So how exactly do WhatsApp make money?

Following are the few notable strategies WhatsApp seem to follow to earn money.

1. Low employee strength: WhatsApp employs approximately 50 engineers who work on the development of the application and are involve in customer support.

2. WhatsApp does not spend on advertising: It's a most effective cost saving technique used by the company. They rely on word of mouth publicity. It has been the No. 1 downloaded application. Such application platforms such as Google Play, Apple iTunes itself advertises their service.

3. WhatsApp prides itself on working with extremely limited budgets. Their website is worth only USD 10 with almost zero maintenance expenditure.

4. Their platform is extraordinarily simple, thus attracts users from diverse demography from teens to grand parents.

5. Reliance Communications has recently announced its exclusive partnership with WhatsApp in India. Under this partnership Reliance Communications has launched a WhatsApp Plan, for all Reliance GSM subscribers. Thus, WhatsApp gets money via partnership with telecom companies.

6. WhatsApp, has secured USD 8 million in financing from Sequoia Capital, and possibly other investors. This funding accounts for the running costs (data storage, servers etc.)

7. The cost of downloading WhatsApp on iTunes is only 99 cents, and on other platforms is available for free. But there is a catch, WhatsApp is free only for the first year. Second year onwards there is a fee for USD 1.99 for a period of 3 years, and this is where they are going to make money.

Currently WhatsApp has over 700 million active users, so you can imagine how much the company will earn.

However in India however even after completion of one year they are extending some months limit for free usage every time. Probably in order to avoid any unwanted bump in the growth of the network in such a large and promising market before achieving the targeted strength.