Whatsapp is a free messaging smartphone application that lets its user send and receive messages, videos, audios, and make calls both audio and visual. There isn't any restriction. However, Whatsapp might easily be making money off you without even your knowledge.
It's under the widespread speculation how ethically and calculatedly the revenue stream of WhatsApp has been flowing from its never-ending user base.
Start wondering as to how does WhatsApp makes money when it comes to the users for free? The answer might come to you as a surprise! What is the WhatsApp revenue model, how does the company survive, what is their business strategy and why doesn't WhatsApp let people know about their revenue model are some other questions that might just make you even more curious.
The free to use application company does not make use of any kind of ad marketing or supportive ads. The returns mainly are through database management. Such organizations collect the user's information, store it in their huge pool and further sell the same to other huge companies. For example, the personal information being sold to companies for email marketing. Once they gain information about the audience, they are able to pass on the ads according to the user's interest and preferences or internet searches. Ever noticed how you search about a particular product on Google and suddenly it's flooded everywhere on the internet? Yes, that's what we are talking about. Eminent enterprises like WhatsApp do not directly sell all the data to the advertisers but rather let them target the audience based on user's activities.
(Image Courtesy: The Telegraph)
So, in short, several mobile application and websites along with the non-social ones, do not really generate any ad based revenue for themselves, they instead collect a huge bank of valuable data for selling to other companies. And the companies who buy this data are willing to pay any handsome amount to companies like WhatsApp. The data that's being acquired is quite extensive and may even help the purchasing company to build specifically target based products and services.
Isn't it illegal?
WhatsApp doesn't make use of any illegally procured data, but everything is done with the consent of users. Remember the rage when everyone was pissed about a check box that needed to be ticked/ unticked to not let WhatsApp use your personal information. If you didn't pay attention, WhatsApp is earning out of you!
(Image Courtesy: Ways To Learn Something)
Other ways?
Another way of earning are those users who unquestionably pay $1 subscription charge annually. Do you know how to use WhatsApp for free? Some really don't, and they are the ones donating.
WhatsApp has the potential and the ability to generate even more revenue in future with the help of minimal ads, but that would lower the visual appeal. And according to Mark Zuckerberg, advertisements might just irritate the users. Monetisation strategies like these just bring down the clientele, however, focusing on expanding the user base seems to be important.
There are over a billion WhatsApp active users, a lot of data appropriately extracted and tremendous revenue generation!
Liked what you just read? Have any more suggestions or opinion? Let us know through the comment section below. We would love to hear from you!
(Featured Image Courtesy: TechCrunch)
19 Opinions
12 Opinions
65 Opinions
5 Opinions
