Speak about instant messaging apps, and the first word that comes to mind is WhatsApp! The app can be claimed to be not just a product anymore, but also a household name. It has even become a brand-name, generating billions in revenue. But wait! Whatsapp is a free instant messaging application.
So how does it earn money?
Investing in instant messaging apps
A lot in fact has to be learned from the business model of WhatsApp. The brand does not make money from posting any paid advertisements. And it does not charge the user anything for downloading the app. The core approach of instant messaging apps such as Whatsapp to generate money lies in creating interest among users.
Offer free of cost for first few years until proper demand is born. Then they may charge a periodic fee based on per year or per quarter.
Partnering with other firms whose services may be essential to the end-user. For example, in India, WhatsApp tied with telecommunications giant named Reliance to provide an unique scheme for subscribers.
Investing lesser on manpower and advertisements. The Whatsapp brand employs just 50 engineers! In addition, the company relies on word-of-mouth rather than incessant expenditure on ads and search engines.
Less investment on the website. Get it straight! Instant messaging apps are downloadable as a service. People aren’t going to be concerned with the websites. So why put all your money into the website?
These are just some simple methods on how WhatsApp generated income in billions, without making a heavy investment in the first place. Sensing the current trend, developing an instant messaging application for your business is a guaranteed investment of returns. So what are you waiting for?