What Is WhatsApp’s Business Model

What is WhatsApp’s business model?

WhatsApp is a well-known term these days. The popular chat application was started back in 2009 by two ex-employees of Yahoo.

Brain Acton and Jan Koum.

It’s a popular chat application where user can share their thoughts and ideas through real-time chat.

It’s basically a P2P service where you can chat with your friends and family.

WhatsApp now added a lot of features.

Now you can’t even text someone, you can do even more.

You can share media files, audio, docs, live location, etc.

When the platform was initially started by these two guys it was only limited to the status updated application.

Later it was updated to the chat application.

They initially decided to provide the free service for the first year and later they will charge as small as $1.

They wanted to be ad-free platforms and simultaneously, they also needed funds so they decided to provide a little paid service.

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How is WhatsApp making money?

Here in this session, I’m gonna explain step by step how exactly WhatsApp making money.

When initially started, the revenue model was simple, you just download the application, If you’re using an Android device for the first year you’ll get it for free, and later you need to pay as little as $0.99, less than a dollar.

The first round-up was funded by five ex-employees of Yahoo and later two major round-up in 2011 and in 2013.

Later the company sold to Facebook for a humongous $19B. Yes with a B means in billion. A free messaging application sold itself.

After that, WhatsApp officially announced in 2016 that it was completely free, now you don’t need to pay a single penny, not even the yearly charges.

Here is the turn. Now the main question arises, Where the funds are coming from?

Here I’m gonna explain it in simple ways.

Most probably you’re using WhatsApp for exchanging messages with your loved ones.

Do you know Facebook knows about what you’re talking about with your friends? Yes, that’s true this is how the WhatsApp business model works.

You’re using WhatsApp on a consistent basis and you know what if you have any query in your mind or you want to purchase something.

Let’s understand it by taking an example. Suppose you want to buy a phone and you start checking the reviews on various websites and also you do the Google search for that.

You see a lot of responses over there but still, you’re not satisfied and you want to understand more.

What will you do now? Maybe you pick up your phone, open your WhatsApp, and start asking your friends and loved ones.

You need a cell phone and you want to know which one is best and under your budget. Here is the catch, Facebook exactly reads it and starts initiating and showing you ads.

Yes, it’s what we call big data.

There are over 1.5 billion users active on WhatsApp and Facebook constantly reads the stats and user interest on the basis of their interests Facebook shows ads that give more clicks more engagement on ads and more revenue to Facebook.

Companies pay for data and it’s a big industry.

You know what if you have user data then there is nothing more you need.

You can easily sell anything if you have a user’s interest-based judgment and you have the exact idea of what exactly the person in front of you looking for.

Facebook ads and other ad platforms work on click and engagement concepts.

Let’s understand it by taking an example, suppose you’re an undergraduate student and you’re looking for cheap web design courses from any institution.

You start browsing the various resources on the internet and suddenly you go to an institution and you find the courses are good but still you’re not convinced.

Now the trick is that if that institution already running the remarketing ads then most probably after a few minutes it will pop up the same institute ads on Facebook and also will provide you with the same course.

It’s what we call remarketing ads.

Actually, they know you’re looking for a website design course and you’ll definitely buy the course that’s why they showing you the same ads.

It’s basically a simple business model, It’s much more profitable because actually you know the behavior of your customer, and you can even better target now for the right product at the right time.

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WhatsApp for business:

Do you have a business and you’re looking for a platform to stay tuned with your customers?

Here is the best part for you. WhatsApp for business helps you to get more interaction with your customers.


As you know the platform is free, all you need to download the application and register your business, even you can show your products and services on the platform and make a catalog of that.

Your WhatsApp for Business is just like your digital visiting card, all you just need to share the number, and the rest of WhatsApp for Business will help you to sell your services.


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WhatsApp for Business API model:

Do you know many companies integrating the API of WhatsApp for business models into their platforms to stay more productive?

Let’s understand it by taking an example, Suppose you have a business of pizza.

You sell pizzas, which can have a number of varieties and now you need a communication medium with your customers.

You know nowadays almost everyone on WhatsApp.

You can implement the API model on your website or application and can allow your customers to stay connected with you.

Just in one click your customers can contact you on WhatsApp and can ask you about their orders and for further orders.

The thing is that the platform WhatsApp for Business API is not free, you need to pay for that. There are fixed charges for that but vary as per the country.


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Last but not least:

Here is the round of the post. Let’s understand the business model in simple words.

WhatsApp is nothing but an engaging application where you just add the contact number to your contact list and then you start texting and sending the things to that person.

WhatsApp is really an amazing application. Now it’s just free, you don’t need to pay a single penny and I think it’s for a lifetime.

Still, WhatsApp makes money because of your daily habits of texting and sharing the daily stuff with your loved ones.

WhatsApp is now a part of Facebook Inc. and the complete rights are in the hands of Facebook.

Here is the game, Facebook now using WhatsApp to make a decision behavior and show you the exact interest-based ads on their platform.


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