WhatsApp Messenger was created in 2009 by Jan Koum and Brian Acton who are ex yahoo employees. Smartphone users have been interested in WhatsApp since it was launched. WhatsApp is the most popular messaging application in the world due to some valid reasons. In particular, one of the internalized features of WhatsApp is being ads-free. WhatsApp doesn’t demand any payment from the users for downloading or usage even though it doesn’t consider advertisement. Then, how does WhatsApp make money?
How Did WhatsApp Work When It Was Found?
Here is a list of what WhatsApp was about when it was found in the first place:
- WhatsApp was completely free at first.
- There weren’t any ads in WhatsApp.
- Later, when the users increased, the expenses increased as well.
- When this is the case, WhatsApp followed a path such as this: The users were using the app for free during first year. After one year, WhatsApp took $1 from the users, and they kept using the app. WhatsApp was earning income in this wise.
- In addition, WhatsApp was making money by associating with the phone operators. The phone operators were selling the packages including WhatsApp. As a consequence, both sides were earning.
- WhatsApp earned about $100 million before it was sold to Facebook.
Facebook and Whatsapp
WhatsApp had so many users, and it is a product of a creative idea. So, Facebook sold the WhatsApp in 2017 for $19 billion, and had several reasons for this action.
Why Did Facebook Sell the WhatsApp?
The main reason that WhatsApp grew up fast is that Facebook noticed it can be an opponent against Facebook Messenger. The number of users of WhatsApp is an average of half a million per day. Facebook didn’t want a competitor to itself.
WhatsApp is no charge, according to Facebook. The labor force of WhatsApp is lower than Facebook’s. There is individuality in WhatsApp, the communication is between two people or one group. Moreover, WhatsApp doesn’t spend money on ads, people popularize by telling each other about this messaging application.
After Facebook Acquired WhatsApp
WhatsApp became a free app completely after Facebook acquired it. The paying $1 was cancelled.
There isn’t any income source for this application directly since WhatsApp doesn’t have ads, subscription fees or native advertising. However, it can make money implicitly.
How Does WhatsApp Make Money?
According to WhatsApp’s terms and conditions, if the application is sold, the personal information of users can be sold too. In other words, when Facebook acquired WhatsApp, it had all of the user information. Well, how does Facebook utilize this situation?
Facebook uses big data of WhatsApp. It has knowledge of these:
- Usage statistics of WhatsApp in the countries,
- Devices in the users,
- Frequency of use,
- The phone numbers of users,
- The number of messages that are sent between two people.
Facebook analyzes the data in WhatsApp and matches it with Facebook account. If a person has Facebook and WhatsApp, the same number is registered in both accounts, and Facebook synchronizes them. For instance, you type your friend on WhatsApp about the goods that you want to buy, you can come across the advertisement for the goods on Facebook.
Facebook and WhatsApp make money from the advertisement as a result of being in the same organization. So, WhatsApp makes money indirectly.
WhatsApp can develop some paid features like WhatsApp Business feature but nobody foresees that it is completely paid.
It avoids because users hate the advertisements, and it doesn’t want to lose its users. The creators of WhatsApp purposed an ad-free platform for just users.
WhatsApp claims that it doesn’t reach the texts and calls and it doesn’t file them.
This process is long and a little bit complicated as we explained. Facebook attacked wisely, and it is taking advantage of that. We shared the information about how does WhatsApp make money. We hope that you can see into this subject.