TextNow makes money through a combination of advertising and premium services.
Advertising
TextNow displays ads to users within the app, primarily on the home screen and within the app's settings. These ads can be in the form of banners, interstitials, or video ads. Users can choose to opt out of some ads by subscribing to TextNow's premium service, but ads are still displayed for basic users.
Premium Services
TextNow offers additional features and services for a monthly subscription fee. These premium services include:
- Ad-free experience: This removes all ads from the app.
- International calling: Allows users to make calls to international destinations at a discounted rate.
- Data rollover: Allows users to carry over unused data to the next month.
- Higher data limits: Provides users with larger data allowances for their monthly plan.
- Custom phone numbers: Enables users to choose a specific phone number.
Examples
Some examples of how TextNow generates revenue include:
- Displaying ads for a local pizza restaurant on a user's home screen.
- Offering a premium subscription to remove ads and unlock international calling features.
- Partnering with mobile carriers to offer users affordable data plans.
Insights
TextNow's business model is based on providing users with a free basic service while generating revenue through advertising and premium features. This approach allows them to attract a large user base while offering additional benefits for those who choose to pay for a premium experience.