How whatsapp makes money | business model

today we are going to tell about business model of WhatsApp. To know this you will read article till the end.

Whatsapp massaging history

As we all know, WhatsApp is an instant messaging app. Which is available on a different mobile platform. The company was launched in February 2009 by Brian Acton and Jan Koum.

Both of these worked at the Yahoo company. After leaving the Yahoo company. He applied to Facebook for job. But both were rejected by Facebook.

The company’s founder Brian Acton hated the ad. Then you must have seen that there is no ad on WhatsApp. Brian Acton was say that any would open our app everyday to see that he saw ads. This app is made for messaging. Then will be only the message.

What was the business model of WhatsApp before Facebook acquire. And what is the business model of WhatsApp after Facebook acquire.

Business model of Whatsapp before Facebook acquire.

When WhatsApp became a company in 2009. It was initially famous, Its downloading increased rapidly. its users were growing very fast. But the founder of WhatsApp did not have such large services to continue the app without generating revenue.

After that they imposed a fee of $1/year in some countries and imposed a $1/year renewal in some countries. Theire imployees were only 40 to 50. So there was not much cost to serve the company. They used to earn well from this.

You are thinking that how much was its revenue when Facebook bought WhatsApp. When Facebook equair whatsApp, the company was able to generate revenue only $100 million in 1 year. And Facebook bought it for $19 billion and the valuation of the company at that time was only $1.5 billion.

But the WhatsApp founders were very clever. They knew that no matter how much demand, Facebook has to buy it. Because WhatsApp was the biggest fork in the way of Facebook created Messenger. Because all the time, everyone prefer WhatsApp on facebook Messenger.

Therefore, the biggest bet was kept was that WhatsApp will never be advertised. Facebook agreed to all the terms and gave 19 billion dollars to the founder of WhatsApp and Facebook bought whatsapp.

Business model of whatsapp after facebook equair

When Facebook bought WhatsApp. First then which subscription fee was completely removed. Now whatsapp is free for life time.

When we create an Facebook Id. Then we don’t pay anything to Facebook, How facebook earns money, Facebook makes money from the ad.

You must have seen that the ad appears when you run Facebook. Companies that want to show ads pay money to Facebook because Facebook has public.

how whatsapp makes money

But you are thinking that how WhatsApp makes money? You are a product in WhatsApp. What is your location, what is your age, what you send, all your things are seen. Whatsapp makes money using our data.

As I want to buy a helmet and I send photos and messages of the helmet on WhatsApp. So I see ad of the helmet on Facebook. Facebook has come to know our interest by using our data, And shows us a related ad.