the WordPress software is free, running a WordPress website isn‘t. There are unavoidable costs involved. So let‘s break those down…

The Real Costs of Running a WordPress Website

While you can download and use the WordPress software 100% for free, the reality is that running a live WordPress website comes with some costs.

At a minimum, you‘ll need:

  1. WordPress hosting (starts at ~$3/month)
  2. A domain name (starts at ~$12/year)

WordPress is self-hosted, meaning you need to install it on your own web hosting. And in order for people to access your WordPress site, you need a domain name that points to your hosting account.

These two things are unavoidable costs of running a live WordPress website. But the good news is you can get started for super cheap.

With a reputable shared hosting provider like Bluehost, you can get WordPress hosting for as little as $2.75 per month. And if you get your hosting through Bluehost, they‘ll even throw in a free domain name for the first year.

So your minimum startup costs for a basic WordPress site can be under $50. That‘s extremely affordable!

Of course, as your site grows you may want to upgrade to higher performance WordPress hosting, which can cost a bit more ($30+/month). But by that time, your site will likely be generating enough revenue to easily cover the costs.

Beyond the essential hosting and domain costs, there are some other optional costs to consider:

  • Premium WordPress themes (one-time cost, usually $30-100)
  • WordPress plugins (some are free, some are paid)
  • Developer costs for custom design/development work

It‘s important to understand that these additional costs are completely optional. The free WordPress software combined with a free theme and free plugins can take you a long way.

In fact, one of the reasons WordPress is so popular is that it‘s possible to build a fully-functional, professional website without spending much money at all.

So you have a lot of control over your total costs. You can choose to bootstrap it and keep things super lean, or invest in premium tools and services if you have the budget. The choice is yours.

Over time as your site grows, your hosting costs may go up. And if you need some custom development work done, you‘ll need to factor in those costs as well. But in general, the ongoing costs of maintaining a WordPress site are very reasonable.

So while WordPress itself is free, running a live WordPress site isn‘t. But it‘s still extremely cost-effective compared to other website solutions. And there are plenty of ways to keep your costs low if you‘re on a tight budget.

But what about the companies and developers who are pouring time and resources into developing WordPress itself and all the themes, plugins, and services around it? How do they make money if WordPress is free?

Excellent question! Let‘s take a look…

How WordPress Companies Make Money

The WordPress ecosystem is huge. Tens of thousands of developers around the world contribute to WordPress, and thousands of companies offer WordPress-related products and services.

So how do these people and companies make money when the core WordPress software is free?

Let‘s break it down…

Automattic and WordPress.com

Automattic is the company founded by WordPress co-founder Matt Mullenweg. Automattic‘s most well-known product is WordPress.com.

WordPress.com is a for-profit, hosted version of WordPress where you can create a website using the WordPress.com subdomain for free. So instead of installing the open-source WordPress software on your own hosting like we discussed above, you can create a free account at WordPress.com and they‘ll host the site for you.

The catch is that WordPress.com‘s free plan is fairly limited. It displays ads on your site that you can‘t control, and you‘re limited in terms of customization options and features unless you upgrade to a paid plan.

WordPress.com‘s paid plans range from $4/month up to $45/month. The more you pay, the more features and customization options you get.

So while WordPress.com does offer a free plan, its paid plans are how Automattic makes money.

It‘s important to understand that WordPress.org and WordPress.com are run by two completely separate entities. WordPress.org is the home of the open-source WordPress software project, while WordPress.com is a for-profit service offered by Automattic that uses the WordPress software.

Hosting Companies

We already touched on hosting costs above, and this is probably the most obvious way that companies make money with WordPress.

In order for a WordPress site to be accessible to visitors on the web, it needs to be hosted on a web server. And that‘s where WordPress hosting companies come in.

Companies like Bluehost, SiteGround, WP Engine, and Kinsta all offer WordPress hosting. Some offer cheap shared hosting that‘s fine for small sites, while others focus on higher-end managed WordPress hosting optimized for performance.

Hosting companies generally charge a monthly fee based on the resources and level of support you need. Hosting is what powers your WordPress site, so it‘s an essential cost of running a WordPress site.

Theme and Plugin Developers

The WordPress ecosystem includes thousands of themes and plugins, many of which are completely free. But there are also lots of premium themes and plugins that you have to pay for.

Theme and plugin developers create products that extend the design and functionality of WordPress. Popular examples of premium theme shops include StudioPress, Elegant Themes, and Themify.

