Is WordPress Really Free? An Expert Look at the Costs and Business Behind WordPress

As a web developer with over 15 years of experience building websites, I‘ve seen the WordPress open source project grow from a simple blogging platform into the world‘s most popular website builder.

WordPress now powers over 43% of all websites – that‘s over 417 million sites! With numbers like that, it‘s no wonder people wonder…is WordPress really free to use?

In this insider‘s guide, I‘ll break down the real costs of running a WordPress site, who owns it, how people make money from WordPress, licensing specifics, and address common questions people have about WordPress and money from an expert perspective.

What Does "Free" Mean for Open Source Software Like WordPress?

When we say WordPress is free, what do we mean exactly?

WordPress is free in the sense that the source code is openly available for anyone to freely use, modify, and distribute. You can download and install the WordPress software on your own web server without paying anything.

However, free does not mean that WordPress is public domain or copyright-free. The source code is released under the GPL (General Public License) which gives users liberty over usage, while enforcing that derivative works must also be kept open source.

So WordPress is free in terms of freedom over usage, rather than being at no monetary cost. There are real expenses involved with running a live WordPress site online, which I‘ll explain next.

The Costs of Running a WordPress Website

While the WordPress software itself is free to use, you‘ll need a hosting provider and a domain name to put your WordPress site online. This is where actual costs come in:

• Web Hosting: To display your WordPress site publicly on the internet, you need web hosting. Shared hosting plans typically start around $7.99 per month.

• Domain Name: A custom domain name (yourwebsite.com) will cost around $14 per year.

• Premium Plugins and Themes (optional): Extend WordPress‘ design and functionality with premium, paid plugins and themes. Cost varies based on each item.

My recommendation for new users is to use Bluehost, an official WordPress recommended hosting provider. The total cost to start a website with Bluehost is only $2.75 per month – you get a free domain for 1 year and over 60% off hosting.

For a limited time, readers can use this exclusive Bluehost discount link to claim this low price deal to start a new WordPress site on a budget.

In summary – the absolute requirements are web hosting and a domain to put WordPress online. Any other expenses like premium plugins, writers, developers etc. are optional.

With some effort, it‘s possible to start a functional WordPress site without spending beyond hosting and domain registration.

Who Exactly Owns and Runs the WordPress Project?

As an open source project, WordPress is built and maintained by a worldwide community of contributors. There is no single person or company that owns WordPress outright.

The project itself is led by a core team of lead developers who make executive decisions about features and release cycles. New leaders emerge over time based on merit and involvement within the open source WordPress community.

This communal aspect of development and lack of corporate ownership is a major reason why WordPress has not been commercialized. The ideals of the open source movement center around liberty and transparency rather than profit.

How Do People Make Money with WordPress?

While WordPress itself is free open source software, thousands of developers have built highly profitable businesses around WordPress. Here are some of the most popular ways people make money with WordPress:

• Managed Hosting Companies like WPEngine, SiteGround, Bluehost provide optimized WordPress hosting services. This is a billion dollar market.

• Theme Companies like ElegantThemes, StudioPress, ThemeForest sell premium WordPress themes and page builders. Many theme shops generate over $10 million in annual revenue.

• Plugin Developers create premium plugins like OptinMonster, WPForms, MonsterInsights that are used on millions of sites. Top plugin companies easily clear over $1 million in sales.

• Agencies build custom WordPress sites, web apps, plugins, themes for clients. Freelancers offer services like development, design, writing, SEO, and more. This is a multi-billion dollar industry according to Post Status.

• Online Course Creators sell WordPress tutorials on platforms like Udemy. Popular teachers easily make over $500,000 per year from their courses.

• Bloggers monetize their sites through affiliate marketing, display ads, digital products, donations, memberships. Many professional bloggers make $50,000 – $100,000 per year from WordPress.

The commercial ecosystem around WordPress is thriving at over $6 billion in market size, even though the core software remains free and open source.

WordPress Licensing and Ownership Explained

There is some confusion around WordPress licensing, trademarks, and what parts are copyrighted. Let‘s clear this up:

• WordPress Core Code – Released under GPL

• Themes – Copyrighted but usually GPL licensed, with some exceptions

• Plugins – Must be released under GPL

• Your Content – You retain full copyright

• WordPress Name and Logos – Trademarked by WordPress Foundation

Clearly understanding these basics is important to avoid misusing WordPress and any content published on it. I would advise speaking to a lawyer for legal advice on specific copyright and licensing issues.

