Today we use multiple web portals for work, learning, entertainment, communication, personal care, and other needs. Each app allows users to create profiles and manage them according to their preferences. So we secure them with a password to prevent unauthorized access.
Since modern internet users use various websites and apps, it can be daunting to keep track of all passwords. It has also become quite important to pick a complex password to prevent hacking.
It’s too risky to jot down those passwords in a notebook or on paper. LastPass is offering a digital solution for this problem. But how does it make money?
LastPass is free to store users’ passwords and important documents in encrypted form. Many users switch to LastPass’s premium subscription to get advanced features associated with the chosen package. Thus, LastPass majorly makes money with its premium subscription.
Let’s dive deeper into the LastPass business model.
What is LastPass?
It is a free password manager available for all types of users. It allows users to store their important passwords and private keys in encrypted form online. Those who use multiple password-protected apps on a daily basis, can use LastPass and save a lot of time.
Users can use the LastPass website to create an account and store private data. It is also available as a web browser plugin and as a smartphone app as well. Therefore, LastPass can entertain millions of users on different devices at the same time.
This app has completely eliminated the need to write important passwords in a notebook or slip. It eliminates the risk of losing passwords because those private keys are stored on a secure server in encrypted form. LastPass enjoys the public’s trust because it has served millions of users and protected their data exceptionally well.
This award-winning manager has been around since 2008 and it has entertained millions of active users. It protects the user’s data with cutting-edge technologies to prevent a breach that could cost your account(s).
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Joe Siegrist had established LastPass with other co-founders because he was facing the same issue faced by millions of internet users. They wanted to have a better way of managing all their passwords and accessing them whenever required.
Joe and others decided to develop a platform to store randomly generated passwords.
LastPass co-founders had found a way to create complex and secure passwords and easily store them in encrypted form. They worked on this idea and evolved it with time to make it available on various platforms.
The LastPass founding team has worked tirelessly to improve security measures. It has added several other features to allure businesses and common users from various countries. Let’s explore more about LastPass’s history to learn how it became so successful.
It began with an idea!
Joe Siegrist is the co-founder and CEO of the LastPass Company. He had founded LastPass with three other co-founders. They came up with LastPass’s idea because they were experiencing password-related issues themselves.
The founders found it quite challenging to protect important passwords safely. They used an encrypted file to protect that data, but decrypting was a tiring task. It was daunting to encrypt new passwords, decrypt them, and synchronize the file data every time.
The entire process was a bit messy and Joe and his team decided to simplify it (just like how most startups are born!)
Introduced a Universally Accessible Solution
LastPass was introduced with a goal to make it universally accessible. The founders wanted to entertain all internet users so that they can easily access their private keys and other information stored online.
LastPass first targeted major platforms, such as Windows, Mac, Linux, and then browsers, such as Firefox and Internet Explorer. This company’s founders coped with many challenges and came up with unique solutions to upload their apps on the respective platforms.
The Toughest Challenge for LastPass
It was a challenging task for the LastPass team to educate users about a cloud-based password manager application. When people thought about saving their passwords “online”, they immediately got afraid of hackers breaking in and stealing their data.
But with time, they slowly understood that their password never reaches LastPass’s servers. It is encrypted and therefore nobody can access the secure key people use to lock their online profiles and access them.
The online community slowly started using LastPass’s services and today it’s one of the leading online password manager programs.
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How Does LastPass Make Money?
LastPass offers both free and premium services. It has three different plans for users that include Free, Premium, and Family plans. Many people pick the free package. It offers standard features, such as auto-filling data, one-to-one sharing, secure password generator, secure notes, multi-factor authentication support, and a password strength report.
Features associated with the free plan are enough to satisfy regular users. Free users could sync the LastPass with any platforms they use. Now, free users need to pick between desktop and mobile syncing. Thus, many users are now encouraged to switch to LastPass’s premium subscription.
Users pay $36 per year for LastPass premium, which includes features like:
- One-to-many sharing
- Emergency access
- Cutting-edge multifactor options
- Dark web monitoring
- LastPass protection for apps
- Priority tech support
- Storage up to 1GB of encrypted data.
Previously, free users could also access emergency support tools, but now this feature only comes with the paid plan.
Users with a top-tier corporate account pay $48 annually to use LastPass. This company is providing many exciting features that encourage free users to become premium members.
