Friday, September 11, 2020

How Does WhatsApp Make Money | WhatsApp Business Model

The main motive of every business to earn money by providing information, products, and services.  Almost all the company has its own short-term and long-term business plan. The company works according to its business model and increases its revenue. 

Do you know that Facebook earns around 8$ to 10$ / year from every Facebook ID just by displaying ads to them? In 2019, the annual income of Facebook has grossed about $ 80 Billion.  

How Does WhatsApp Earn Money
Facebook's business model is to connect people to each other and display ads to them according to their interests, and liking, and earn money from promoting other businesses or products.  

The business model of other popular online platforms is similar to Facebook such as – Linkedin, Instagram, Quora, Youtube, Snapchat, etc. Most of the online platforms earn money directly from visitors by providing premium services which named are – Amazon Prime, Hotstar Premium, Hulu, Netflix, and many more.

The Secret Business Model of WhatsApp

Before Feb 2016, WhatsApp earned money from Paid Subscription. But, WhatsApp becomes completely free for every person. The question arises that Whatsapp neither takes money from its users nor shows ads then how it earns money. 

It is easier to run the WhatsApp applications but it is more complex to understand its business model. In this article, we will know the business model of WhatsApp that is mentioned below – 

Revenue by App Downloading

You may be surprised to know that whenever the user downloads an app from App Store like as – Play Store, 9Apps, Apptoide, etc. The owner of that App gets about $ 1 per download. 

So, WhatsApp is also an app, it gets an average of $ 1 per download which may vary from country to country. This is the Evergreen Business Model of WhatsApp from which this app still earns very little but revenue.

By WhatsApp Business

In Feb 2018, WhatsApp (WA) launched a special app for small traders or businesses named WhatsApp Business. With the help of this app, small businesses can directly connect with their customers through WhatsApp and they can grow their business.

It is completely free, and WhatsApp company is not making any charge from it yet, but it is expected that this application will prove to be a trump card for the company in future.

By Sharing Data

The Facebook company bought WhatsApp for a huge amount of around 19 Billion dollars. It is believed that the biggest reason behind buying WhatsApp (WA) by Facebook - Its spread across the world user Network and giant Database.

Have you noticed that whenever we create a Facebook Account with our WhatsApp Number, then all our WhatsApp contacts come in it – Add Friend suggestion and possibly Facebook also does this based on your WhatsApp (WA) data.

Note- Facebook has never confirmed that it makes money by sharing WhatsApp data on Facebook or Instagram platforms.

Facebook starts showing ads according to your needs and interest on the Facebook ID that is created from your WhatsApp number, in this way, it earns more money.

Facebook Organization does not reveal the annual revenue of WhatsApp separately but it reveals the yearly earnings of Facebook, Instagram, and WhatsApp trio together.

History of Most Popular Social Media Platform – WhatsApp

Brian Acton and Jan Kaum, who once worked in the popular search engine Yahoo.  In November 2009, they created the world's most popular social media platform named is WhatsApp.

Firstly, it is launched in Apple’s App Store, Facebook founder ‘Mark Zuckerberg’ said in one of his interviews that one of the biggest reasons behind buying WhatsApp around 19 Billion Dollars is – It is a very good user engagement application and the user more like spending lots of time every day after the Facebook application.


After providing a much better service WhatsApp has not been able to earn as much it deserves. However, it has a great business strategy for the future and it can easily beat any big social media platform in terms of revenue.

In this informative blog post, we have discussed the business model of WhatsApp – how WhatsApp make money without placing any ads. I hope you like this article. if you have any questions related to this article. Please let me know in the comment box, I will try to resolve your query as soon as possible.