How Does WhatsApp & Telegram Make Money?

There are numerous ways that any social media platform can use to make money for their platform and one of the best ways is advertisements. Charging a small amount for a few services or features that WhatsApp is adding to their business app platform.

But, WhatsApp or Telegram does not currently use ads on their platform for a good user experience, although WhatsApp has its premium apps like WhatsApp Payments or WhatsApp business where they are planning to make revenue out of it.

Telegram is such a case, does not have any additional revenue-generating plan although Telegram will make a future plan for its revenue through ads or services from people & businesses, and correctly it’s running on donations, also from the founder’s investments.

WhatsApp has the advanced features than Telegram like they introduced the WhatsApp business with some additional features and the P2P payment system is now introduced on WhatsApp as well. Whereas, Telegram runs only on donations, and its founder press-released information that the Telegram would soon have a revenue plan in a year or two.

Previously, I had given some ways to make money using WhatsApp, now, in this article, I will explain the ways that such apps use to make money through their platform and other sources of income for such companies and also the future plans of generating revenue with such a business.

Sources of Income for WhatsApp

As WhatsApp does not charge its users with subscription fees, it leaves us with the thought of its source of income. The two main income sources for WhatsApp are the WhatsApp business and the P2P (peer to peer) WhatsApp payment.

WhatsApp Business:

WhatsApp Business was launched by the company for the users to build a business profile. Creating an account on WhatsApp business makes your business a verified business on WhatsApp. This Business application allows users to link their business websites and their Facebook accounts to their WhatsApp business profile and also integrates to the WhatsApp business API making it easy for them to connect to their users.

WhatsApp business app

You can download WhatsApp businesses from your app store for free and use it to expand your business using WhatsApp for business API.

P2P WhatsApp payment:

Recently Facebook-owned WhatsApp launched WhatsApp payment to its US or others users. This P2P WhatsApp payment has a payment option within the WhatsApp application for its users. This feature has opened gates for businesses that are dependent on WhatsApp business for their business profit and capitalization of their company.

whatsapp p2p payments

Sources of Income for Telegram

Just like WhatsApp, Telegram is a free application. Presently its only source of income is through donations. However, recently Telegram has decided to launch a pay-for-service model to earn revenue. Here is what you need to know more about donations and the pay-for-service model of Telegram.

Telegram Donations:

At present Telegram wholly relies on donations from Pavel Durov through his digital fortress fund. For now, Telegram has received a generous amount of donation from him that is sufficient for time being. If in case it runs out of donations, it will invite users for donations with a non-profitable intention.

Pay-for-services Model:

The messaging Telegram application has recently planned to launch a pay-for-service model. According to this model, the premium users of the Telegram app will have to pay for some extra special features that they can get added to their Telegram account.

Currently, the features that the users enjoy for free will surely be available for free in the future. The added premium features will be beneficial for the business companies and the power users. Apart from the premium features, Telegram is also planning to include an ad platform for its users on their channels.

Telegram vs WhatsApp:

There are a few features and revenue models to compare between these two apps Telegram and WhatsApp.

Telegram Features:

  • End-to-end encryption via chats.
  • Open API.
  • Passcode lock.
  • Create public groups with up to 0.2M participants.
  • Delete sent messages within 48 hours of sending.
  • Share files up to 1.5 GB.

Earning Revenue:

Donations and Pay for services Model – The users have to pay for acquiring some special extra features on their Telegram account which can be a source of income for Telegram. This plan is yet to be launched.

WhatsApp Features:

  • By default end to encryption.
  • Video calling.
  • Active internet connection for cloud sync.
  • Create public groups with up to 256 participants.
  • Delete sent messages within 7 minutes of sending.
  • Share files up to 100 MB.

Earning revenue:

WhatsApp Business and P2P WhatsApp payment – Recently WhatsApp has added this feature of payment option making it easier for the business running from WhatsApp.

How does WhatsApp Make Money with End-to-end Encryption?

End to end encryption feature of WhatsApp prevents anyone, also WhatsApp to access your data shared. Only the sender and the receiver have access to the data and messages they share via WhatsApp. No in-between person can read your messages, it is just the sender and the receiver. The messages you send through WhatsApp are secured with locks such that only the recipient could unlock and read the messages.

You can rest assured that your shared data and messages are protected and it can only be unlocked by the private key of the sender and other third parties can do so. However, as WhatsApp is Facebook-owned, a few other data is shared with Facebook so that you get better ads. With this don’t be confused with ads on WhatsApp. WhatsApp is and will always be ad-free. End-to-end encryption protects your sent messages and prevents hackers to get through your messages.

How Does Telegram Make Money?

Telegram, the end-to-end encrypted messaging platform is soon planning to launch its pay for services model in 2021. With the number of increasing users on Telegram, it has come up with this new model of funding the messaging platform apart from the donations that it received from its founder, Pavel Durov, this model will help Telegram to generate revenue just as a source of funding.

1. Planning to Integrate Pay-for-services Model:

The founder of Telegram, Pavel Durov has no plans to sell the company right now, just to earn money. Hence, he has vine up with the idea of pay for service model plan that will add revenue and aid in the funding of Telegram.

Telegram is a popular social media platform in many countries around the world. It has garnered millions of users with its special features. It provides its users, a non-invading privacy policy through an end-to-end encryption feature. However, with the current growth in the number of Telegram users, the founder requires more funding for the app. Hence he came up with the idea of pay for service model.

Under this model, Durov is planning to monetize large channels through ad platforms. The owners and creators of these channels will be benefited by providing them with free traffic which will in proportion to the size of their channels. The other way that can be used for monetizing the app is through stickers that will be made available to premium users. Telegram has planned that the artists creating these stickers will receive their share of profit.

As the messaging Telegram application has planned to launch a pay for service model you should know that according to this model the premium users of the Telegram app will have to pay for some extra special features that they can get added to their Telegram account. Currently, the features that the users enjoy for free will surely be available for free in the future. The added premium features will be beneficial for the business companies and the power users. Apart from the premium features, Telegram is also planning to include an ad platform for its users on their channels.

2. Running Ads on Telegram (in-future):

Apart from the pay for service model, Telegram is also planning to introduce Ads (in the near future), and donations to make revenue for itself. The ads will be sold through Telegram channels with the channel admins through an agreement. Also, you can request donations in your channel by creating content that you can use to monetize and request people for donations.

The Bottom Lines:

This article explained the sources of income for the apps like WhatsApp or Telegram and the ways such an app makes money through their platform. Just go through the above information and you’ll have an idea of the revenue plan of WhatsApp or Telegram.

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