WhatsApp Business Model – How WhatsApp makes money
Even if you’re not a business owner, everyone understands that the core operating principles of any business rest upon its ability to bring in consistent profit margins and revenue. Most businesses are quite obvious as it relates to the how they make money, however, in the age of increasing online commerce dominating most of the way that people interact with products and services, it can be hard to tell exactly how much money if any some of your favorite online brands and companies are making. Today we’re going to look at how WhatsApp makes money.
Features of WhatsApp:
- End-to-end Encrypted messages
- Free communication
- No-subscription required
WhatsApp is a popular messaging platform that was created in 2009 by Jan Koum and Brian Acton. WhatsApp was designed to provide users with a cost-efficient, and secure method for communicating when compared to traditional cell phone providers. If you use the platform or have seen it available for download before, you might’ve wondered how WhatsApp makes money given the fact it’s a simple messaging app.
How much money does WhatsApp actually make?
Well, the answer to that question is simple yet complex, because finding out exactly how WhatsApp makes money requires a lot of time and research. For starters, when the platform was first launched, it cost a $1 to download which made it pretty easy to see how the company made its money. During this time, the company was estimated to be making about $700 million each year because it has 700 million users worldwide.
At the peak of the app’s popularity, answering the question of “How does WhatsApp make money?” was quite simple that was until 2016 when the company was bought by Facebook when trying to find the answer became a little more difficult. Once the company was purchased by Facebook, they stated that they would monetize the platform in a “very limited” manner however, that still didn’t answer the question of exactly how WhatsApp makes money.
This question became even more important once the company announced after it’s acquisition by Facebook, that it would no longer be offering subscription services to its users. Fast forward to today, and people are still wondering how WhatsApp makes money due to the fact that there are no ads on the platform.
The plain and simple answer to how WhatsApp makes money is quite clear, like with many other companies in the same app class, WhatsApp sells private information and data collected on its servers, to third-party advertisers who then, in turn, pay them for this data. This business model is rapidly growing in popularity, given the sheer volume of new online businesses and services that are created every day.
If you use the WhatsApp platform, you may want to consider going through your privacy and data collection settings, so that you will be able to tell the app exactly what information you’re comfortable with sharing and which information you want to keep private. As the company continues to grow, and more users come aboard each day to use this premium messaging service, the CEO has stated that profit is not their main motivation yet providing its users with reliable and safe messaging services.