How does WhasApp make money

How does Whatsapp make money?

Whatsapp has been around for ten years. The messenger service inspires millions of people and is one of the most successful apps of all. In 2015, Facebook finally took over Whatsapp for a gigantic $ 22 billion. This currently corresponds to three times the market capitalization of z. B. the German Lufthansa. That is why the takeover met with lively criticism from all areas at the time. The sum was said to be too high. So now, after four years, take a look at Whatsapp and the question of how does Whatsapp make money? Because this question is still not that easy to answer. Because the investment for Facebook has apparently not yet paid off ...

 

Whatsapp and sales?

Anyone who has been using the app for a long time may still know that Whatsapp cost 99 cents a year. That was enough for the company to reasonably think about the costs. Because even then, the app had well over 200 million users. The user growth can be seen in comparison to Facebook itself:


But what about the Whatsapp sales. Well, it still doesn't exist. Whatsapp's revenue is $ 0. Because the annual fee has long been abolished ...

How does Whatsapp make money for Facebook?

So why does Facebook (currently) not want to make money with WhatsApp? This question is easy to answer. There are mainly two reasons:

  • User growth. The service is now used by over 1.5 billion people and the growth does not seem to end for a long time. Costs or advertising would slow this growth.
  • The data. The possibility of collecting data from users, such as contacts or calls, is still possible for Facebook and is also practiced. So also the criticism of many privacy advocates.

Whatsapp currently only serves as a data octopus. In Germany this is limited by the data protection law, but Germany is only a small market for Whatsapp anyway. User growth is so important for Facebook because it has long been toying with measures to generate sales on Whatsapp. Both advertisements and payment services directly via the messenger service have already been discussed.

Whatsapp is on most smartphones ...

It would be only logical to introduce such a thing exactly when user growth is slowly flattening out and users are already “dependent” on the service. Then the app can be monetized most profitably. It is still difficult to predict when this will be the case.

 

Goodbye data protection?

Whatsapp was sold to Facebook in 2015. The founders Acton and Koum became billionaires. You'd think they'd be overjoyed with the sale, but things turned out differently. Acton raised the mood against Facebook three years after the takeover. He tweeted the following sentence:

It is time. #deletefacebook

He made it clear that with the sale of his company he was also selling the privacy of the users and thus made clear what Facebook uses the messenger service for ...

 

Whatsapp future prospects

There are some directions that Facebook is already taking with the messenger service. I.a. WhatsApp Business has already been tested as a communication channel for companies. In 2018, Asia continued to integrate Whatsapp Payments. You can send money to users there. This could become even more important when Facebook launches their Libra cryptocurrency. A link between Whatsapp and Libra would be obvious.

Whatsapp currently only brings data, not money. You will not be satisfied with that in the long run, which is why you are currently exploring the possibilities of how the service can be redesigned most profitably so that you no longer have to sit at the expense of the app in the future. It will be interesting to see what will become of the service. The competition positions itself primarily with one main feature on data protection. This is exactly what Whatsapp cannot score with and has no intention of ...

 

 

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