How does WhatsApp makes money?

How does WhatsApp makes money? Learn about the revenue-making process of WhatsApp through this post. 

In the first few months of 2009, Jan Koum and Brian Acton created WhatsApp, a status update application. The following update was Whatsapp 2.0. This changed it into an instant messaging app and launched the actual narrative.   

There are currently more than 1 billion users of WhatsApp worldwide. However, since the beginning, everyone has been wondering how Whatsapp generates revenue. It's because WhatsApp has long refused to charge its users and openly declares its opposition to native advertisements. Regarding the income model, developers undoubtedly have some grand intentions.

How does WhatsApp currently make money?

Right now, there are two main ways that WhatsApp generates revenue. They are WhatsApp Pay and WhatsApp for Business, respectively. Through "Click to WhatsApp ads," WhatsApp also makes money in a sideways manner. The users are directed to WhatsApp from Facebook.   

Since giving up its initial freemium business strategy, WhatsApp has avoided in-app advertising. Let's examine each of WhatsApp's two primary sources of income separately. It will make it easier for you to comprehend them.

1. WhatsApp For Business

The WhatsApp Business App offers features to let businesses establish product catalogs and serve clients on WhatsApp. They also assist them in offering customer service. Use of the Business App is free. The WhatsApp for Business API is how WhatsApp makes money off of the service.   

Large tech companies like Netflix, Uber, and 100 others have already begun testing the service just one month following the availability of the WhatsApp Business API. WhatsApp first generated revenue by charging authorized businesses for delayed responses. Users' messages could be answered free of charge by businesses for up to 24 hours. For delayed responses, they are billed a price for each message, which varies by country.   

The initial 1000 conversations can be had for free thanks to the new WhatsApp for Business API. After that, though, businesses must pay a set fee for each conversation. By country, this varies.

2. WhatsApp Pay

WhatsApp has demonstrated a strategic tendency toward monetizing the platform through businesses in recent years. Another example of the same is WhatsApp Pay. For end users, WhatsApp Pay is a free service. Businesses must nevertheless pay a fixed fee of 3.99% for each transaction. 

3. Click to WhatsApp ads that generates indirect revenue 

Click to WhatsApp ads is another way that WhatsApp generates income in addition to WhatsApp For Business and WhatsApp Pay. None of these are Facebook advertisements. Users are instead redirected from Facebook to WhatsApp by these advertisements.   

The WhatsApp app does not display these ads. Therefore, it would be wrong to entirely attribute WhatsApp's earnings to these ads. But it's one of the ways Facebook uses WhatsApp to boost its bottom line.

How much money does WhatsApp make?

Only Facebook is aware of the precise money that WhatsApp generates. The parent firm doesn't disclose the revenue distribution for the many products it operates. WhatsApp brought in a pitiful $1.28 million in revenue over the nine months that ended on September 30, 2014, according to Facebook's 2014 Form 10-Q. But that was a long time ago when WhatsApp started charging customers $1 per year after the first.

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