how whatsapp earn money




Whatsapp messenger is a most popular instant messaging application across the world. It is now free all around, and it runs on every operating system. It has been growing exponentially and marked Over one billion satisfied user base which makes them elephant of the social networking. The secrets behind the grand success of Whatsapp are the time when it was launched because there was a hidden need of reliable instant messaging on a mobile platform and strategic planning for the growth. Before going to deep into how WhatsApp earn money, let’s have a look at brief history.


Whatsapp Inc. was founded by two former employees of Yahoo Inc. who also rejected by facebook and twitter, Brian Acton and Jan Koum in 2009. Initially, it developed for iPhone and Blackberry users, and gradually it came to every mobile platform. The invaluable contributions of around 50 guys achieved a vast scale of operation for the Whatsapp. Initially, it was not so successful, but Apple Inc. was the creator of a backbone of Whatsapp. Apple had introduced a push notification feature which allows users to get the notifications without opening an app. It was the game changer for the entire team of Whatsapp, and today it is invulnerable. Since the beginning, the team has been enlarging the features to perpetuate charm of Whatsapp.

how whatsapp earn money
Facebook acquired WhatsApp for whopping $19 billion.


On 19th February 2014, Facebook officially announced that it would buy Whatsapp in $19 billion (around Rs. 1,25,000 Cr). When  Facebook acquire a Whatsapp at such a whopping price, many pundits of industry believed that Facebook decision is not a bold but in reality, it was a bold decision indeed. Most obvious reason behind the acquisition was that if competitors grabbed it, it would be a threat on Facebook regarding the global domination of social networking. The saturation point for Facebook was not so far, and with millions of users base, Whatsapp was in one on one competition with the Facebook messenger. Hence, there would be a crisis of irrelevancy for Facebook. The acquisition was not a motivational but hygiene for Facebook.


People are intrigued by the question how Whatsapp earn money. All the geniuses of Whatsapp have focused on enlarging the users base without keeping in mind the revenues and profits. Till today, Whatsapp has not a firm way to generate the revenue. So, it will be very crucial for Facebook to construct a sublime revenue model for the Whatsapp. The complications in front of the Facebook that Whatsapp bounded by its own norms that they will neither give advertisement nor sell the profiles to enterprises.



In the beginning, Whatsapp charged one dollar as a subscription fee for the one year in many developed countries while it had never charged in developing countries like India, China, Brazil. On 18th January 2016, Whatsapp announced through an official blog that they would drop subscription fees. 


“Advertising has us chasing cars and clothes, working jobs we hate so we can buy shit we don’t need.”
– Tyler Durden, Fight Club

The philosophy of WhatsApp founders regarding the advertisement is somewhat antithetical. They do not want advertisement as a prime source of revenue, and for that, they have even promised that Whatsapp would never have ads even after being bought by Facebook. The advertisement doesn’t make anyone’s life better.

In its official blog of 18th June 2012, Whatsapp indicated,  “No one wakes up excited to see more advertising, no one goes to sleep thinking about the ads they’ll see tomorrow. We know people go to sleep excited about who they chatted with that day (and disappointed about who they didn’t). We want WhatsApp to be the product that keeps you awake… and that you reach for in the morning. No one jumps up from a nap and runs to see an advertisement.”


Many pundits believe that through Whatsapp, Facebook has now access to profiles of the billion users but it is not true. WhatsApp conversations are the end to end encrypted which means conversation on WhatsApp is known to the only sender and receiver even WhatsApp could have access to it. They are not attentive to store a little piece of information about you. So, the speculation is baseless and incorrect that Whatsapp shares the profile with Facebook to get more accurate data regarding the behavior of users.


“WhatsApp for Business is all about small and medium businesses, where you have a small employee count and have a large customer count, and the goals are very different,” Brian Acton, co-founder of WhatsApp, recently said in an interview.

In order to make Whatsapp a money making business, Facebook is working on ‘Whatsapp for business.’ It will be used to circulate a commercial messages to communicate with customer or employees. For example, It will help a small grocery store owner to contact his customer regarding any query if there. Facebook will launch a separate application for ‘Whatsapp for business.’ Initially, due to having the highest number of users in India, they will target India for testing.


Whatsapp will enter into the digital payment segment in India soon.

According to The Ken Reports, Whatsapp is planning to enter into digital transaction segment in India. It is an integration of WhatsApp with unified payment interface platform for peer to peer transfer of money. It will allow users to send or receive money directly through the bank account without having an E-wallet. Whatsapp will launch services for the same in the second quarter of the year. Now it is up to the Facebook that how they will make service a lucrative deal for Whatsapp.


The importance of the personal or professional communication has been growing rapidly. Whatsapp is an outstanding mobile phone instant messaging application for the communication. Having a more than One billion users indicates that Whatsapp has tremendous potential to earn a handsome amount of revenue. Apart from the conventional source of generating the revenue, Facebook has to come with some groundbreaking theory which must be futuristic and able to leverage the way people communicate with each other.


Even after the acquisition by facebook, Whatsapp is autonomous firm where it has to focus on growth only. Whatsapp has a greater global reach than any other social network site. At the same time Facebook has the finest opportunity to leverage global reach of the Whatsapp. Whatsapp traces the contacts and location of the users while both are essential in data mining for the facebook to create as accurate as possible ads on facebook. In exchange for contact list and location, Facebook provides financial and technical assistance to Whatsapp. Recently, there was a change in the privacy policy of the Whatsapp and now Whatsapp is sharing data with the Facebook.


Integration of whatsapp with  ERP

After the 1990s Information Technology revolution, ERP (Enterprise Resource Planning) has been growing rapidly not only in big companies but for small businesses as well. ERP helps companies to integrate its all the department very efficiently. ERP entirely based on the software while the function of the software depends on the inputs. Whatsapp has quite potential to play its game over here. Whatsapp has to build templates which preloaded with the required set of details. Instead of messages, one has to make communication by sending templates.

For example, Sales Manager who controls the ten subordinates across the given territory. All the subordinates have to do reporting through e-mail or call. They have to communicate the order which got from the dealer or distributor and solve the query of customers if any, and so on. All the time they have to use either E-mail or voice chat. Here is the game for Whatsapp. Now the sturdy proposition of Whatsapp for business makes activity precisely quick and facile. If Whatsapp makes templates which designed to support sales team like Performa of order details, expense details of touring, generic points which have to consider in reporting and so on. Through templates, sale executive constantly in touch with its sale manager. He just needs to type price and quantity of the product and send to sale department which further communicates the same with concerning department. Reporting will be handy by just sending the pre-designed message which already includes every required detail. Customer will contact supplier through Whatsapp for its own betterment. So quite essential communication will be handy from customer order to the sales department to production or purchase department.


Apple, Google, and Amazon have separately developed a technology which makes your home a smart. This is nothing but the one sort of integration of gadgets with the smartphone or the central server device. All the gadgets control by the voice like ‘ok google’ or ‘Siri.’ It would not be possible to control the gadget if you are not at home but it is possible if it would be controlled by the messages. Suppose Main gadget is capable enough to recognize the command through message then if you are on the way and you want to start the AC of your room, you just need to send the Whatsapp message to the main gadget which will start your AC.The opportunity for the Whatsapp are lies in the future, and it is huge. To avail those, Whatsapp has to come up with some disruptive ideas, unlike other IT products.

Whatsapp will no longer be only an instant messaging application. It has lot many more potential. Opportunity for the Whatsapp are lies in the future, and it is huge. To avail those, Whatsapp has to come up with some disruptive ideas, unlike other IT products.

Also Read: Top Emerging Brands of India



Leave a Reply