WhatsApp – How Facebook is Making Money With This Application?

WhatsApp was founded 6 years ago by Jan Koum and Brian Acton, as an alternative application to the traditional “SMS” text messaging method. The application allows you to send instant messages, photos, video files, audio files and even your location. WhatsApp is available for BlackBerry, Android, iOS, Nokia S40, Symbian and Windows Phone.

Facebook purchased the WhatsApp application back in February 2014 for 19 billion dollars. A lot of people thought that Facebook paid a bit too much for this application, but it seems that in just nine months after they’ve purchased the application, Facebook earned almost 1.29 million dollars.

How is WhatsApp making money?

Well, the answer is quite easy: by getting the yearly payment from all their users. As you all know, after the trial period ends, the users will need to pay 0.99 dollars per year to keep using the WhatsApp application. The application currently has over 800 million active users, which that could mean that the company can make around 800 million dollars per year, if all the users decide to pay for it after the trial period ends.

The application doesn’t have any other sources of income, because it doesn’t allow companies to display ads inside it. We’re pretty sure that the developers will keep the application as it is, and they will not add any ads.

In case they decide to add ads, they might lose a lot of users and we’re pretty sure that they don’t want that to happen.

WhatsApp is getting more users everyday

WhatsApp is getting thousands of new users every day. Most of them come from Europe, India and Latin America. We’re pretty sure that you have at least a few friends that are using WhatsApp, which it’s a high possibility that you are you’ve installed the application because of that.

Conclusion

Many thought that Facebook made a wrong move by purchasing WhatsApp for 19 billion of dollars. We’re pretty sure that they will recover their investment, but it will take a few years. Rumors say that Facebook might be planning to merge the WhatsApp Messenger with Facebook Messenger, but we’re pretty sure that this is not going to happen. In fact, we’re sure that this will be a huge mistake and it will make Facebook lose a lot of money.

Are you using the WhatsApp application? Did you pay the yearly fee for it or you’re still in the trial period?

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