How does Whatsapp make money?

What makes it worth $19 Billion?

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Prologue

We have only one over-the-top instant messaging app today ‘WHATSAPP’ being Friendliest messaging app for effective communication connecting the world. Originally founded by Brian Acton & Jan Koum both being ex-workers of Yahoo! Both buddies are not into following traditional ways of generating revenues by selling ads. Jan Koum on WhatsApp blog stated: “No one wakes up excited to see more advertising, no one goes to sleep thinking about the ads they’ll see tomorrow.” So What is the mystery behind WhatsApp making money??
Advertising has us chasing cars and clothes; working jobs we hate so we can buy shit we don’t need— Tyler Durdan
Whatsapp unlike other application is free for download and do not sell other products like emojis, wallpapers or other things as the clash of clans or other apps do. They provide one year of free subscription service with a renewal charge of 99 cents per user per year. But recent update and post at forbes.com confirmed that WhatsApp removed the renewal charges of $0.99 and now it’s completely free of cost!! That’s cool & weird!! If they don’t sell ads & don’t charge from users how come they feed their children??

Fact-Check!!

It’s time to beware!! When you do not pay for a product, it is you who is the product!!
Tangled clues suggest that they bring in bucks from us! Their happily satisfied customers!
The Recent update was made in terms and conditions of WhatsApp that they may sell data to Facebook and this quote was highly criticized by the users. We all know Facebook bought WhatsApp at $19 billion when Whatsapp’s yearly revenue was around $10.21 Million only. Everyone wonders what Mr. Mark’s strategy is behind this high bid. Let’s dig it deep….. To the theory behind WhatsApp making money…

  • Whatsapp has around 315 billion users & 100 new users register themselves on WhatsApp every day to make the largest community.
  • Whatsapp proved themselves to be the best of customer satisfaction with their no ad policies focusing entirely on growth & establishing their goodwill amongst other apps
  • Whatsapp being the toughest competitor of Facebook now comes under the same tent.
  • Whatsapp by adding new tools has almost eaten other revenues like file sharing replaced Gmail; voice calling replaced telecom providers revenue; video calling replaced Skype, Viber, etc; instant messaging & multimedia messaging replaced traditional SMS & MMS.

Whatsapp also quoted on a recent blog that they now work on testing the business tools for the companies. Say when a hoax transaction is being made your bank will inform you via WhatsApp

Presumptions

Mr. Zuckerberg has to ways now to generate his profit. One is being analytical & other being the futuristic way.

The first one is simple but bit unethical. As millions of users exchange personal messaging & data, this data is first sent to the WhatsApp server where it is sorted & managed by a team of 50 engineers & sent to the receiver. Then the processed data along with a customized designed database is used to analyze and predict personal behavior, likes, dislikes & interests which then is used to predict the choice of ads to be displayed on a person’s Facebook page. Being WhatsApp an agency that helps Facebook to sell ads.
The second one is just an assumption that may or may not be followed by the owners and is based on the author’s thought process. The futuristic process that WhatsApp being free of cost is focusing on growth so they can use it for future earnings. Let’s imagine it as an example. Say Mr. Narendra Modi called the owner Mr. Mark to quote important information via a broadcast message sent by the WhatsApp team to every user of the WhatsApp community. And Mr. Modi will, of course, pay well for this job to be done. Hence huge revenue can be generated.

Epilogue

Whatever be the ways of WhatsApp making money…. Or strategies Mr. Zuckerberg have…. Till then we can enjoy the free service of WhatsApp just as free vitamin D of sunlight!! I know that was the lame one.. 😀
Well, stay connected to us (not on WhatsApp :p) on youtube, Facebook, and Instagram!!

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Shruti identifies herself as Atelophobic trying her best to procrastinate work rather than surrendering lousy gibberish. Apart from contributing her precious tech wisdom, you'll find her munching on anything and everything.

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