Friday, February 21, 2014

Why does whatsapp has no ads on their screen?

Why does whatsapp has no ads on their screen?

Brain Acton and Jan Koum, the Ceo and founder of this brand famous messenger app “Whatsapp” has given on their official site that they both had worked at the Yahoo Inc. for 20 years. They were working for the collection of data of users to give them related ads on their screen so as to show them only those ads which were interested by the users. While working for 3 and 6 years in the Yahoo Inc. they both Jan Koum and Brain Acton were tired of presenting ads to the users. They think that there is no use of ads on information and loving screens which people love to watch or view every day. People are not searching for ads in their mobiles and on Internet they want their work effortlessly without disturbance. So both of them hate the ads and didn’t want to put ads on their app.

Then how does Whatsapp developers earn money?

First and everyone knows price of Whatsapp
jan kuom, whatsapp founder, whatsapp history, wahstapp secrets
“Jan kuom” founder of Whatsapp
As this app is not free for Iphone users they have to pay 0.99 dollars for the installation of this app in their iphone. In the latest report given by itself Jan kuom , till now they have 300 million users per month into which about 45 million users uses whatsapp through ios platform. Therefore summing up their revenue through these iphone + whatsapp users, they have collected about 45 million dollars in total for this app. Means Whatsapp have started earning but in small quanity.
For the rest of users on different platforms like android, blackberry, windows phone, symbian etc, they have given one year time which has been extended to 3 years, after which the other platform users will have to pay 1 dollar for 3 years. Which will again give them a large amount of money according to the numbers of active users.

Other sources to earn:-

Investers and sponsers
The next secret of whatsapp money making style. Now watching the popularity of the app many sponsors and investors are showing their interest in the company whatsapp. I came to know from the news that an company Sequoia Capital invested around $8 million in the company “Whatsapp” to enlarge its quality with products and high profit. And Jan Kuon has announced to provide push to talk feature in this app soon to give the users more option to connect with their beloved.

Telecom companies

Telecom companies are also interested in whatsapp like facebook. Telecom companies are partnering with whatsapp like messenger apps to increase their users. Recently in India Telecom company Reliance inc. has partened with whats app to give reliance users whatsapp at very low cost or may free for lifetime. And it is expected that Reliance communication will provide whatsapp free without any extracharge for internet and mobile data. so Whatsapp can make their money through many telecom companies like it.
Does Whatsapp sell users data to other companies?
Whatsapp hq mountain veiw, whatsapp office, whatsapp developers, office work at whatsapp
Whatsapp hq mountain veiw
As our all messages are kept save in the servers of Whatsapp, does it mean they can sell our data and personnel information to other big companies? I will say may be they can sell for money. But by Heart I don’t think that they will sell users data to someone else. Because they have worked in a multinational company like yahoo and their messaging app is also at high position, they will not let down the position of the app.
You are reading the article on “How does Whatsapp earn money?”
Other important reasons
1). Number of employees - Whatsapp has limited employees or engineers to work on the database and bugs and for costumer support. About 30 engineers are in total at their workstation.
2). Website cost - Whatsapp website is very cheap and simle they haven’t paid much money on their website. About 10 dollar is the total cost of whatsapp website design and data. Which reduces much cost for the company.
3). Advertisement cost - Whatsapp has not advertised once in the past and is not going to advertise any where in the future. And Advertisement is the real expense of any firm. But this company makes it position by its quality. Which reduces not half but the total expenditure of the company.
4). Research and Development - Whatsapp engineers are continuously working on the bugs, and development of their app. They spend their money only on Research and developments. It means they are going to make new records in number of users and earnings and also provide some best features in it.

Will other messenger apps like LINE and WECHAT reduce the use of whats app?
Global-Messaging-Report-1 for whatsapp, wechat and other free messaging apps, comparison of other messaging apps with whatsapp

Obviously not, because when their was only one messaging platform i.e. Blackberry BBM. At that time users also prefered the blackberry to purchase for their sake. And the whatsapp has important point that it doesn’t show any advertisement, people will not hesitate to pay a single dollar for  this much good messaging app.
And competitors like LINE and WE-CHAT have use only advertisement programs to reach the users. But their app is not liked by the users because of the ads on the app screen in smartphones. Whether they are free but people like quality not money which is much small for whats app about 1 dollar only. so i think you don’t have any other query on the question “How does Whatsapp earn money?”.

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