And when it comes to plugins, there are thousands of premium plugins that add all kinds of useful features to WordPress, from contact forms to ecommerce functionality to SEO optimization.

Some plugin developers, like Gravity Forms, sell traditional licenses to use their plugins. Others, like MemberPress, charge monthly or annual fees for support and updates.

So while there are plenty of great free themes and plugins out there, premium theme and plugin developers have built successful businesses by filling in the gaps and offering additional features and customization options.

Freelancers and Agencies

The WordPress economy also includes tens of thousands of freelancers and agencies who make money by building WordPress sites for clients.

Since WordPress is free and open-source, anyone can download it and start building sites with it. A lot of freelance designers and developers make a living by working with clients to build custom WordPress sites from scratch.

And on the higher end, large digital agencies often use WordPress as their platform of choice for client websites. Since WordPress is so flexible and customizable, it can be used to build everything from small business websites to large enterprise sites.

Freelancers and agencies charge clients for their design and development services, rather than for the WordPress software itself. But they wouldn‘t be able to run their businesses if WordPress wasn‘t free and open-source.

Content Creators

Finally, many content creators and online entrepreneurs use WordPress to build content-based websites and blogs. They make money through things like advertising, sponsored content, affiliate marketing, and selling their own products and services.

So while they may not be selling WordPress products directly, they‘re using WordPress to power their online businesses.

The free, open-source nature of WordPress means that anyone can use it to build a profitable website or blog without having to invest in expensive, proprietary software.

Of course, these content creators still have to pay for hosting and any premium themes/plugins they might be using. But the point is that the free, open-source WordPress software levels the playing field and makes it possible for anyone to get started with their own website for very little up-front investment.

So as you can see, there are many different ways that businesses and individuals make money with WordPress. The WordPress economy is thriving, even though the core software is free.

What‘s the Catch?

So we‘ve covered why WordPress is free, what costs are involved in running a WordPress site, and how people make money with WordPress.

But what‘s the catch? There‘s got to be a catch, right?

Honestly, there isn‘t much of a catch. You really can download WordPress for free, use it to build a website, and do whatever you want with that website.

The only real "catches" are:

  1. You need to pay for your own hosting.

  2. If you use a free theme or plugin, you might not get support or updates (so it‘s worth investing in premium tools if you can afford it).

  3. If you customize WordPress yourself, you need to know what you‘re doing so that you don‘t break anything or create security vulnerabilities.

  4. Running a successful WordPress site takes time and effort (but that would be true no matter what platform you use).

But in general, the free and open-source nature of WordPress is a huge benefit, not a catch. It‘s what makes WordPress so popular and powerful.

You have the freedom to do whatever you want with WordPress and your website. You‘re in control of your data, your content, and your platform.

Unlike closed-source, proprietary website builders like Squarespace or Wix, you‘re not locked into a specific company‘s ecosystem. You‘re not at the mercy of their prices, their feature limitations, or their business decisions.

With WordPress, you have the freedom to build the website you want and run it the way you want. And isn‘t that what we all want?

The Bottom Line on Why WordPress is Free

To sum it all up:

The core WordPress software is free because it‘s open-source and liberally licensed under the GPL. Anyone can legally download, use, modify, and redistribute it for free.

WordPress was built by a volunteer community of developers who wanted to create a powerful, flexible platform that anyone could use to build a website. The open-source model allows WordPress to thrive and remain free in the long run.

The WordPress Foundation protects the WordPress trademarks. The WordPress name and logo cannot be used without permission from the Foundation.

While WordPress itself is free, there are costs involved in running a self-hosted WordPress site, including hosting (~$3+/month) and a domain name (~$12+/year). Optional costs include premium themes, plugins, and custom development work.

Many companies and individuals make money by providing WordPress products and services, including hosting, themes and plugins, and freelance design and development. Others use WordPress to make money from content-based websites and blogs.

So while WordPress is free, the WordPress economy as a whole is thriving. The open-source nature of WordPress creates endless opportunities for businesses and individuals to build and profit from WordPress-powered websites.

The only real "catch" is that WordPress isn‘t a magical "free" solution. It still takes time, effort, and some financial investment to build and run a successful WordPress site.

But isn‘t it amazing that you can download world-class, open-source website software for free? We certainly think so!

What do you think about WordPress being free and open-source? Is it a model that other software projects should follow? Or does it have downsides? Let us know in the comments!

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