WhatsApp Eliminates $1 Annual Subscription Fee

Posted: Jan 19 2016, 5:08am CST | by , in News | Technology News

WhatsApp Eliminates $1 Annual Subscription Fee
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  • WhatsApp eliminates $1 yearly subscription fee!

WhatsApp will instead invite businesses to its vast network and monetize from them.

WhatsApp has revealed it will no longer charge its $1 yearly subscription fee in the coming weeks. The announcement was made by WhatsApp founder Jan Koum at DLD in Munich, Germany. An official blog post by WhatsApp has also confirmed the news.

WhatsApp continued with the same business model active since its inception. The model states users will have WhatsApp free for the first year. Afterwards a dollar each year will be charged.

WhatsApp recently passed the 900 monthly active user (MAU) mark back in September. About two years ago WhatsAp had been acquired by Facebook for $22 billion.

Many were concerned about where WhatsApp will head under Facebook’s leadership. Koum just admitted the original model does not work for everyone. According to Koum, some people don’t have credit cards. Similarly other messaging apps are free to use e.g. Facebook Messenger.

Instead of charging users, WhatsApp will now experiment with the monetization opportunities found in advertisement. WhatsApp will be connecting companies with their customers.

Koum admitted WhatsApp hasn’t really settled on the final plan yet. WhatsApp still has to write the first line of code of their new model. WhatsApp did reveal they are interested in helping big businesses use WhatsApp to conduct customer service.

WhatsApp will be launching accounts specifically for businesses. It simply means WhatsApp will soon be becoming a platform for businesses.

Since WhatsApp has already been used by a billion users worldwide, trying to monetize them seems a good plan. The removal of the dollar fee will also will remove any remaining friction for those who have unable to use WhatsApp. It is possible WhatsApp may use the same plan announced for the Facebook Messenger.

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M. Affan covers the hottest news that captivate the web today.




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