I had asked myself the same question yesterday. How in the world is WhatsApp earning anything at all without any ads? Is it even profitable?? Is workers at the whatsaap working for free???
I dug a little deeper, and I realized they’re making hundreds of millions of dollars. Potential revenue for WhatsApp is estimated to be $5 billion and the average revenue per user to be $4 in 2020. But how can it be possible?? Let’s see
Whatsapp was developed by Jan Koum and Brian Acton in early months of 2009 as a Status update application (hence the name Whatsapp).
Whatsapp doesn’t earn revenue through advertisements. The founders hated advertisements and created this ad-free platform focusing just on great user experience and interface.They wanted to create an instant messaging platform for the users and not for big companies to place ads. But at the same time, they had to pay their bills too. So they decided to come up with the paid version of the application where they charged an annual fee of $1 from the users.
But after that Facebook bought Whatsaap in 2014 in $19 billion. You don’t know after buying WhatsApp, Facebook has increased their net growth revenue in a multi purpose. Facebook knows all about you even you don’t know about those information of you. They have made a large database from WhatsApp. They are able to serve interest based advertisement now from using that database. How lets see…
Let me discuss about it:
- Facebook knows about your personal informations
- They know about your relationship and families.
- They know what you like or dislike
- They know what kind of activities you are doing each and every day sometimes you forget about those activities but Facebook keeps in mind.
- Even they know about your mental and emotional situation. Sometimes you ignore those things but Facebook does not, they record all these Small things in their database system.
- They know what you want and what you don’t want in your daily life.
- They know where you go, when you go and why you go they always follow you (internet location services, group activities and status updating).
- Their ad performance is the best in the world , totally 100% target and interest based ad they are selling.
Facebook has new plans for Whatsapp. The company has launched whatsapp business application which lets users build their business profile and become a verified business on WhatsApp. The verified businesses can create their business profile along with certain important links to their website or facebook page, set up autoresponders, can even link their landline numbers with Whatsapp. The Whatsapp Business application is currently free to download and use for small businesses.
To prevent ad spam, the company restricted the ability to send messages. Businesses can only send messages to people who have contacted them first, but the API will also help them programmatically send shipping confirmations, appointment reminders or event tickets to their customers. The company is already working successfully with clients like Booking.com, Wish, etc.
Now, how does WhatsApp makes money through API?
Well, WhatsApp has developed a really strategic revenue generation plan for this product.
It charges businesses for slow replies.
This means that the businesses will be able to respond to messages from users for free for up to 24 hours, but will have to pay a fee for every message sent after 24 hours. The charge is fixed but is different for different countries.
The company has also introduced a payments option (P2P payments) within the application for Indian users which will further boost its position in the market and will make it a preferred application for sending and receiving money.