Here is How WhatsApp is Going to Make Money

WhatsApp announced that they are not going to charge anyone the $1 yearly fees but they are still going to make money.

WhatsApp got some good news for it’s billion plus users, they will not charge you anything ever.  If you are worrying about getting closer to your WhatsApp expiration date, this news will make you grin.

Here is How WhatsApp is Going to Make Money

Jan-Koum, Chief Executive & Co-Founder of WhatsApp.

WhatsApp is used by more than a billion  people world wide, and it stands out in the place of Instant messaging service.

The availability of WhatsApp over all mobile platforms be it Windows, iOS or Android made it the default messaging app for most mobile users.

It also helped to get rid of hefty bills on international calls by , providing VoIP.

But after a period of one year from registration, users of WhatsApp were asked to pay a minimum amount of 0.99 USD ( 67 INR) per year or 3.71 USD  ( 244 INR) for 5 years. Though I have not heard that anyone has paid WhatsApp for the service, it just renew itself like the never ending trial period of Win-RAR.


Though if you wanted to pay WhatsApp you were required to use PayPal.   Paying 1 Dollar is not a big issue but most people don’t have a paypal account or credit or debit card, to pay for it.

Even after becoming an unavoidable thing that people wont hesitate to pay, WhatsApp claims this as an unsuccessful approach. Probably Mark knows he may lose couple of Million  WhatsApp users due to reasons mentioned above.

Won’t look good for whooping $245 Billion valuation of his company FaceBook.  

In countries like India, making transactions online is still an uphill battle for most users, and only around 15 %  of cards in our country were used for online transaction.  Bearing all these hurdles in mind, WhatsApp made this decision otherwise it may loose user base. The cancellation of subscription fee will be effective after few weeks.

Here is How WhatsApp is Going to Make Money

If you have been thinking , so what they are going to do next, push Ads?, then WhatsApp answer to you is No, beside being owned by Facebook (which does targeted Advertising).

The company claimed to not to make third party advertisements,  instead they said to provide useful information by testing new tools. They are planning to commercialize it in a different way rather showing ads in the App.

According to the company information such as bank transactions, airline status etc,  will be provided to the users, and WhatsApp will benefit from the tie-up with those companies. Facebook also has a tie-up with Uber, the popular ride-booking service, to allow users to hail a taxi directly from its messaging application.

It’s skeptical , whether this new approach is going to work out for WhatsApp, even if it does, not sure if the company’s are going to provide useful information or  is it going to be a toll on our privacy. We hope that the user information will be kept secure.  Nothing wrong with the approach as long as user data is secure and it is not annoying for users.

This also essentially means how Facebook use the user information to show ads based on interest and keyword targeting , Geographic locations.

Similar information can be used by WhatsApp which may like to do social servicing for large Corporate using instant messaging or may be send little cheeky promotional offers right in your inbox.

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