Well WhatsApp was founded by Brian Acton and Jan Koum (ex employer of Yahoo). The App was specially made for alternate messaging service available in Android, iOS, windows, blackberry and now even on desktop. Facebook invested 19 billion dollar to buy WhatsApp. But the question is why Facebook invested on such a App which doesn’t rely on advertisement. I myself was quiet puzzled by this. So I tried to find out what actually WhatsApp is doing to earn money.
App fee (1$)
Well officially there is a renewal fee of 1$ in some country after 1 year. In some country like India it is free. But I heard rarely anybody paying this fee to renew account. Around 1 billion users are in touch with WhatsApp. So practically WhatsApp can have yearly revenue around 1 Billion dollar. But WhatsApp is not taking this seriously. May be to get more user and inspiring all user to use this App at free of cost.
How else can it make money?
Well as per many experts because of this App has access to billons of user details which contains our personal choice, likes, dislikes etc. May be via this WhatsApp helps Facebook to target more perfect advertisement to the user. Also WhatsApp can charge other big companies to broadcast their ads to particular customer as per their need. WhatsApp can be a source of customer service for many big brands. So this can be good way to give better customer service without even letting the world to know anything.
The founder himself told that customers don’t want ads in their messages. Also if ads are present in the messages that would certainly slow down the messaging service. So rather than publishing direct ads on the App they are targeting more ads via facebook. But after all WhatsApp don’t have any justified revenue model.
So if you have any further knowledge about this topic do write me at email@example.com.