The social media giant’s acquisition WhatsApp, an instant messaging service is looking for different ways to generate revenue.
WhatsApp’s co-founder, Jan Koum stated at the Digital Life Design – DLD Conference held in Munich that it will be dropping the $1 subscription yearly cost from its revenue generation strategy and explore new ways to earn the revenue lost to connect again with the business. Ever since its inception, the company has been running on the same business model but now Facebook Inc. wants to explore new ways to generate revenue for the instant messaging application.
Ever since WhatsApp was acquired by the social media giant back in 2013 for a price of $22 billion its growth chart has been seen in an upward trend. Back in September of 2015, the active monthly users of the messaging app had reached over 900 million subscribers. The application is expected to cross the 1 billion mark of monthly active users soon enough.
After the acquisition of the app, many had predicted that Facebook would run it on the same monetizing platform that it applied to the social media website but turns out it had just gone with its initial revenue generation strategy. With the help of this strategy, the app was free for one year after subscription and after the one year mark it would cost $1 fee for each subsequent year. Through this approach, the company was aiming at charging minimal fee but its turns out that the approach was not quite working for WhatsApp.
Currently, the company has been looking for alternate and new ways to generate revenues as according to the Co-founder, the current strategy wasn’t quite working for the company. He added to his statement that there were a number of application in the market that were free of costs that the users could use, in case they were looking for a communication app that was free, including Facebook’s very own Messenger app. He stated that the company does not want its customers think that their communication with the world is cut off, at any point in time.
In an off stage comment to the Wall Street Journal, Mr. Jan Koum stated that it was not necessarily about the money, it was basically about the people and building something that it useful to the customer. At the point, the instant messaging and calling app has not yet laid down a finalized plan but it is trying to connect with various companies and customers through them.
However, it is planning on doing something similar to what it did with the Facebook Messenger app in which it gives its customer a chance to connect with the businesses and will now be offering payment solutions and bookings.