How WhatsApp Makes Money

One dollar at a Time and on the far side 

The short answer wont to be $1 at a time. In some countries, the app wont to value regarding $1 to download; in others, the primary year is free, however every future year prices $1 – in alternative words, WhatsApp had a subscription model. At the height underneath this model, it’s regarding 700 million users worldwide; yearly revenue is often calculable at $700 million per annum at this point. In Jan 2016, Facebook discovered in a {very} 10-Q filing that as a result of WhatsApp was monetized in “a very restricted fashion,” it’s going to not be generating meaningful revenue within the long run, hinting that the strategy would amendment. Shortly when WhatsApp associate degreenounced in an exceedingly diary post that the time of subscriptions had returned to a finish, and therefore the electronic communication app would currently be liberated to use.  There are still no ads within the app, however. “Starting this year, we’ll take a look at tools that enable you to use WhatsApp to speak with businesses and organizations that you want to hear from,” the corporate wrote at the time. The goal is to possess individuals to communicate directly with i.e. their banks, airlines etc. 
over the app, whereas the companies pick up the bill antecedently paid through subscriptions. tho’ WhatsApp’s financial statements are not public (Facebook does not break down its revenue by the company), Forbes calculable total revenue to be $5 billion and therefore the average revenue per user to be $4 by 2020. As of February 2018, WhatsApp had over one.5 billion users and sees sixty billion messages sent per day, in step with Facebook chief operating officer Mark Zuckerberg in an exceedingly this fall 2017 call. 

alternative SMS Apps 

Outside of America, wherever causing text messages is costlier, SMS apps are fashionable and have with success monetized. WeChat – the favored Chinese SMS app has ads yet as online games. 
the corporate is partially accountable for Tencent’s, that owns WeChat, $6 billion revenue within the third quarter of 2016. The app has over 846 million active users. 

specialize in Growth WhatsApp 

Whats app is adding around 1,000,000 users per day, largely in a geographic region, Bharat and Europe. With SMS apps, growth is exponential – once one person in an exceedingly group downloads and advocates victimization the app, several new users transfer the app so as to speak with the initial person. These new users then encourage alternative members of their alternative social teams to use the app. By increasing penetration, the app becomes indispensable and therefore the user base grows.

Find additional statistics at Statista Is it very regarding the cash Though? business insiders have speculated that a part of the explanation behind exploit WhatsApp was for Facebook to access user’s activity information and private data. With location sharing information, sixty billion messages sent per day, and access to users’ entire contact lists, Facebook has access to plenty of private data – all uploaded and saved on its servers. whereas Mark Zuckerberg has antecedently secure that this information won’t be wont to improve client targeting in Facebook ads, it’ll be unless the user changes the settings to not share data with Facebook. End-to-End encoding conflict WhatsApp, moreover as different electronic messaging suppliers (including Apple), are in quandary with governments around the world when it absolutely was determined that terrorists used apps to communicate before, and during, attacks. Governments and counter-terrorist act agencies needed the businesses behind these apps to share the encoding key so as to realize access to messages sent and received by the terrorists. the businesses, however, refused to oblige. This junction rectifier to WhatsApp’s adoption of end-to-end encoding, that prevents anyone, as well as WhatsApp, except the sender and receiver from gaining access to the information shared on the app. the underside Line whether or not you suspect that Facebook overpaid for WhatsApp or not, the actual fact is that the app features a growing revenue stream with additional area to grow.