How Does WhatsApp Make Money?

how does whatsapp make money

The most famous and regularly used social media application in the entire world. Nowadays social media is governing the whole world as it is extensively accepted in every country. It is a wide network to stay connected with anyone with its noble features of secure and encrypted chatting, voice, and video calling thereby WhatsApp applications have made a space in every person’s heart.

Not only for casual chatting it is been used for business deals, journalism, and communicating. Here privacy is a big concern so the messages sent on WhatsApp are private for it to be secure WhatsApp has designed end to end encrypted system in its latest version which means no other person even their own WhatsApp cannot read the confidential messages of any person.


Some 10 years back if we look there would be no such thing to communicate socially. The small phone with only a calling and text messaging facility was enough. But as changes are a must and inevitable.

This application was started in 2009 with version 2.0 for messaging. It was only launched for business talks and generally used to chat over business discussions nonetheless, later became a big hit and was used by the entire population. In 2014 the social media giant Facebook purchased WhatsApp for $19million.

What it is actually?

Basically, it is a free application compatible with any operating system whether android, ios, or windows. The hassle-free video and voice calling makes it an efficient and prominent application to use regularly it just uses your internet connection.

The number of WhatsApp users has been increasing since its launch and crossed 300 million users to date, as compared to any other social media this numerical value is very huge.

So, the company does this aid for free? Does the company do business ethically?   How does the company profit from their employee working for them?

How does WhatsApp Make Money?

Apart from all knowing all this information about WhatsApp, have you ever imagined how WhatsApp makes money? No, then read the points I have listed below:

Other apps earn with the advertisement shown on their webpage but WhatsApp does not do so. Still, the question remains the same where do they earn?

These are the few questions one might think, nothing is rocket science here is the method of how WhatsApp makes money. Around 92% of the apps are free to use on any OS, but when it comes to WhatsApp, the team earns by these methods:

1)    The apps earn a profit for every download WhatsApp earns $1 per download on iOS and $1 per year on other operating systems like Android and Windows.

2)    The main earning arises from Database management; the word is enough to guess the logic. YES! the social media giants know more than you know yourself so drastically, they use your personal data ethically to promote specific ads for you.

3)  In easy words, the advertisement company knows people uses these eminent app Facebook and WhatsApp every day so to advertise their product there is no better platform than this, therefore, they take the relevant data from these giants and targets the specific age group to sell their products.  That’s how one gets to see only those ads which you want to buy.

4) When you download WhatsApp, you register your number and start talking with your loved ones, without paying a single penny, interesting, right? But no, they charge a subscription fee. When you register yourself as a brand-new user, you are allowed to use the application completely free for one year, but after that $0.99 is charged by every user. But still, till today I have not seen anybody paying money for WhatsApp, so we can say that it is a good thing.

The whole database of a person is used for marketing so we itself is a product here that Facebook + WhatsApp now targets.

5) One perhaps interrogates, how this is possible, but eventually, WhatsApp with the use of a smartphone knows where you go, what you do regularly, and who all are your friends so privacy is thus hampered. But till now WhatsApp hasn’t used private data in an unethical way which is necessary to be trustworthy in the eye of a subscribe

6) You might have noticed the things which you search to buy on Google or Yahoo are the same as getting displayed on the Facebook app. How they know which product do you want? Apparently, they target what one wants and displays relevant adds on social media.

Both WhatsApp and Facebook and now Instagram also keep an eye on the profile, and chats so they know more than what you like.

7) So targeted advertisement here is faithfully used by Facebook to collect accurate personal data from its WhatsApp and Instagram.

Everything has its pros and cons, here too applies the same as WhatsApp gives such incredible features to communicate free of cost and thus expect some personal data from you for their use. This is for sure the data isn’t used for malfeasance use and WhatsApp will continue to provide extraordinary features for their subscribers.

Final Words:

After reading the complete guide, I hope you are clear about how WhatsApp makes money, and you have also found it quite interesting.

We are and will always be thankful to the developers for these communication applications as because of them only we are connected with our loved ones via messages, audio, and video calls. Before there was only WhatsApp and Facebook but now there are many other social media applications that you can use for communicating.

We are soon going to be back with more interesting tutorials and articles that will surely leave you in shock. Technology is updating itself on regular basis and we are the ones who are here to provide you with information on the latest technologies so that you can also keep yourself updated with the latest trends.

So, stay tuned and don’t miss the updates, enjoy life and stay happy!