Before we understand how WhatsApp makes money first we should understand how was WhatsApp invented. WhatsApp was developed by Jan koum and Brain Acton
WhatsApp was initially started as status updating app and then after some time Apple introduced push notification feature in their iOS operating system.
What is the Business Model of WhatsApp?
WhatsApp is a simple and easy to use Application and initially it introduced Freemium Service Models.
What is Freemium Service Model?
Here certain software features are freely available to be used and some features require to pay certain fees like WhatsApp let users use for free for the first year and then charge 0.99$ yearly fee.
Soon Whatsapp started to grow exponentially and later was Acquired by Facebook for nearly 19 Billion $
Whatsapp for Business: Since there no ads been shown on the app whatsapp doesn't make any money from it's users, instead it makes money from small and medium businesses
In 2018, Whatsapp introduced a new app Whatsapp for Buisness where business all over the world can directly communicate with their customers easily and provide better customer service.
These Business need to pay certain fees based upon the numbers of factors and which helps whatsapp make money and also businesses to interact with their customers easily.
Whatsapp generated nearly 8.7Billions $ from Whatspp for Business alone in 2021 and this is set to increase even more in the upcoming years.
So in short Whatsapp doesn't make money from users, but rather focus on business to make money.
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