From years I have been contemplating how does Whatsapp monetize? How does it generate revenue to pay its employees salaries? And the most staggering one, Why did Facebook acquired it for a whopping $19 billion if they didn’t plan to monetize it in the long run?
After the acquisition, every Android app development company in USA speculated that Facebook will induce ads or sponsored messages to cover up the massive payout. However, Facebook declined any intention right from the start with the commitment that it would degrade the user experience which they didn’t want to let happen.
The acquisition took place in 2014 and since then, Facebook seems to stay put on its decision to provide an ad-free experience to users. Even the $0.99 subscription for iOS users was removed. The original Facebook messenger shows ads and sponsored messages though.
Is Whatsapp Going to Charge in Future?
All things aside, we are certain that Whatsapp is planning to charge soon. A daunting news, isn’t it? Well, not for the common users. For them, Whatsapp will be free as it always was. The company is planning to charge large scale and ultra large scale organization for their advanced version app with upgraded business tools to make communication with their clients easy.
Do General Users and Small Businesses Need to Worry?
We guess not. General users and even the small to medium scale enterprises wouldn’t have to pay to avail the new app. However, behemoth enterprises will be charged if they want to avail the fully featured app with mass communication features.
Whatsapp CEO Matthew Idema in an interview with Wall Street Journal made clear that “We don’t have details of monetization figured out yet”. The new feature is developed “to provide enterprises like airlines, e-commerce sites, and banks with useful notifications like flight times, delivery confirmations, and other updates”.
It’s a Good News for Startups and Business Owners
The company explained that it wants to help “someone placing an order with a local bakery or looking at new styles from a clothing store” and “shopkeepers who use Whatsapp to stay in touch with hundreds of customers from a single smartphone”.
That means with the new and ‘free’ feature, businesses like small scale Android app development services will be able to communicate effectively with their new and existing customers.
Overall there’s nothing to worry about just now or in the upcoming months. Common users, small, and medium scale enterprises can actually exploit the new feature to increase the reach of their business. And big players, we are sure they will get more than they pay for.
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