How Does WhatsApp Make Money? How & Why is it Free?

WhatsApp’s Money Making Method

What is WhatsApp?

You will get the answer of How does WhatsApp Make Money? But first, let’s discuss Whatsapp. It is an instant messaging application that also allows voice messaging, voice calling, video calling, image sharing, video sharing, links sharing, location sharing, and more. It is available for all kinds of android, iPhone and now you can use it on windows too.

WhatsApp is so far the only application of its type that is providing its services freely and an all-in-one platform. The time when WhatsApp was launched in the market, it was initially just an instant messaging application. But it gradually took over Skype and every other application of this type. Because WhatsApp gradually turned into a video calling application.

How Does WhatsApp Make Money? How & Why is it Free?

Who Owns Whats App?

Brian Acton and Jan Koum originally founded WhatsApp in 2009, to be served as a free messaging application. And give ease to the general public. But with time they kept on adding features that turned the status of this amazing application from just a messaging application to a video calling platform that had made our lives so easier. A few years back in 2014, the ownership of this application changed to Mark Zuckerberg who is also an owner of Facebook.

How does WhatsApp make money?

There is no surprise in this question which may come to the mind of every user that if WhatsApp gives us free services then how does WhatsApp earn? What is the benefit that WhatsApp gets from providing these services? You might also think that as WhatsApp does not show any ads then how does it earn? The answer to all these questions is simple by talking about the initial and present earning strategies of WhatsApp. So let us know about them.

Initial Earning Strategies of WhatsApp

Initially, when WhatsApp was just in the hands of Jan Koum, he doesn’t focus much on earning a larger revenue. Because his only focus was to increase the number of users to widespread the application and then earn revenue. His policy was successful and the number of WhatsApp users around the world increased gradually because of it being free. The first revenue of WhatsApp was earned by funding 250k dollars to ex-Yahoo, who were the co-founders of WhatsApp.

How Does WhatsApp Make Money? How & Why is it Free?

Present and Future Earning Strategies of WhatsApp

After two years of trying when Mark Zuckerburg finally purchased WhatsApp in 2014, things were not the same. Mark Zuckerberg not only brought feature changes in WhatsApp. But also changes in user policies which ultimately changed the revenue-generating policy of WhatsApp. Whatsapp is now an application that works together with Facebook and its main focus is to serve as a factory of user data collection.

Each user although considers his data safe but originally the facts are the opposite. Because soon after the purchase of WhatsApp by Facebook. However, every information of the user is accessible by Facebook which serves as a threat to the privacy of users. But this data sharing is beneficial for the owner as Facebook is using this data to target audiences for business purposes. Although, this way of WhatsApp making money by selling user data is not Official.

And still revolves like a rumor. It is believed that even if this is not being applied at the moment. There is no doubt that they will soon implement it in the future. And WhatsApp will be earning a huge amount of revenue. Another way is in the future WhatsApp is planning to introduce features that will allow direct business payments to banks. This will equally benefit the owner of WhatsApp as it will have contracts with associated banks. And surely they will share a decided amount of money to WhatsApp because of the benefit they will get.

Summary

As you can see, this article has provided a lot of information about the inner workings of WhatsApp. But How does WhatsApp Make Money? The answer is simple. It makes money by selling ads targeted to its users based on what they post in messages and who they interact with most often. This platform generates income for Facebook by collecting data from its users. Which allows them to find out more about customer behavior than any other company around the world. If you have questions or would like further clarification feel free to contact us.

Leave a Reply

Your email address will not be published.