Reality Exposed: How do whatsapp earn money?

Earlier days, when whatsapp was launched, it was free for one year and then Rs 50 Rupees was fee to use the app. But later on they removed the fee and made whatsapp free for life time.

WhatsApp was founded in 2009 by Brian Acton and Jan Koum, former employees of Yahoo! Rumour says they were rejected in one of the Facebook Interview. They worked together and build this app. This app primarily sends text messages.

There were arguments among professionals about the originality behind the app building. Most claim it is just an advanced version of page device which was popular in 1990s. But any ways today whatsapp is million dollar industry.

Facebook finally abled to acquire whatsapp. So these days facebook is handling all the functionalities of whatsapp?

Wait, what about the earning source? Facebook is not dumb to pay millions of amount to buy an application rights which has revenue capacity of ten times it has paid for. But where do the money earning takes place?

They make money from data about the user. It is not restricted to email, debit card details or credit card details, or which internet connection user is using. But it is all total data of user. For instance, what kind of messages user is sending. How actively user is using whatsapp application then using email or phone call. Is user using video call or just making telephonice call. Is user using mobile device to purchase something? Is user storing confidential data in the phone? There are plenty.

Such data collection is called data mining. Those who analyse data are called as data analyst. This field is known as data science. Mind it, data analyst are the highly paid employees in any company.

If you are wondering, are they stealing your debit card or credit card details? Then dont worry. These people are professionals and Good People. But yes, if fraudsters gets these details from any other source then it would cost you.

Now the question is, what are they going to do by collecting data?

They are selling these data to other company. Other company after analysing the data is going to launch next generation device. One of the best example, is one decade back after analysing users upload their friend group photos on orkut, mobile company launched front camera phones.

So the point is clear now, whatsapp earn money by collecting data of user. And such company sell in the market. Are they selling email or any personal data? No not exactly. They are selling broader data. Which is not user specific.

So this way, Whats app earn money.