Being the leading cloud-based password manager platform, LastPass has experienced a 50% annual growth rate since 2018! This company is entertaining over 30 million active users. A significant number of users are premium subscribers.
Over 85,000 businesses are using this company to protect their passwords. Most of them have chosen LastPass’s premium services. Thus, the corporate sector also plays an important role in improving LastPass’s annual revenue.
How does LastPass encourage users to switch to its premium services?
People choose LastPass because it is a safe and feature-rich password manager platform. It is offering a free subscription, but many people switch to premium subscription plans. This platform has managed to convert free users into premium subscribers by offering the following features.
Multiple Device Support
People access web-based services through various devices. LastPass’s free subscribers can use only one type of device to access its services. If a user has synched his desktop, he cannot use the smartphone to use LastPass’s services for free. The same applies to mobile phone users.
As the user decides to use LastPass premium, he/she can unlimited devices to access this platform. Both Premium and Family plan users can synch any type of device to this platform and protect their passwords and confidential notes.
One to Many Sharing
LastPass does not offer a one-to-many password sharing facility if you are a free user. You have to subscribe to its premium or family services to enable the one-to-many sharing feature. Thus, you can share the account with other trusted individuals. These individuals can be your business partners, assistants, employees, or family members.
LastPass was originally introduced to store users’ complex passwords. Today, it is offering 1GB of free space to its premium users. Many people chose the premium service because they could use the free space to store up to 3,000 important documents, such as credit cards, passports, debit cards, and so on.
LastPass allows you to scan and upload important documents immediately. You can use the free space to store those documents in encrypted form. Thus, an unauthorized user will never be able to steal your files.
Security Score and Dashboard
LastPass encourages users to pick strong passwords for their social media, banking, and other online accounts. It helps premium users in assessing how strong their current passwords are. If the password is weak according to the latest security measures, LastPass help users generate the safest passwords.
This platform can also monitor users’ accounts for security breaches. If a user faces security-related threats, LastPass will send notifications to secure the account. Many users consider it a one-stop solution for their password security demands.
Dark Web Monitoring
Free users do not get any notification if a hacker tries to access their accounts without their consent. If the user buys a premium subscription, LastPass will start monitoring the user’s accounts for data breaches.
This dark web monitoring feature helps users safeguard their accounts against hackers trying to steal their information. You can avoid a mishap before it occurs and protect valuable information from getting into the wrong hands.
Cutting-edge MFA options
Premium users can use multifactor authentication to enhance the security level of their online accounts. Users can pick third-party tools and biometric authentication to protect their data. Free users do not get such protection and therefore they are deciding to become premium subscribers.
LastPass’s customer care team gives top priority to requests made by its premium subscribers. They get in quick touch with users via email and keep communicating with clients until their issues are resolved.
However, there is no dedicated support for free users in case they face technical or other issues.
LastPass’s Subscription Plans
LastPass serves both common users and business organizations. Its premium plans for common users cost $3 per month, while it charges $4 per month from families. This company provides many exciting features along with some important features described in this post.
LastPass charges $4 per month to teams and $6 per month to businesses. When a business picks the Teams subscription service, its 50 or fewer members can use LastPass’s services. Secure vaults, 2FA, zero-knowledge security model, shared folders, dark web monitoring, and security dashboard features are provided with the “Teams” package.
Businesses, which pick the Business subscription, get all the Teams’ features. Besides, the business can add unlimited users, 3 SSO apps with MFA, a free LastPass Family subscription, 100+ tailored policies, and more.
We can say that LastPass provides affordable solutions to all kinds of users. They have gained the trust of the public after securing their passwords for more than a decade!
Does LastPass offer a free trial?
Yes, LastPass is offering a 30-day free trial to common users and a 14-day free trial to businesses. Users can use this trial period to assess how effectively this cloud-based password manager protects their data.
They can unsubscribe to LastPass’s services without paying a penny if the app fails to meet the users’ demands.
LastPass has experienced a great conversion rate and thus it has become one of the most trusted password manager programs. Today, LastPass provides its services across the globe to keep users’ passwords and other information safe.
LastPass has educated people that how important it is to protect their passwords. This company has proven that it got the safest way of securing people’s passwords and other vital information.
Over 30 million users trust LastPass to protect their data. Many of those users are premium subscribers, that contribute the main source of revenue for LastPass. This company’s subscription business model has helped it expand rapidly. It is alluring many new users every day to encrypt and protect their data online!