![]() WhatsApp makes money through ads as well as a business platform called WhatsApp For Business API. It’s unclear how much money they have made since then.įacebook monetized WhatsApp in 2016, but only in a limited way.įacebook’s financial statements continue to be private, so it’s not possible to tell how much money any of its companies are making individually. How WhatsApp Makes Money NowĪccording to Facebook’s financial statements, WhatsApp brought in a little over $1.2 million in the first nine months of 2014. That, in turn, allowed them to tailor Facebook ads and content for WhatsApp users who also had a Facebook account. Using this data allowed Facebook to establish and track certain basic metrics associated with each user. Who owns whatsapp news update#That privacy update ensured that all data would be shared with Facebook. While this prevents anyone from reading your messages, it came with a privacy update that users had to accept to keep using the service. The same year the company announced that WhatsApp would be free, it also introduced end-to-end encryption in its messaging. The most obvious answer would be leveraging user data and focusing on user data generation. Surely, Facebook didn’t spend billions on this app just to lose money. Once again, the question on everyone’s mind was ‘how does WhatsApp make money?’ Who owns whatsapp news free#They also noted that the app would remain free from ads at that time. In 2016, Facebook announced that WhatsApp would be free to use for everyone.Īlthough many users did not pay for WhatsApp, this was still major news. He is opposed to the way Facebook manages user data and has spoken about this publicly. His departure came on the heels of the Cambridge Analytica scandal. He also disapproved of talks to switch to an ad-based model.īrian Acton also left the company in November 2017. Koum did not like the way Facebook was leveraging user data. Only a few months after the sale, Jan Koum left Facebook and WhatsApp behind. The founders disagreed with this move, as it was not the vision they had for WhatsApp. In February 2014, Facebook acquired WhatsApp for $19 billion dollars.Īt that time, the app had over 450 million active users globally.Īfter the Facebook acquisition, their revenue structure changed. It is unclear how successful this business model was. This rarely happened, however, because the service would auto-renew once the year had passed. WhatsApp offered a free subscription for the first year, with the expectation that users would pay $0.99 annually afterward. They opted for a ‘freemium’ business model, which means consumers get a great user experience for a small subscription fee. So if they were opposed to an ad-based service, what was their revenue generation strategy? The founders of WhatsApp initially did not want to include ads in their messaging service. Sequoia Capital invested another $50 million dollars two years later, when the app’s user base had grown to 200 million. They accepted the investment with the understanding that WhatsApp would remain ad-free. They were not interested in compromising the privacy of their users to generate money.ĭespite their reservations, WhatsApp’s founders accepted $8 million from Sequoia Capital in April 2011. However, the founders weren’t responsive, because they knew there would be a push to monetize the app and include ads. Investors were very interested in WhatsApp at this point. ![]() ![]() In 2011, WhatsApp made the Apple Store’s top 20 apps list. The app continued to improve and increase its user base as the years passed. In 2009, the app improved its messaging features and saw its number of users grow to 250,000. The founders were passionate about developing a service that was easily accessible. ![]() It wasn’t initially meant to be a huge money-maker. WhatsApp is an alternative to expensive international text-messaging services. Users register with their mobile phone numbers and upload their contacts.Ĭonsumers worldwide can use the app with no cost or location limitations. Who owns whatsapp news install#Many people who currently use the app wonder, ‘ how does Whatsapp make money?’Ĭommunicating via WhatsApp is easy – consumers only need to download and install the app on their smartphones. They designed the app to work on any mobile device as well as a computer. ![]() These entrepreneurs were interested in developing an instant messaging application that was both affordable and private. 6 Final Words on How Does WhatsApp Makes Money? ![]()
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