WordPress Code Is Under GPL License

The core WordPress software and code is released under the GPL open source license. This means anyone can freely use, modify, and distribute that code. However, any derivative works must also be released under the GPL.

Themes Are Usually Under GPL Too

WordPress themes contain a mixture of code and visual elements. There has been extensive debate around whether themes should adopt the GPL or not.

Most reputable theme developers release their themes under GPL, even if being sold commercially. However, there are some exceptions with certain proprietary commercial themes refusing to adopt the GPL.

This has led to heated objections within the WordPress community. The overarching opinion is that themes do extensive functionality extending and should adopt the GPL.

Plugins Inherit the GPL License

WordPress plugins are considered derivative works and inherit the GPL license. They must be released under GPL even if being sold commercially. There are occasional cases of developers trying to circumvent this that get rejected.

You Retain Copyright on Your Content

Any blog posts, images, videos published on your self-hosted WordPress site belong to you. Just because your site runs on WordPress does not mean your content is GPL licensed. You retain full copyright control of your own creative work.

WordPress Name and Logos Are Trademarked

The WordPress name, logos, and related branding like WordCamp are trademarked and owned by the WordPress Foundation. Proper attribution must always be given. This includes not using "WordPress" in domain names.

What‘s the Total Cost of Running a WordPress Site?

Let‘s recap the real expenses involved with running a live WordPress site online:

• One-time domain name purchase – $14/year
• Web hosting starting at $7.99/month
• Optional premium themes/plugins (variable cost)

The Bluehost discount makes starting a site affordable at $2.75/month total.

This means you can launch a basic WordPress site for less than $20 in the first year, without any premium plugins or themes. The annual renewal cost will be around $95 ($7.99 hosting + $14 domain).

Of course, you may opt for added features like:

• Hiring a writer for blog content
• Licensing a custom theme
• Paying for SEO or marketing
• Additional storage and faster hosting

These services will increase your costs, but they are not absolutely mandatory. With some diligent DIY effort, you can launch and run a WordPress site very affordably on a budget.

We have a detailed guide on How Much Does it Cost to Build a WordPress Website with more specifics on budgeting and potential expenses.

WordPress vs WordPress.com – What‘s the Difference?

Earlier I mentioned there are some limitations with WordPress.com sites. What does this refer to exactly?

WordPress.org is the free open source WordPress software that you can download and install on your own hosting. This gives you unrestricted access to all features and total ownership of your site.

Whereas WordPress.com is a restricted blogging platform hosted and run by Automattic (the company behind WordPress). Some key differences:

• WordPress.com sites have advertisements that you cannot remove unless you pay for an upgrade.

• Customization is limited on free WordPress.com sites – you can‘t edit code or use custom themes/plugins.

• WordPress.com limits or disables certain features like eCommerce until you upgrade to a paid business plan.

• Your WordPress.com site can be taken down at any time if deemed in violation of their terms. You do not have full ownership of sites created on their platform.

So in summary, WordPress.com is not the same as freely hosted WordPress.org sites. There are major limitations on free WordPress.com sites in terms of control, customization, monetization, and ownership.

Frequently Asked Questions About WordPress and Money

Here are answers to some common questions people have around whether WordPress costs money and who owns it:

Does WordPress take any percentage of the money you make?

No, WordPress does not charge you or take any percentage of income you generate through your self-hosted site. You have full ownership of monetization like ads, affiliate links, products, donations, etc.

Is the free version of WordPress limited or restricted?

The open source WordPress software from WordPress.org gives you full access with no inherent limitations or restrictions. The only limits may come from your web host, like storage space or bandwidth allotments.

Can I accept payments and donations on WordPress?

Yes absolutely! You can add payment options like Stripe or PayPal to your WordPress site to accept payments, donations, membership fees. Easy-to-use plugins like WPForms make this quick to set up.

Who owns the content published on my WordPress site?

You fully own the copyright on any original content like blog posts, images, videos published on your self-hosted WordPress site. WordPress has no claim or ownership of your creative work.

Can I make money from WordPress?

You can absolutely monetize a WordPress site in countless ways through affiliate marketing, online courses, digital services, ads, and more. There are endless options to profit from WordPress.

I hope this comprehensive expert guide has clarified what WordPress free really means, who runs it, the true costs of managing a site, and specifics around licensing.

While the WordPress software is open source and freely available, there are reasonable costs like hosting and a domain to publish your site online. With some diligent effort, you can keep these expenses low.

Let me know if you have any other questions in the comments! I‘m happy to help answer them drawing from my decade and a half working with WordPress.