Have you ever wonder to know how worlds no 1 messaging app WhatsApp makes money? Is Whatsapp getting profit? or they are in a loss? If WhatsApp is free then why Facebook purchased it for $19 billion? What WhatsApp does with your data? Below is the complete answer to these questions and also some facts and possible way about How WhatsApp makes money?
Real Facts Of How WhatsApp Makes Money?
WhatsApp History Infographic
Is WhatsApp Making Money? How Free App Makes Money?
The answer is partially yes. Partially yes because WhatsApp making money from some countries by getting subscription fee. So, Without ads Whatsapp making money through its subscription fees model. Countries like India using WhatsApp for free. Now the question comes here if WhatsApp generating money only from few countries than how much profit they are making every year?
Is WhatsApp Getting Profit? Or WhatsApp Facing Loss?
The answer is no, WhatsApp is making money but they are facing loss too. According to some reports, Whatsapp revenue $15M & Net Loss is 232.5M in 2014. In 2015, 16, & 17 also it got a big bucket. In 2017, its net loss increased to 400 million. Now, this reports makes big question if WhatsApp is not making any profit then why Mark Zuckerberg CEO of Facebook purchased WhatsApp in $19 Billion?
Why Mark Zuckerberg/Facebook Purchased WhatsApp For $19 Billion?
On February 2014, Facebook announced and acquired WhatsApp for more than $19 Billion. And the amount of $19 billion facebook paid $4 billion in cash, $12 billion in Facebook shares, and (advised by Morgan Stanley) an additional $3 billion in restricted stock units granted to WhatsApp’s founders, Koum and Acton. After the acquisition WhatsApp users experienced a loss of service, leading to anger across social media. As a result The acquisition caused a considerable number of users to move, or try out other message services as well. Telegram claimed to have seen 8 million additional downloads of its app.
But the question is still there that why Facebook bought Whatsapp?
Well according to some reports and bloggers facebook bought whatsapp for following future plans:
- User Growth: Yes to increase facebook users, ‘Facebook’ bought WhatsApp. Because is the first company/app who reached 419 million users in just 4 years, while Facebook only had 145 million users at its first 4 years. Therefore this can be one reason of Facebook to acquire WhatsApp.
- User Engagement: Currently WhatsApp Engagement rate is higher than the facebook as well as any other paid and free social media apps. If we talk about current user engagement time of facebook then 16-minute is the average spending time of a user in one day. Whereas WhatsApp user average spending time is much more than the Facebook.
- Advertisement: One of the main reason that why Facebook bought WhatsApp is an advertisement. Because facebook making money by displaying ads, And to display user-interest to ads facebook have to know the user interest, likes, dislikes. Therefore to understand the user’s interests and to make more profit facebook bought WhatsApp.
So after some facts about How WhatsApp Makes Money? Below is a possible way that WhatsApp is using or can use to make money.
Possible Way WhatsApp Using For Making Money?
As you can see in above image that Whatsapp is far away from other social media’s in terms of total number of users/active-users. Which makes a sense that WhatsApp will have a large number of users data about there likes, dislikes, interest etc. Any company would be happy to give millions of money to WhatsApp for their large amount database. What I am trying to say is ‘If WhatsApp is making a profit than they are doing by selling your data with companies or In future to make a profit they can sell your data to companies’. You can’t do anything if they sell your data to companies because while installing a WhatsApp you agreed with terms & conditions. And in terms & conditions, WhatsApp mentioned that they can sell your data with the Facebook family company.
So these are some facts and a possible way of How Whatsapp makes money or How WhatsApp can make money? I hope you got relevant information about this topic. What do you think Is WhatsApp making profit? Or They are facing loss? And Why Facebook Bought WhatsApp? Leave your answer in below comment box.