How Does WhatsApp Make Money? Honest Answer [Revenue Model 2021]

Whatsapp is one of the top social media platforms that most people use. According to Conversocial, nearly more than 2 billion users are using WhatsApp across 180 countries.

But most people don’t know how does WhatsApp make money? (or) how does WhatsApp earn money?

how does whatsapp make money

According to a survey, only 2.3% of people know about how does WhatsApp makes money? and the remaining 97.7% of people don’t know about how does WhatsApp makes money?

Now let’s start this article from the starting of whatsapp,

How WhatsApp Started?

WhatsApp was first founded in 2009 by Brian Acton and Jan Koum, who are former employees of Yahoo. Both are worked in Yahoo for 9 years, from 1998 to 2007.

Later they came out from Yahoo and applied to Facebook for a job, but both Jan Koum and Brian Acton got rejected by Facebook.

Later in 2009, both the founders bought an iPhone and realized that the app industry is going to be way successful in the future.

After realizing this, both started creating an app and Jan Koum named the app “WhatsApp“. In February 2009 the first version of WhatsApp was launched into the App Store.

In the beginning days, WhatsApp isn’t really a messaging app like nowadays, it is just a status updating app.

Later in June 2009, Apple launched push notifications in iPhones, so that users will get notified (or) pinged when they were not using an app.

By using this chance Brian Acton and Jan Koum introduced a new messaging feature in WhatsApp by updating WhatsApp.

WhatsApp Success Journey:

After updating WhatsApp version 2.0, they don’t turn back in their life and the WhatsApp achieved 250,000 active users within a month.

Later in 2011, WhatsApp stood in the top 20 App list in Apple’s App Store. The WhatsApp growth started and slowly the investors are also investing money in WhatsApp.

In 2013 WhatsApp gained 200 million active users with only 50 members staff. And these 50 members are spending their time fixing bugs in WhatsApp.


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Why WhatsApp Hate Advertisements?

how does WhatsApp make money

We know that most of the apps earn revenue by advertising or by monetizing their service. But WhatsApp doesn’t choose that path.

WhatsApp is an ad-free service that mostly focusing on user experience.

After reading the above sentence you will get thought that why WhatsApp created an ad-free service? Now I will tell the answer to this question

The founders of WhatsApp Brian Acton and Jan Koum hate advertisements, so they created WhatsApp as an Ad-free platform for all users.

So, WhatsApp doesn’t earn any type of revenue through advertisements or by promoting products.

Does WhatsApp Have Subscription Plans?

Some people may thought that there are some hidden subscription plans in WhatsApp. From those subscription plans WhatsApp make money.

Does really Whatsapp have hidden subscription plans?

The answer to the above question is a big NO. WhatsApp doesn’t have any monthly or yearly subscription plans to earn revenue.

Till now they don’t introduce any subscription plans in WhatsApp to earn revenue. But we don’t what’s gonna happen in future days.

Facebook Acquiring WhatsApp:

In early 2014, Facebook acquired WhatsApp for $21 billion. At that time, this is the expensive acquisition of a venture-backed company in history.

Just 3 days after Facebook announces the WhatsApp purchase, Jan Koum introduced a voice calling feature in WhatsApp which attracts more people.

In September 2017, one of the WhatsApp co-founder Brian Acton left the WhatsApp company to start a new nonprofitable group or company.

However, after Facebook bought WhatsApp, in a meanwhile, Facebook wanted to implement advertisements in WhatsApp without hurting the user experience.

How Does WhatsApp Make Money?

In early 2018, Facebook introduced WhatsApp Business API & Click to WhatsApp Ads, to earn money from WhatsApp. At present, these two are the only revenue source for Facebook from WhatsApp.

WhatsApp Business API:

While the WhatsApp Business API platform is free to use for all businesses. It was built with the small business owner in mind.

After releasing this feature some giant tech companies like Netflix, Uber, Booking.com, Wish……… are started testing this new feature for elaborating their service.

WhatsApp Business API Customers are charged per message sent. And these charges may vary depends upon location.

These business companies use WhatsApp for sending bulk messages to the customers.

The WhatsApp charges these business companies for sending messages to the customers.

Click To WhatsApp Ads:

And the second method of revenue is Click to WhatsApp Ads. At first what is Click to WhatsApp Ads?

Click to WhatsApp ads let you use Facebook’s ad platform to get people to contact you on WhatsApp.

It’s a CTA ad type that starts a WhatsApp conversation, this all can be done in WhatsApp for business app. This Click To WhatsApp Ads bit more engaging and helps businesses to grow more.

Facebook Future Plans On WhatsApp:

Facebook has so many future plans on WhatsApp regarding revenue. In the future, Facebook may introduce advertisements to normal users to increase their revenue from WhatsApp.

But till now WhatsApp doesn’t show any type of display advertisements for normal users, we can’t say anything about this issue.

Facebook may change anything in WhatsApp, but these changes may don’t hurt any user experience.

If these changes hurt user experience then Facebook may be going to face so many serious problems regarding this issue.

If user experience were disturbed then WhatsApp users count may fall.

FAQ On How Does WhatsApp Make Money?

1. How much does it cost to advertise on WhatsApp?

Ans: According to marketing land these messages roughly cost around half of $0.01 to $0.09 per message delivered.

2. Is WhatsApp going to have ads?

Ans: Currently WhatsApp doesn’t introduced any ads. But in future it may be Yes, WhatsApp may introduce ads.

3. Do WhatsApp Sell Our Data?

Ans: No, maybe Yes, maybe No. Nobody knows what’s going behind our eyes.

4. How Much Income does WhatsApp Earn Every Year?

Ans: According to Investopedia, WhatsApp earns an average of $4 billion every year.

5. Is WhatsApp a safe app?

Ans: Yes. WhatsApp has end-to-end encryption built-in, which means that texts, photos, and videos exchanged between users are encrypted.

Even WhatsApp cannot read, view, or listen to the messages sent by users.

Conclusion:

I hope you enjoyed reading this article about How Does WhatsApp Make Money? Honest Answer [Revenue Model 2021].

If we resolved your query, then in return please share this article with your loved ones. If you still have any queries about this article, then don’t stand back to ask in the comment section below.

We will try to resolve your query as soon as possible. Thanks for reading this entire article till this point.

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