Why Facebook has made WhatsApp a free Tool

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A billion plus people on Facebook and a market beaming with potential makes the platform the biggest marketing channel on earth. When facebook acquired Whatsapp for a whopping figure, it was called a terrible investment. Facebook is betting big on making money in the long run by monetizing data by freeing Whatsapp subscription fees and adding a billion plus mobile subscribers who are connected 24*7 and don’t want to log into Facebook to chat.

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Already SMS as a medium has become redundant by whatsapp and new monetization methods are being thought over. While whatsapp adds a million subscribers each month, their was a threat to its growing popularity due to its fee structure. Their was an equal probability that people in developing countries would find it difficult to provide details of their debit or credit card to get subscription of whatsapp.

Being a free medium opens up a world of opportunities. Whatsapp Marketing creates Database that can be leveraged, advertising models that can be monetized with a huge subscriber base. Building a revenue stream just like Facebook calls for implementing a seamless strategy across platforms. Lot of valuable data is created that helps in targeting the right customer base which is what is intended by marketing companies. It has become a Social Media Optimization tool worth capturing.

It has been found that a lot of competitors have lost out on business because of turning into paid fee model. Facebook does not want to take the risk of losing a billion plus prospective consumers in developing world and is taking a bold risk. Hope Whatsapp is as successful as Facebook and dominates the instant messaging space.

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