If you don't pay for the product you are being organized how does WhatsApp make money what started as a very simple business question led me to a black rabbit hole more than?
I would have thought would affect each of us but make sense of all this we need to go back in time?
It's 2009 the iPhone came out a few years ago and the world is starting to catch on with this new concept of smartphone apps Facebook is gaining momentum and a guy named brian acton is applying for a job.
When he gets rejected but says he is looking forward to the next fun of life again that adventure will come a few months later.
When Brian and his friend Jan Coombe came up with the idea for a smartphone app with their WhatsApp originally designed as a way for people to update their status but once
Now free applications make money and at least one of the three ways to advertise in-app purchases or sell your data but WhatsApp founders hate ads and leave.
Their previous jobs on yahoo were due to disagreement over excessive use of ads until they post the official WhatsApp blog of why they hate ads too.
It was not an option but they also did not want to start charging people to use features in the app the reason they started.
The first was that they wanted to build a good product people wanted to use trying to make a better product really was the first and third option was not the first and both WhatsApp founders were private.
So for a while, they were earning no income, they were just
using the real seed money given to them by some rich friends on yahoo and keeping costs too low to save money the WhatsApp team even worked on cheap Ikea tables and dressed up Sleepwear to warm up.
When you think the rhythm of the rhythm that looks like it will grow as fast as possible and make millions of WhatsApp the opposite but still trying to be old and save money was the money.
We had but definitely, most people downloaded the app and other features included as picture messages WhatsApp needed some money to invest in servers and hire a large group for WhatsApp to launch.
One dollar in other countries, you had to pay for this in advance to buy the app while in other countries, get the app for free for a year and then have to pay one dollar a year after.
The thing about this is that the one-dollar fee would not be compulsory at all if one didn't have a one-year renewal at the end of each year WhatsApp used to.
It meant they did not divide their users and enough people paid one dollar WhatsApp was able to keep working for a while getting all the dollars back a year with such a simple app.
They deserved more people if it meant they should not do anything in this while one dollar brought much-needed money to WhatsApp.
It was simply to cover their expenses, which they have not yet profited. So little money but surprisingly that didn't mean that technology companies are in a weird place.
Where you can make lots of money or not make a profit and you don't have a clear plan to make money if you have a lot.
You do good we want to work with you we want to give you
money and like we don't need it which makes them want to invest even more now the reason why the founders of WhatsApp were reluctant to take new investors, at first, they were worried that investors would want to survive more Make money and compromise app quality.
But soon WhatsApp was growing so fast that investment companies funds such as sequoia capital began to give them millions of dollars and agreed to any terms demanded by WhatsApp.
It meant that investors would not disrupt the app or make them use ads + and WhatsApp will get a big money injection and here is the WhatsApp money-making process used for a while to get funding.
In fact, they said instead of trying to get more money from our users let's just invest in making our app better which can bring more users.
Who will bring more investors and the cycle is deep again that was their plan and worked well for everyone who sees Whatsapp as an app that benefits from network results.
The app is better for all users because it means they can send messages to more people so by not investing and plastering them with ads or any paid features.
WhatsApp can grow very fast because people will tell all their friends and family about the app so user counts will continue to rise and as a result, they continue to attract more investors.
Who gives WhatsApp more money to further develop user experience Certainly there is one major problem with this strategy you can't rely on investors forever they will sometimes want to see that the company has a profitable business model.
Facebook has bought a $ 19 billion mobile messaging service in stock and at the time many people were confused about this massive marketing deal with the $ 19 billion payouts coming in.
Is it really worth the data to suggest that in the last nine months of acquisition? facebook's Facebook account generated only $ 1.2 million and thus made a huge loss so why would Facebook buy it for $ 19 billion in the context of buying Instagram for $ 1 billion or comparing that kind of money can pay for a post of 20 mars or build 13 Burj khalifas instead facebook bought a messaging app with very similar features in their messaging system.
Which had low revenue and possibly hi make a loss every year why is the next Facebook strategy to make WhatsApp a real business messaging service doesn't make money now.
But Mark Zuckerberg has plans to change that then there is the st st amount of ingenuity in what we can do together and I actually just think it alone costs more than $ 19 billion even harder... Continue
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