Skype is an innovative VoIP telecommunication app that you can use to connect with family and friends worldwide and has developed over time into a multifaceted tool which allows for voice calling, video calling and messaging (IM) in one user-friendly application.
Skype makes money from 3 primary sources.
- Subscriptions and other service sales to consumers – everyday people like you and me. (this is the bulk of their revenue)
- Skype for Business – which makes workplace telephony gear, software, and provides services to businesses
- Advertising through Skype sites and in Skype apps
How Does Skype Make Money From Consumers?
Skype makes money by using a freemium business model. The Skype app is free and with the free app you can send messages and make Skype-to-Skype calls anywhere in the world; However, users also has the option of paying to upgrade their services to include premium features such as:
- SMS text messaging
- group video calling
- making calls to landlines/cell phones
Skype makes money when users pay to upgrade the Skype service.
If a user would like to upgrade services, they have 4 different options to buy premium services from Skype.
1. Skype Credit
Skype Credit is a pay-as-you-go option. Purchase some Skype Credit, and then call whoever you want at very low rates. Skype Credit is a good option if you need to make a few calls and only want to pay for what you use.
A user’s Skype Credits are charged on a debit-basis and once the user runs out of credits, they have the option to purchase more. Credits can currently be purchased in $10 or $25 increments.
$10 of Skype Credits gives the user approximately 400 minutes of talk time, depending on the country and device type (landline or cell phone). Users are able to check rates by searching for the country or region they would like to call here…
2. Skype Subscriptions
Subscriptions are monthly calling plans that let you make unlimited, or fixed-minute calls to landlines (and mobiles where applicable). A subscription is great if you make a lot of calls. All subscriptions are renewed automatically, offer a savings compared to our standard rates, and you can cancel at any time.
As of 2018, below are the current monthly Skype subscription rates in U.S. Dollars:
*Pricing differs by country.
3. Skype Phone Number
A Skype Number is a phone number that you pay for monthly. People can call you from their mobile or landline and you pick the call up in Skype. A Skype Number is great option if you, or your friends and family live in different countries, or plan to travel abroad and want an affordable way to keep in touch.
When we priced this for a US number, we were given a quote of $6.50 per month for a Skype number.
4. Skype to go
Skype to Go is a pay-as-you-go option that allows you to call people all over the world for the price of a local call by giving you a local number to call them on. Skype to Go is a great option if you are abroad and want to avoid international calling charges when calling your friends and family. How this works: you are in another country and need to call a local number. You go to the skype app, tell Skype the number you want to call, the app provides you a new local number to call, you call that number instead and it forwards to the original number. You are then charged per call.
How much Money Does Skype Make?
Because Skype is not an independent company; they are part of Microsoft, and Microsoft does not report Skype revenues independently, it is impossible to know how much money Skype is making. The last reliable estimate was that Skype was making over $2 billion per year – but that was in 2013. Since then Skype has grown, but so has the competition.
How Do You Use Skype?
To start using Skype, you’ll need to complete these two steps first:
- Download Skype for your device
- Create your account and sign-in
Once you are signed-in to Skype, you’ll be able to make free Skype-to-Skype calls to anywhere in the world.
Watch This Video To Learn How To Use Skype
Is It Safe To Skype?
Is Skype safe? Yes and No.
Skype as an application is safe to download and use; However, users should exercise caution while operating the app with relation to choosing a secure password for their account, selecting privacy settings for their account/ public profile that protects their personal information, keeping their account up-to-date with security updates released by Microsoft/Skype, and to be aware of the potential of online fraud/ phishing.
Can You Record A Skype Call?
Yes! You are able to record Skype calls by following the steps below:
*Note: If a call is being recorded, all parties will be notified that a recording is in process.
Recording A Skype Call:
- Click the (+) icon during your Skype call
- Click “Start Recording”
- Once the call has been completed, the recording can be found in your chat history and available for download for 30 days after the call.