You can't have both a paid app and an app with billions of users.
You can use WhatsApp to talk to people across the world, you bet your ass that nobody would be using it in Indonesia and Brazil if it costed one dollar, vastly diminishing its value.
If you want a free app that only part of users worldwide can afford there's already iMessage.
In most of the world SMS ("texting") was (or still is) a paid service per message (~5/10/20 cents per message or so, I can't remember exactly and would have to factor in inflation). But it was costly enough that people flocked to WhatsApp to avoid texting costs. Paying 1 USD or 1 EUR per year was a great deal to send unlimited texts.
> You can use WhatsApp to talk to people across the world, you bet your ass that nobody would be using it in Indonesia and Brazil if it costed one dollar, vastly diminishing its value.
WhatsApp had payments (or a pilot) pre-acquisiton. At $1/year, it was an amazing value proposition even for those earning $1/day. IIRC, this was when WhatsApp had 3-500M users globally. Interestingly, they allowed people to pay the subscription on behalf of a contact, so the Indonesian expat in Australia could pay for friends and family in Indonesia, and the aervice could have reached a bullion users and 500M/year revenue with about 200 employees
Did you know people below the poverty line would by $20 S40 feature phones just to be able to run WhatsApp? The other 2G phones cost less than half that amount, but you had to pay $0.1-$0.2 per SMS sent, in that light, spending $1 per year for WhatsApp's unlimited messages on a PAYG data package was a steal.
So no, I am not nuts, you just didn't think through the value proposition.
Network effects, similar to present-day Facetime in the US. There's Zoom and Google Meet, but if your family and friends are already FaceTiming, you're pressured into buying a iDevice.
There's a surprisingly number of people whose usage of the Internet is exclusively through WhatsApp, and may not even know what a "browser" is or how to use it to get in touch with their contacts.
Nonsense, it was very popular in my low-income country even back then. They charged something like half a day of income of a manual laborer per year, and everybody was happy to pay since it made your life so much easier. Of course, there's no going back now that everybody is accustomed to using it "for free".
If you read other top-level comments, you'll find that many people are simply allergic to paying for software. A lot of people don't have cards or even bank accounts so it's just not possible.
It replaced SMS, which was costly, so the deal was pretty clear. Back in those days people were quite aware of SMS prices and 1 EUR/year to replace SMS was a no brainer. It was very popular despite the price. For many people, it was the only app they actually bought.
