Without Advertisements, How Does WhatsApp Earn Money?

How was a free application WhatsApp acquired at $19 billion?

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Who uses SMS now? WhatsApp has 940 million users and that is only increasing by seconds. Thanks to companies like Jio, accessing the internet is much easier and affordable now.

When Brian Acton and Jan Koum founded it in 2009, the only purpose they wanted to cater to was text messages. After it became an addiction and a success, they included images, videos, and voicemails to the contacts who have installed WhatsApp. In 2014, it was estimated at $19 million and was acquired by Facebook.

The question is how does a free application without advertisements earn money? 

WhatsApp was never involved in advertising. They earn through selling the users data. Yes, you heard it right. Just like other social media portals, they too store your data to create a huge database. Later they sell it to big enterprises who use it for better customer service. The companies use the data for digital marketing purposes. WhatsApp doesn’t sell your data directly. For example, if you’re a woman and interested in movies. They will provide that much information to any e-retail site and they will sell the products available for you.

Most of the “free applications” do not earn money from the advertisement marketing. They earn through collecting data that is a more valuable asset to them and other companies.

How much of the information goes to WhatsApp? 

This is what you agree to when you install the application you’re addicted to all day.

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Well, now you know what you have gotten yourself into!

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DailySocial Staff

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