Everyone with a smartphone will most likely admit to having the social messaging app on their phone. Whether its’ for business or pleasure the fact remains, that Whatsapp, has solidified itself as the go-to app for most consumers.
The messaging service is simple, easy to use, and has also forged its way into party planning, community engagements and school planning where even teachers opt for the platform as a means to communicate with parents.
While these features appear free, how does the green telephone logo’ed app really make its take home?
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WhatsApp’s parent company, Meta Platforms Inc. (formerly Facebook Inc.) has developed various strategies to monetize the platform.
WhatsApp’s revenue model has changed since the app’s debut. From its initial subscription-based approach, the app has evolved to include business services, financial transactions in several parts of the world like India, and advertising.
While the app remains free, many often wonder how it continues to thrive as a free service app.
The shortened nearest answer is WhatsApp makes money through business messaging features.
- WhatsApp business: This is a separate app designed for businesses. It offers features like business profiles, messaging tools, and analytics. Businesses can use it to communicate with customers, provide support, and promote their products or services.
- WhatsApp Business API: This is a premium service for larger businesses that want to integrate WhatsApp messaging into their existing systems. It offers advanced features like bulk messaging, chatbot integration, and API access.
- Fees for additional features: WhatsApp might introduce fees for certain premium features or services in the future, such as enhanced analytics or storage.
While WhatsApp doesn’t charge users for basic messaging, it has found a way to monetize the platform by catering to the needs of businesses and offering valuable tools for communication and marketing.
The app was founded by Brian Acton and Jan Koum in 2009 who wanted an alternative messaging service. Meta acquired WhatsApp in February of 2014 for around $22 Billion, which could be the reason for the apps continued growth.
How does it really make money?
WhatsApp mainly earns money through businesses using its platform. Businesses can pay to talk to customers directly on WhatsApp. This is called the WhatsApp Business API. Businesses pay based on how many conversations they start. WhatsApp also has ads that can link people to businesses on WhatsApp. Finally, in some places, people can use WhatsApp to send and receive money. WhatsApp takes a small fee for each money transaction.