How Does WHATSAPP make its money??[Billlions($) per year]

Whatsapp was founded in 2009 by Brian Acton and Jan Koum as an alternative to pricey SMS services. The app allows users to upload their contact book and message anyone who has the app installed at no cost. It is available for iPhones, Androids, Blackberries, Windows Phones, Nokia Phones, and most recently desktops.
Facebook acquired Whatsapp for a tremendous amount of $19 billion in february, 2014, the largest deal in the TECH history.

$1 at a time!!

The short answer is $1 at a time. In some countries the app costs $1 to download; in others it is free for the 1st year, and then $1 each succeeding year. With over 1 billion active users  and about 1 million users adding each day, yearly revenue can be simply calculated to $1 billion per year..😱

Monetisation!!

Now, Whatsapp monetizes itself in a very limited fashion and they admit that they may not be very successful in collecting revenue in the long term.

Whatsapp is increasing its user base using a technique called "Market Penetration".

What happens in here is that if a person downloads the app, he encourages other people in his social group to download the app and then they encourage their social groups. It works as a chain system.

As the user base increases not only does the yearly subscription of $1 bring in substantial revenue but advertisements and other forms of monetization create a hearty revenue.

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Also Read: Tech Myths