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How is Whatsapp making revenue?

Date: 06 Jul 2016   Posted By: Swagatika Pattanaik     Group: Computers    Category: Software   

MY question is how are mobile app sites making profit? As we do not see any kind of advertisement on whatsapp what is the benefit of running without app? Why does most app developer need millions of mobile user to download their app?
Is there any revenue making way without advertisements?

How is Whatsapp running without advertisements? What is the need of downloading an app by many mobile users?

Author: Kailash Kumar    07 Jul 2016      Member Level: Platinum     Points : 2  (Rs 2)    Voting Score: 0

WhatsApp is an SMS apps and is adding around a million users per day, mostly in Latin America, India and Europe. In case of SMS apps its growth is exponential. It spreads like the Indian mythological character 'Raktabeej'. When an individual in a social group downloads and spreads the words about using the app, then many new users download the app in order to communicate with the individual who had originally downloaded the same.
In some countries, the app costs about 1 dollar to download though in some other countries, it is free to download during the first year but, costs 1 dollar though each subsequent year.
With over 70 crore active users at present and about 10 lakh new users joining per day, yearly revenue can be estimated at 70 crore US dollars per year.

Author: Mahesh    07 Jul 2016      Member Level: Gold     Points : 3  (Rs 3)    Voting Score: 0

Whatsapp started as subscription server in the past. It used to charge 0.99$ per year for the service. This revenue model hoever didn't worked out for the company. And they recently got sold to facebook. After 2015 the revenue model is changed. Now whatsapp will display in between the messages and groups. They wish to monetize based on the type of conversion. So Whatsapp is aggregating the data and then using the display ads as a method to monetize the app. As of now the display ads are in beta and they are yet to launch for every customer out there. If the beta becomes successful then I am guessing there are going to be ads inside the whatsapp.

Author: Timmappa Kamat    09 Jul 2016      Member Level: Gold     Points : 2  (Rs 2)    Voting Score: 0

Please note that there is an error in the first response to this query. WhatsApp used to charge subscription fees before. It used to offer their services for the first year and then the user had to pay $1 per year as the subscription charges. That was how WhatsApp used to earn its revenue in the initial days of its launch.

However, the revenue model has now been done away with and the service has been made lifetime free worldwide. In order to monetise the app and the service, WhatsApp has now been planning to introduce ads within the app. Currently in beta, once implemented fully, it will the major source of income for WhatsApp.

Author: Avi    28 Jul 2016      Member Level: Gold     Points : 4  (Rs 4)    Voting Score: 0

I have been never charged post first time purchase. One of reason revenue is yes initial sell of app and due to automatic marketing whatsapp do get earning by app sell. Few other factors contribute in revenue of whatsapp.
1. Emotions and smiles - these are created some by third party they do get promoted and marketed through whatsapp so whatsapp gets paid
2. Marketing of user base group and dependency on internet allows them to earn by contracting with service providers.
3. There is no company can survive revenue. Some company disclose contact numbers and personal information to private firms for sells. If you don's sign confidentiality agreement then you might get various sellers calls.

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