September 25, 2022

Imagineers

Engineer's Line

Whatsapp Case Study : How Whatsapp Earn Money?

9 min read

Hello, musketeers!

From’ Good Morning’ dispatches of the family, to the fake dispatches of WhatsApp University, moment, WhatsApp has come the most popular messaging app in the world.

They’ve further than 2 billion yearly active druggies. Meaning that 25 of the population of the world use this one app. But have you ever wondered, since this app is fully free to use, and there are no advertisements on this app, so how does this company WhatsApp earn plutocrat?

come let’s understand the Business Model of WhatsApp.

WhatsApp was innovated in the time 2009, by two people Brian Acton and Jan Koum. Before this, the two had worked together atYahoo! for 9 times. And when they leftYahoo!

they were applying for jobs at colorful companies, they applied to Facebook but were rejected. They applied to Twitter but were rejected from there as well. In fact, in 2009, Brian Acton had famously twittered, in it, he’d written that he’d applied for a job at Twitter, but he was rejected, but he was not too disappointed because the commute would’ve been too long. He twittered commodity analogous after being rejected from Facebook. Ironically, just 5 times after this, Facebook bought WhatsApp for$ 19 billion. But before this, it’s intriguing to know where did they get the idea of creating WhatsApp? Jan Koum used to affect gymnasiums , and there he realised that he wouldn’t be suitable to admit the calls of his musketeers. He kept on missing calls.

That made him suppose that there should be an app, that would should a status that he was in the spa at the moment, so that his musketeers could see the status and understand that since he is in the spa, they should not call him also. On this introductory idea, he created the app WhatsApp. It’s intriguing to note that this app did not have messaging. You could not shoot dispatches to anyone. Like you can do so now on WhatsApp. This app was simply WhatsApp. The word WhatsApp came from the words’ What is over?’ Like you ask people,” What is up

On this app, you could simply let others know what you were over to.
Meaning that you could simply post your status on this app.
You could write that you were in the spa.
And the app would notify the rest of your musketeers,
that you are in the spa.
When you change your status, this app notified your musketeers and connections.
This app was created for doing simply this, originally.
But ultimately, he realised that
some of the druggies of this app
were using the status as dispatches.
When one would change the status to doing commodity,
their musketeers might modernize their status with whatever they were doing.
So the first person would modernize their status yet again, in response.
also, people started using these as dispatches.
also they allowed that

it would be better to make the app a messaging service.
And this idea was a huge success.
Because back in 2009,
there was only one other app on which one could communication others for free.
That was the BlackBerry’s BlackBerry Messenger( BBM).
The problem with it was that
you had to have a BlackBerry phone.
So only the druggies of BlackBerry phones could use BBM.
And WhatsApp filled in a gap then.
The druggies of other phones
felt the need for a free messaging app,
and WhatsApp came that app.
Within days,
it was downloaded over,000 times.
WhatsApp started entering backing from investors.
WhatsApp’s fashionability soared on its own.
Without any marketing or advertisements.
Because druggies liked it so much that they told their musketeers about it.
Those musketeers told their musketeers,
and WhatsApp saw organic growth.
As you’d flash back , around 2009,
these telephone companies used to charge a lot of plutocrat
for transferring each SMS.
Calling rates were grounded on twinkles per call.
They were relatively precious.
And then was a clearcut free option
so people started using WhatsApp.
Within the coming 2 times, this app came one of the top 10 apps in the AppStore.
This was true for nearly every country.
Except for America.
In America, in 2009,
utmost of their telephone companies had flat rates for SMSs,
and free calling twinkles.


So this was not a great incitement for the Americans
to use WhatsApp.
They continued with using SMSs.
And indeed moment,
the USA is one of the worst performing requests for WhatsApp.
Can you imagine it?
WhatsApp saw its growth due to European, Asian and African countries.
Talking about plutocrat,
originally, there were not numerous charges to run WhatsApp.
They had a small platoon,
they had erected a simple app.
They were not spending plutocrat on marketing or running advertisements.
So the biggest expenditure of running WhatsApp
was actually the cost of transferring SMSs.
The verification textbook that WhatsApp sends when a stoner joins it,
so the one SMS per stoner they had to shoot for verification,
was their biggest expenditure at the time.
Where could they get plutocrat for this?
They had entered some investments.
With their success, further companies wanted to invest in them.
They would give them plutocrat in exchange for their shares.
But the investments were not exactly pouring in.
So they came up with a new business model.
WhatsApp started charging its druggies$0.99
about$ 1 per time,
they started charging their druggies to use this app.
You heard it right, WhatsApp was not a free app presently.
They started charging$ 1.
But despite that, the stoner experience of their app was so good,
and the app worked so easily
on top of it, new features were being added,
like you could now shoot prints over WhatsApp.
Their growth continued.
By 2011, their app had come the top app in the AppStore.
Acton was clear about one thing.
He’d stuck a note on his table.
” No Advertisements! No Games! No Gimmicks!”
He did not want to run any advertisements on WhatsApp.


