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WhatsApp Journey | Business model of WhatsApp | How WhatsApp is Earning

WhatsApp journey

How WhatsApp journey started?

WhatsApp journey started is 2009 by Jan Kaoum & Brian Acton. Both were working in Yahoo. It was started by them after buying iPhone, and realized that this app industry will be on peak in future world.

In the starting phase WhatsApp was not a messaging app, All you can do was update your status so other people can see that.

WhatsApp saw an increase in user traction after Apple launched Push notifications in June 2009, which allowed the users to be pinged when someone in their network updated their status. Users liked this functionality very much that they started to ping one another, which gives the idea to founders to convert WhatsApp into an instant mobile messaging service.

WhatsApp is Free for All Users

In January 2016, Whatsapp announced that service was made free for everyone. The founders of WhatsApp laid out the new vision for monetizing WhatsApp, which didn’t feature ads.

People might thinking that then how whatsapp running without subscription fees. Whatsapp started the new tool that allow people to communicate with businesses and organizations that you want to hear you from. That means communicating with your banks about your all transaction done or maybe the alerts that transaction was fraudulent or not. Other businesses like Airline ticket updates or flight delay. Connecting with institutes about their courses etc.

We were getting these messages thru text messages but whatsapp provides you the better service in information and updates services without experiencing any of their party adds.

Facebook started using WhatsApp data

After making WhatsApp free for users, WhatsApp announced another update about “End-to-End encryption” in April 2016, Which is simply means nobody, not even WhatsApp would be able to read the content of user’s messages.

In August 2016,  Facebook came up with another update that some of their data would be shared with the parent company Facebook.

WhatsApp journey

To explain WhatsApp "Facebook wrote in a blog"

“By coordinating more with Facebook, we’ll be able to do things like track basic metrics about how often people use our services and better fight spam on WhatsApp. And by connecting your phone number with Facebook’s systems, Facebook can offer better friend suggestions and show you more relevant ads if you have an account with them. For example, you might see an ad from a company you already work with, rather than one from someone you’ve never heard of.”

After 2 years of acquisition Facebook trying to recover the money of buying WhatsApp by this update. But at the end WhatsApp confirmed that end-to-end encryption is still in place, and neither WhatsApp nor Facebook would be able to see user messages.

Founders of WhatsApp leave Facebook

Facebook acquire WhatsApp in 2014. At that time Facebook agreed on that not only the founders operate independently also Facebook can’t monetize the WhatsApp till 5 years.

While Facebook wanted to implements ads in whatsapp. So they came up with an idea “Metered-User model”, that users have to pay after a certain number of messages.

So how WhatsApp making money?

WhatsApp journey - earning

WhatsApp makeing money through two sources: WhatsApp for Business & WhatsApp Pay.

 WhatsApp also generate revenue from ‘Click to WhatsApp ads’ which redirect users from Facebook to WhatsApp.

WhatsApp For Business

The WhatsApp Business App helps businesses serve their customers on WhatsApp, With providing services like create product catalogs as well as provide customer support.

While the business app is free to use, WhatsApp charges business for delay in replies. Businesses are allowed to respond to messages from users for free for up to 24 hours but are charged a fee per message for delayed responses.

WhatsApp’s quick response fee shows that WhatsApp want’s to make sure that businesses give preference to customers on their queries.

IN 2020 WhatsApp also announced that they will charge for WhatsApp marketing.

WhatsApp Pay

WhatsApp started new service “WhatsApp Pay”. This is the similar model of earning like PayPal, GooglePay and other payments apps.

WhatsApp started this service so people can transfer money thru upi on WhatsApp application. There is no need to move on other application for payment transfer while you are chatting on WhatsApp about money transfer.

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