How Does WhatsApp Make Money?
WhatsApp is the world’s most popular messaging app, with over 1.5 billion monthly active users. It is incredibly popular, not to mention free to use. So, it begs the question – how does WhatsApp make money?
In this article, we’ll explore the various ways in which WhatsApp makes money, as well as how these tactics can be applied to your own business endeavors. Let’s get started.
What is WhatsApp?
WhatsApp is a mobile and web messaging service, owned by Facebook. It allows users to send text messages, photos, videos, audio files, and location data. It was founded in 2009 and is now one of the most used messaging apps worldwide.
How Does WhatsApp Make Money?
WhatsApp makes money in a variety of ways, all of which involve leveraging its large user base.
- Ads
WhatsApp does not currently run ads on its app, in part because its founder, Jan Koum, opposed advertising at the time of its founding. Despite this, it’s still possible to make money on WhatsApp through ads. Brands can pay popular influencers to feature their products in their messaging campaigns.
- Businesses Subscriptions
WhatsApp recently rolled out its own subscription service, called “WhatsApp Business.” This service allows businesses to create their own WhatsApp Business accounts and manage customer engagement much like any other messaging platform.
WhatsApp charges businesses a monthly subscription fee to use this service. The fee ranges from $0.99 per month for micro businesses, to $9.99 for large businesses.
- Data-Sharing
WhatsApp has become increasingly reliant on sharing user data with its parent company, Facebook. It’s been suggested that this is one of the major ways in which WhatsApp makes money.
This data sharing is done mainly with regards to targeted advertising. Facebook uses this data to analyze user behavior and preferences, then serve them more relevant ads.
- Payment Services
WhatsApp is rolling out its own payment service in select markets. The service is called “WhatsApp Payments” and allows users to send money directly to other users in the same country. The service is not available everywhere yet, but is expected to become increasingly popular over time.
- In-App Purchases
WhatsApp also monetizes through in-app purchases. These can range from sticker packs and themes, to themes and gift cards. In-app purchases make up a small portion of WhatsApp’s total revenue, but it’s still a viable revenue source.
How to Use These Strategies in Your Own Business
WhatsApp’s success is built upon a combination of smart business strategies. Here’s how you can apply some of these same tactics to your own business endeavors.
- Start Small
WhatsApp started off as a small messaging app, and as its user base grew, more features were added. This allowed them to steadily grow their business and build upon their successes. Starting small is key – by rolling out features one at a time, you can make sure that each feature is successful before moving onto the next.
- Leverage Social Media
WhatsApp leveraged its popularity to grow its user base and draw attention to its app. By partnering with influencers and utilizing social media, you can spread the word about your business and create more awareness.
- Offer a Versatile Service
WhatsApp is incredibly versatile – it offers services such as messaging, payments, and video calling. This makes it incredibly useful and attractive to users. Try to create a service that offers a variety of features, and make sure the user experience is seamless.
- Focus on Security
WhatsApp focuses heavily on security and privacy, which has earned it users’ trust. Make sure you prioritize security when developing your own business endeavors – after all, if customers don’t trust you, they won’t use your product.
WhatsApp is the world’s most popular messaging app, and it stands as an exemplar of how to successfully monetize a business venture. By leveraging its user base and introducing various services, WhatsApp has been able to generate a steady stream of income.
By taking the strategies outlined in this article, you can apply some of these same tactics to your own business. Start small, leverage social media, create a versatile service, and ensure your customers feel secure when using your product.
Good luck!