Facebook purchased WhatsApp in February 2014 for approximately $19 billion and according to the 2014 Facebook Form 10-Q, in the nine months preceding September 30, 2014, WhatsApp generated revenue of $1,289,000. Did you think ever How is WhatsApp making its money?
How Does Whatsapp Generate Revenue?
There is always a prominent question baffling every user’s mind – How is Whatsapp able to make money when its services are free of cost?
Whatsapp generates its revenue through two different ways-
1) It’s Subscription Fee: Whatsapp allows it’s user to enjoy the services for free for first year. However, after that it charges $0.99 for continued service. But till date, I have not heard of a single person who has paid for this service. Interestingly, it tends to extend the free service period every time a user reaches close to the expiry date.
So this method of revenue generation that seems like the only visible revenue generation scheme is actually not generating the revenue.
Given such high number of users, the number of messages exchanged per day is also incredibly high in case of Whatsapp- peaking as high as 11 billion. With such extensive information available on Whatsapp backups, the big companies are willing to pay handsome amounts for information extraction.