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Why MyHeritage's Business Model is so successful?

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MyHeritage’s Company Overview

MyHeritage Ltd. is a rapidly evolving global discovery platform that enables individuals to discover, preserve, and share their unique family history. Founded in Israel in 2003 by Gilad Japhet, MyHeritage has grown to accommodate a user base of 92 million worldwide. The platform provides access to 9 billion historical records, including census, birth, marriage, death, and military records from 48 countries. By integrating advanced technology such as DNA testing and user-friendly tools with historical and genealogical data, MyHeritage has established a robust online ecosystem where users worldwide can research their family trees, celebrate their heritage, and connect with relatives they never knew existed. Business Model: MyHeritage operates on a freemium business model, where users can sign up and start building their family tree for free. These free users can access basic features like adding up to 250 individuals on their family tree, getting Smart Matches, and availing of the Family Tree Builder. However, the company also offers tiered subscription plans - Premium, PremiumPlus, and Data - each with escalating benefits to provide limitless family tree size, access to all family trees on the service, priority support, and advanced search features. The subscription plan varies annually, offering more expansive records and advanced features as the tier increases. Revenue Model: Primary revenue sources for MyHeritage are its paid subscriptions and sales of its DNA testing kits. Users pay a yearly subscription fee to access enhanced genealogical tools and document records. In addition to subscription revenues, MyHeritage generates income from selling its proprietary DNA testing kits, which help users uncover their ethnic origins and find new relatives. These physical products, along with the premium features, contribute significantly to the company's revenue. Furthermore, MyHeritage occasionally collaborates with other institutions to digitize and index their collections, contributing to additional income.

Country: Israel

Foundations date: 2005

Type: Private

Sector: Technology

Categories: Internet

MyHeritage’s Customer Needs

Social impact:

Life changing: heirloom, affiliation/belonging

Emotional: nostalgia, provides access, fun/entertainment

Functional: connects, informs, organizes, integrates

MyHeritage’s Related Competitors

MyHeritage’s Business Operations

Collaborative production:

Producing goods in collaboration with customers based on their input, comments, naming, and price. It represents a new form of the socioeconomic output in which enormous individuals collaborate (usually over the internet). In general, initiatives based on the commons have less rigid hierarchical structures than those found on more conventional commercial models. However, sometimes not always?commons-based enterprises are structured so that contributors are not compensated financially.


The critical resource in this business strategy is a community's intellect. Three distinct consumer groups comprise this multifaceted business model: believers, suppliers, and purchasers. First, believers join the online community platform and contribute to the production of goods by vendors. Second, buyers purchase these goods, which may be visual, aural, or literary in nature. Finally, believers may be purchasers or providers, and vice versa.

Customer data:

It primarily offers free services to users, stores their personal information, and acts as a platform for users to interact with one another. Additional value is generated by gathering and processing consumer data in advantageous ways for internal use or transfer to interested third parties. Revenue is produced by either directly selling the data to outsiders or by leveraging it for internal reasons, such as increasing the efficacy of advertising. Thus, innovative, sustainable Big Data business models are as prevalent and desired as they are elusive (i.e., data is the new oil).

Data as a Service (DaaS):

Data as a Service (DaaS) is a relative of Software as a Service in computing (SaaS). As with other members of the as a service (aaS) family, DaaS is based on the idea that the product (in this instance, data) may be delivered to the user on-demand independent of the provider's geographic or organizational isolation from the customer. Additionally, with the advent[when?] of service-oriented architecture (SOA), the platform on which the data sits has become unimportant. This progression paved the way for the relatively recent new idea of DaaS to arise.


This pattern is based on the capacity to convert current goods or services into digital versions, which have several benefits over intangible products, including increased accessibility and speed of distribution. In an ideal world, the digitalization of a product or service would occur without compromising the consumer value proposition. In other words, efficiency and multiplication achieved via digitalization do not detract from the consumer's perceived value. Being digitally sustainable encompasses all aspects of sustaining the institutional framework for developing and maintaining digital objects and resources and ensuring their long-term survival.


Freemium is the sum of the words free and premium and refers to a business strategy that provides both free and premium services. The freemium business model works by providing essential services for free and charging for enhanced or extra capabilities. This is a typical practice among many software firms, who offer imperative software for free with restricted functionality, and it is also a popular approach among game developers. While everyone is invited to play the game for free, extra lives and unique game features are accessible only once the player buys.


Subscription business models are built on the concept of providing a product or service in exchange for recurring subscription income on a monthly or annual basis. As a result, they place a higher premium on client retention than on customer acquisition. Subscription business models, in essence, concentrate on revenue generation in such a manner that a single client makes repeated payments for extended access to a product or service. Cable television, internet providers, software suppliers, websites (e.g., blogs), business solutions providers, and financial services companies utilize this approach, as do conventional newspapers, periodicals, and academic publications.

Tiered service:

Users may choose from a limited number of levels with gradually rising price points to get the product or goods that are most appropriate for their requirements. Such systems are widely used in the telecommunications industry, particularly in the areas of cellular service, digital and cable television, and broadband internet access. Users may choose from a limited number of levels with gradually rising price points to get the product or goods that are most appropriate for their requirements.

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