With over two billion active users every month, WhatsApp has grown rapidly into a widely used instant messaging app.
This number of users makes WhatsApp the most popular instant messaging app, beating out two other instant messaging apps, namely WeChat (1.2 billion) and Facebook Messenger (1.3 billion users).
With this amount, Forbes market analysts estimate that WhatsApp can generate more than 5 billion US dollars (around 71 trillion rupiah) with an average profit of 4 US dollars (around 57,000 rupiah) per user.
These figures have not been officially released by WhatsApp, they are just estimates from other parties. WhatsApp's revenue estimate is calculated by comparing the increase in revenue on instant messaging applications such as Line and WeChat.
It is more difficult to determine WhatsApp's revenue since it was bought by the Facebook company (now known as Meta) in 2014 with a value of Rp223 trillion. In the past, WhatsApp charged an annual subscription fee of 1 US dollar (around IDR 14,000).
Back then, WhatsApp made money from subscriptions. With the implementation of this subscription fee policy, WhatsApp's revenue becomes clearer.
Like when WhatsApp had 10 users and made 10 US dollars. However, Meta discontinued the subscription fee policy in 2016.
Finally, WhatsApp, created by Brian Acton and Jan Koum in 2009, became a cheaper instant messaging platform to compete with SMS.
WhatsApp does not have "merchandise" that users can buy in its app, such as coins, tokens, and so on. WhatsApp also does not display ads to monetize the platform, for example WeChat and Line.
In 2016, Jan Koum, the founder and CEO of WhatsApp, promised to avoid ads on his platform.
How does WhatsApp earn money if it doesn't have a monetization program or subscription fees?
Instead of placing ads on the platform, WhatsApp has a unique way to make money while still giving users free access.
Now, WhatsApp makes money by offering a dedicated messaging service for entrepreneurs or business people. With the number of its users, the platform allows entrepreneurs to communicate with their customers.
WhatsApp Business API is the name of the platform, and unlike the regular version of WhatsApp Business, many users can access it using just one number.
Users must pay the bill amount set by the WhatsApp Business API each month based on each chat a business has with its customers on the WhatsApp Business API. The rates for each chat vary by country.
There is no way to get WhatsApp Business API on the App Store or Google Play Store. Users who wish to obtain this service can contact Meta Business Partners in each country.
Along with the elimination of subscription fees since 2016, this service is an evolution of WhatsApp. By removing the subscription fees that were once charged to users, the WhatsApp Business API now serves as a way for businesses to make money.
That's how WhatsApp makes money without ads. Hope it helps.