Nor did he want to add features that had no lesser purpose.
He wanted to keep the app simple and to the point.
The app erected for messaging.
He wanted the app to be so good at that one thing
that no other app could contend with it.
And people keep on using it.
Their$ 1 Business Model was veritably successful.
Within 3 times,
WhatsApp came a profitable company.
All the plutocrat they earned was spent on their small platoon.
So that new features could be added to WhatsApp.
The problems in the software could be remedied.
And a dependable messaging app could be created.
They claimed that their product was their passion.
And that the druggies’ data was not commodity that fascinated them.
That they had no interest in taking druggies’ data.
But after this, Facebook makes an entry in our story.
And this Model started worsening piecemeal from then.
Mark Zuckerberg was trying to buy WhatsApp since 2012.
But this deal was finalised in February 2014.
And WhatsApp is taken over for$ 19 billion by Facebook.
And the workers working in WhatsApp,
now came Facebook workers.
WhatsApp authors had a meeting with Google CEO Sundar Pichai as well.
But no deal was finalised with Google.

Facebook was so hopeless to buy WhatsApp
because WhatsApp was the biggest competition of Facebook Messenger.
And by 2014,
several other messaging operations had popped up in competition.
Like WeChat, Kik, Line and Viber.
Facebook wanted to buy WhatsApp so that
there’d be no significant competition after they enjoy both Facebook Messenger and WhatsApp.
Piecemeal from this, WhatsApp had access to the stoner data of so numerous people,
and Facebook realised that they could use this stoner data to earn further plutocrat.
Because Facebook runs its company by dealing data.
We will talk about this in some other videotape.
When we bandy the Business Model of Facebook.
After this deal, Acton and Koum, the authors of WhatsApp came billionaires overnight.
still,
If you are wondering about their reason to vendWhatsApp.Facebook and Mark Zuckerberg had told them that
they would allow them to run WhatsApp singly indeed after the accession.
That there would be no hindrance in their work.
therefore they agreed to vend it.
It sounds like a good deal.
They get the plutocrat and do not indeed have to compromise on their values.
But there’s no happy ending in this story.
Because there were constant conflicts between Facebook and WhatsApp over the coming times.
The platoon of WhatsApp and its authors
and the way Facebook was pressurising them.


In January 2016, we get to know that
WhatsApp had removed its$ 1 freights.
And WhatsApp came a fully free operation again.
The reason behind it’s said to be
that there are numerous countries like India where people do not have credit cards.
So they were not suitable to pay the$ 1 figure,
and numerous people were actually unfit to go it.
In this case, making this a free app helps in developing a larger stoner base,
so they decided that since they wanted to expand and have further druggies for their app,
they would have to make the app free to use.
The question also arose, what should be the Business Model?
How should they earn plutocrat?
During this time, it was being said that
WhatsApp would try to get into hookups with businesses
and would try to find a source of profit from there.
At the same time, Mark Zuckerberg was being dragooned by his investors
because$ 19 billion had been paid to WhatsApp
and so they demanded to make some plutocrat out of it ever.
Ever they had to justify the purchase and show that it was profitable.
They had to make WhatsApp profitable snappily.
In a way where they could earn further plutocrat from WhatsApp.
In turn, Mark pressurised the authors of WhatsApp.
Fed up with this, the authors of WhatsApp
gave up eventually in March 2017,
they could not take it presently.
Brian Acton abnegated from his job in September 2017.
A many months latterly,
Jan Koum left WhatsApp too.
Saying that Facebook’s opinion on Data sequestration,
and the Business Model that Facebook wants to force on WhatsApp
aren’t what he agreed to
And that he could not tolerate those in any manner.
musketeers, you can say that after 2018,
Mark Zuckerberg established his control over WhatsApp.
Brian Acton went on to establish anon-profit Signal Foundation.
With this, we got the new messaging operation Signal.
As you know, numerous people compare Signal with WhatsApp.
And believe that Signal is a superior app in numerous aspects.
It protects your Data sequestration,
it’s a free operation like WhatsApp.
And most importantly, it’s anon-profit operation.
This time around, Brian decided that
he did not want to get entangled in Business Models,
because whenever they run after gains,
they have to compromise on the principles of the company in some way or the other.
That is why Signal would remain anon-profit app,
they wouldn’t worry about making plutocrat,
they would insure data sequestration of the druggies,
and would give the druggies with a truly free messaging app.
Thankfully, we could get an app like this.
But this videotape is on WhatsApp.
So what happed to WhatsApp also?
What was the Business Model that Mark Zuckerberg cooked up?
In 2018, Facebook launched the WhatsApp Business app.
On this app, businesses could produce their business biographies.
And the vindicated businesses,
can link their websites and Facebook runners,
with this business profile.
Facebook established a link between Facebook runners
and WhatsApp.
People can use the business biographies to go on Facebook through the link.
They created an excellent option of promoting Facebook.
The new druggies to visit the business biographies
can now go to the Facebook Page with a click only.
Although the WhatsApp Business operation is fully free to use,
but the Business API,
is the source of profit for WhatsApp.
API is the operation Programming Interface.
principally, a medium through which
multiple operations can communicate with each other.
Or perform a function or a task.
Let me explain this with an illustration.
When you bespeak a hack on Uber,
you would’ve noticed that the chart on Uber,
has the watermark of Google.
principally, Google Charts is furnishing its services to Uber.
So that Uber can show a chart on its app.
Google is obviously not the creator of Uber.
rather, what is passing then’s that Google Charts,
is furnishing its API to Uber.

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