Now Is The Time For You To Know The Truth About Whatsapp Business Model.

Hello guys,

In today's post, we will discuss the business model of WhatsApp. People who use WhatsApp may have asked themselves once in their life - How does WhatsApp make money even when it does not run any advertisements on its platform? If you too wanted to know about it then read this article completely and gain some information which you are proud to be known when someone asks you about it.

Let's start,

Also Read: Digital Marketing Will Make You Tons Of Cash. Here's How!

It was the time of 2009 when two Yahoo employees named Brian Acton and Jan Koun left their job and after that, they were rejected to be an employee of Facebook. Then they decided to make an app which will be used as a status maker app. At that time there was no facility for messaging but people used to have telephones for contacting each other. So they updated it and launch the feature of messaging in 2009. It becomes so much popular in a very less time that there was only one competitor left in the competition who gives messaging feature named BBM-Blackberry's Messanger. But the problem was that it works only on Blackberry Mobile, but WhatsApp works on all mobiles. So, people started using it and taking advantage of its messaging feature for free.

It got more than two hundred thousand downloads very fast and got funding from many investors, WhatsApp got its organic growth and didn't do any marketing.
In the next two years, it comes in the top 10 apps on Google Play Store.
It becomes very popular in European, Asian and African Countries.

There were low expenses for WhatsApp because of no marketing but the only expenses were of sending registration messages and OTP because it was costly at that time.

So they started charging $0.99/year. After doing this there was no negative effect of it on its users and in 2011 it was a top application on the google play store. In the next 3 years, it becomes a profitable company.

It become a competitor of Facebook Messenger so Mark Zuckerberg decided to buy it and the deal was closed in February 2014 for $14Billion.

In January 2016, it becomes free to use and the charge which was taken from users to use it was removed which was $0.99/year.

The founders of WhatsApp were in the company till September 2017 but after that, they resigned because of the decision of Mark of using the data of users.

The founders, Brian Acton and Jan Koun founded "Signal" App , this is messaging app and become popular, in this the data of user is 100% safe and this is a non-profitable company.

Business Model:2018

In 2018, Whatsapp launched Whatsapp Business. It is free to use the app. In this app, a small or a big businessman can easily create a business account on WhatsApp Business and show their items/products in the catalogue area. It provides features like quick replies, setting the work hours of a business and many more. One can easily share/post his products or catalogues on FaceBook or on any site. This helps to bring a lot of active users daily to FaceBook with a free promotion.

Business API (Application Programming Interface):-

It gives different services like an automatic reply, shipping confirmation, event ticket selling and many more.

In this system, the profile is created by a businessman, if anyone replies within 24 hours then it was free but if it takes time more than 24 hours then it will be charged. The charges vary from country to country, in India the charges are ₹0.33/250K messages.

It is used by different companies that deal with millions of people like Make My Trip(MMT), Uber, Singapore Airlines etc.

Whatsapp Payment:- Now they launched payment by WhatsApp.

It is free to use for normal user but it charges 3.99%/ transection for business user. But it doesn't succeed in India so much because of UPI, because it charges very low as compare to whatsapp.

Now they are planning to launch an ads system on WhatsApp status for more earning.

According to Forbes WhatsApp is earning $4-$12 / user.

Whatsapp Commerce:- In April 2020 Jio deals with Whatsapp for $5.7Billion For JioMart Whatsapp payment will be used for transactions.

Now we can say that Whatsapp is earning and in future, it earns from:-

Payments+Ads +Mart(for buying and selling products)

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