How Does Make Money Whatsapp?

Whatsapp was founded in 2009 as an alternative to expensive SMS Services by Brian Acton and John Claude. The app allows people to send pictures, videos and messages at no cost. It is also available for iPhone, Android, Blackberry, Windows Phone, Nokia and now Desktop.

Facebook Inc. bought WhatsApp for $ 19 billion in February 2014, and according to the Facebook Form 10-Q of 2014, in the nine months before September 30, 2014, WhatsApp made $ 1,289,000.
On April 30, 2018, Whatsapp Co-Founder and Director of Facebook Inc. John Cole announced the release of Facebook.

Media reports indicate that Koum decided to leave Facebook after disagreements with Facebook on the use of Facebook data and willingness to allow ads on Whats App. Coum and Brian Acton were struggling for the privacy of Whats App users for a long time. In February 2018, Whats app had 1.5 billion users and Facebook was the second largest property after Facebook. It has overtaken Facebook’s Messenger and Instagram for the third and fourth largest properties.

So how is Whats app making money? How is he going so far?

At one time, the short answer to this question was – one dollar at a time. In some countries, download the app Would have cost around $ 1 to D In others, the first year is free, but it costs $ 1 in every coming year. In other words, Whatsapp used to work on a subscription model. Under this model, there are around 700 million users worldwide, at this time annual earnings can be estimated at $ 700 million per year.

In January 2016, Facebook disclosed in 10-Q filing that since WhatsApp was monetized in “very limited fashion”, it can not generate meaningful revenue for a long time. Indicating that the strategy will change – shortly after the announcement of Whatsapp in a blog post that the era of subscription was over, and the Messaging app will now be free to use.

However, there are no ads in the app yet. The company wrote at that time, “From the beginning of this year, we will examine the tools that allow you to use WhatsApp to communicate with those businesses and organizations that you want to talk to.”
The goal is that people can develop a way to communicate directly with their bank, airlines, etc. on the app.

Although Whatsapp’s financial information is not public (Facebook never breaks its revenue and keeps Whatsapp separate), Forbes

estimates that the total revenues will be $ 5 billion and by 2020, every user average revenue is $ 4. By February 2018, Whats app had more than 1.5 billion users. According to Facebook CEO Mark Zuckerberg in Q4 2017 conference call, billions of users send 60 billion messages per day.

Other SMS Apps
 
Outside the US, where text messaging is more expensive, SMS applications are popular and are making money successfully. V-Chat’s popular Chinese SMS app also has online games as well as ads. In the third quarter of 2016, V-Chat, the owner of $ 6 billion Revenue VChat, is made. There are more than 846 million active users in the app.

Focus on development

Whatsapp is adding nearly one million users per day, mostly in Latin America, India and Europe. Once the SMS app is downloaded and if it is easy to use, then it will move quickly. When a person downloads and advocates in a social group, many new users download the app to communicate with the original person. These new users encourage their members of other social groups to use the app.
Increasing access to the market, the app becomes essential and the user gets increasing.

Is it really about money?
 
Industry insiders have speculated that Facebook’s real motive behind buying Whatsapp was a way to access user’s behavioral data and personal information.

Places data, GPS location, 60 billion messages are sent per day, and access to full contact lists of users – Facebook keeps uploading and sharing this personal information on your server. While Mark Zuckerberg had previously promised that this data will not be used to improve consumer targeting in Facebook ads, it will be as long as the user changes settings to not share information with Facebook.

End-to-End Encryption Dispute

Whats  app, as well as other messaging apps, including Apple, were fighting data sharing with governments around the world. After determining that the terrorists used to attack the app, governments and counter terrorism agencies wanted companies to share encryption keys behind these apps. However, the companies refused to accept. This sentence gave Whats App Set a chance to adopt end-to-end encryption which allows someone to access that information other than the sender and the receiver.

People in the world think Facebook has paid more for WhatsApp, but the fact is that there is only scope for the app to grow.