Signal is yet another social media platform that is 100% free. So, how does Signal make money? And how do similar social media platforms make money? The article explains everything in detail.
Moxie Marlinspike and former WhatsApp co-founder Brian Acton launched Signal, a non-profit organization. The company has a safe, secure, and private messaging app. Since its launch in July 2014, the Signal messaging application has grown in popularity. It is a messaging app similar to Telegram and Whatsapp that allows you to share text messages, videos, photos, and other media with your friends and family.
Brian Acton, a former WhatsApp co-founder who left over monetization issues, teamed up with Moxie Marlinspike to create Signal, which aims to protect users’ data.
Privacy and anonymity are two of the most sensitive issues in modern society. Every day, you hear about a security breach or violation caused by application weaknesses. Nothing is safe, including what appear to be completely private and secure messengers.
The Signal does not save any information about its users. Their code is open source. So, anybody can see how the program is put together and ensure that the high-security standards are followed. You can download the Signal on iOS, Android, and Chrome. It is cost-free and has features that are comparable to other applications.
How Does Signal Make Money?
Before knowing how Signal makes money, let’s know how it works.
How Signal Works?
Signal uses end-to-end encryption, which means that every message is encrypted within the app. Best of all, Signal doesn’t have access to the encryption key, so it won’t be able to read your communications if someone asks for them.
The Signal doesn’t save any information about you at all. When you first launch the application, you must check your contact list to see whether anyone else is using Signal.
To hide phone numbers in your contact list, the program employs a cryptographic hash algorithm, and those digits are abbreviated for further security. Signal also does not save metadata or provide users the cloud storage. The day a user signed in is the most useful piece of information it can supply to a third party. There isn’t even a timestamp shown.
As the Signal is owned by a non-profit organization, donations are the primary source of income
It is a non-profit organization in the United States (HQ) that is tax-exempt. Signal also protects the donors’ privacy, so the names of the donors remain anonymous, as does the value of the donation.
Because of its non-profit structure, the firm focuses only on the privacy of its users. Signal accepts donations in both traditional money and cryptocurrencies. The firm isn’t aiming to generate money, it operates only for the user’s benefit.
To stay afloat, it relies on contributions rather than income
As the application is open-source, developers can provide fixes and solutions without incurring a significant cost.
Between 2013 and 2016, the Signal Technology Foundation, formerly known as the Open Whispers System, received funds from a number of foundations. The Shuttleworth Foundation, the Knight Foundation, and the US government-sponsored Open Technology Fund. It generated the Signal of over $3 million, during this time.
In 2018, WhatsApp co-founder Brian Acton, who presently serves as the executive chairman of the Signal Foundation, made the foundation’s highest gift of $50 million.
Although less than 1% of Signal clients donate, it has not revealed the exact donation amount. The main goal of Signal isn’t to bring money.
Public Figures endorsed Signal and brought it a huge customer base
Famous figures like Edward Snowden and Elon Musk have praised Signal as the greatest messaging application administration for security-conscious customers. This has led to an increase in Signal users. Elon Musk didn’t find WhatsApp’s new terms of administration and security measures in the favor of security and privacy. And hence he urged all of his fans to switch to Signal.
The Freedom of the Press Foundation is another non-profit organization that has served as Signal’s financial sponsor over the years. It led to assisting the organization in securing millions of dollars in large and small donations. During the processing of Signal’s 501(c)(3) non-profit registration, these donations helped it meet its development expenditures.
Future of Signal App
Signal’s financing and donations are only likely to increase in the future, and so is the use on numerous stages. Signal emphasis on keeping client information secure as a non-profit organization that goes beyond the basic plans that organizations like WhatsApp use, which changes its security arrangements based on where the money is. To get people’s security isn’t simply an issue of money, it’s an entire way of thinking that Signal works on, and people love it.
The Signal is exclusively focusing on growing its user base. To that aim, throughout the course of 2021, the company has offered a range of new capabilities, such as the option to send stickers or packs, and the ability to create disappearing messages.
So, this is all about how does Signal make money.