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How Does Whatsapp Make Money?


WhatsApp was founded in 2009 by Brian Acton and Jan Koum as an alternative ong>toong> pricey SMS services The app allows users ong>toong> upload their contact book and message anyone who has the app installed at no cost

It is available for iPhones, Androids, Blackberries, Windows Phones, Nokia phones and, most recently, deskFacebook purchased WhatsApp in February 2014 for $19 billion, and according ong>toong> the 2014 Facebook Form 10-Q, in the nine months preceding September 30, 2014, WhatsApp generated revenue of $1,289,000 How is WhatsApp making its ong>moneyong>? The short answer used ong>toong> be $1 at a time In some countries, the app used ong>toong> cost about $1 ong>toong> download; in others, the first year is free but, each subsequent year costs $1 — in other word, WhatsApp had a subscription model At the peak under this model it has about 700 million users worldwide, yearly revenue can be estimated at $700 million per year at this time

In January, 2016 Facebook revealed in a 10-Q filing that because WhatsApp was monetized in "a very limited fashion," it may not be generating meaningful revenue in the long term, hinting that the strategy would change Shortly after WhatsApp announced in a blog post that the era of subscriptions had come on: underline;”>to an end, and the messaging app would now be free to use There are still no ads in the app, ong>howong>ever "Starting this year, we will test ong>toong>ols that allow you on: underline;”>to use WhatsApp ong>toong> communicate with businesses and organizations that you want ong>toong> hear from," the company wrote at the time The goal is ong>toong> have people communicate directly with i

e their banks, airlines etc over the app, while the businesses picks up the bill previously paid through subscriptions Though WhatsApp's financial statements isn't public Forbes estimated ons and the average revenue per user to be $4 by 2020 As of March, 2017 WhatsApp had 1

2 billion users Industry insiders have speculated that part of the rationale behind acquiring WhatsApp was for Facebook on: underline;”>to access user’s behavioral data and personal information With location sharing data, 42 billion messages sent per day, and access ong>toong> users' entire contact lists, Facebook has access to a ton of personal information – all uploaded and saved on its servers While Mark Zuckerberg has previously promised that this data won’t be used onsumer targeting in Facebook ads, it will be unless the user changes the settings ong>toong> not share information with Facebook

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