WhatsApp! Simple but Incredible…
WhatsApp is a messaging app that is used by billions of people worldwide. how does WhatsApp make money? The founders of WhatsApp had different plans in the beginning, but the acquisition by Facebook in 2014 changed the game. In this article, we will delve into the business model of WhatsApp and how it generates revenue.
You, me, and a billion other people using this messaging app. How would be our lifestyle and where we will be standing right now without it? We are using it everyday, every minute maybe, but for zero expenses, right?!
We are not even paying even one cent to use it. And the ultimate truth is “Nothing comes for free in this world!”
Have you ever wondered how WhatsApp is doing it for absolutely nothing in return…?
The best part of WhatsApp is:
- It’s free!
- No ads!!
- No gimmicks!!!
This makes us even think deeper, why they are giving all the stunning benefits for free?
How do they actually make money?
In the beginning, they had different plans for WhatsApp. Back in 2009, Brian Acton and Jan Koum, the founders of today’s world-dominating social media, The so-called ‘WhatsApp’, decided to allow us (the users) to use their invention as a freebie only for a year. Then, an Annual Subscription Fee of $0.99 dollars (99 cents) will be charged to continue using WhatsApp.
And the coolest fact about WhatsApp is:
“Not even a single penny is spent on its advertising/marketing.
Yet, 700 million users in 5 years.”
It doesn’t feel real, right? But that’s the truth!
So, this got the attention of Facebook and they bought WhatsApp in 2014 for a sum of…
Wait, don’t be amazed!
for a stunning $19 billion dollars.
The greatest ever deal happened in history for a Venture-Capital based company.
To let you know how big this amount is, it’s more than a year’s budget for NASA that year.
The game picked its pace when Facebook used its ace card, which is
“No more charging to use WhatsApp, which attracted more users.”
Wait, hold on a second!
Facebook invested a mind-boggling $19 billion dollars, but what they are getting back?
Surely this question will pop into everyone’s mind.
There is a famous saying,
” If you are not paying for the product, you are the product.”
As WhatsApp users, you & me, we all are voluntarily giving away some personal information to Facebook. The first in the list of this information is your phone number and your contact list. They primarily use these data for better-targeted ads and for better friend suggestions.
Actually, that’s what they claim.
You might have noticed a friend or follow suggestion with the label ” In your contacts ” on Instagram & Facebook for the person you added to your contact list recently.
In conclusion,
WhatsApp is immensely contributing to Meta’s idea of world domination.
Reference: Forbes
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