Signal Business Model | How Does Signal Work and Earn Revenue?

Abinaya Arangarajan Abinaya Arangarajan
Sep 1, 2021 5 min read
Signal Business Model | How Does Signal Work and Earn Revenue?

In recent times, Signal has become the talk of the town after an issue was reported regarding WhatsApp data privacy. Moreover, nowadays hackers or many spurious acts have been carried out where, which happened due to data leakage. So it would be necessary for someone to hold data privacy at a high-security level before it gets in the wrong hands.

Phone calls, messengers, share videos or images and voice calls are highly personal between one party and the other parties. So, securing such data is a high risk as well as an integral role to protect an individual's privacy. ย 

Since February 2021, three major social media sites have been at stake- Facebook, Twitter and WhatsApp after they failed to accord to the new rules and regulations of the Ministry of Electronics & information technology.

WhatsApp have been chastised for being counterfactual messenger apps, whereas WhatsApp proceeded a Controversial policy update as it is compulsory for a user to share data with Facebook when he/she is opening a WhatsApp business account. This issue engendered a deluded act on the side of WhatsApp. Eventually, people began to hype the launch of Signal.

Generally, Signal is a cross-platform centralized encrypted instant messaging service where it functions one-to-one or group chat and subsumes files sharing, voice notes, images and videos download etc. I know, people may wonder that Signal and WhatsApp have analogous features, but Signal has been given a recognized brand name in terms of protection of data privacy.

Where does Signal operate?
Main Products and Services of Signal
Target Audience of Signal
Business Model of Signal
Whatโ€™s unique about the Business Model of Signal ?
How does Signal makes Money?
FAQ

Where does Signal operate?

Signal was launched on 29th July 2014 by Signal Technology foundation and Signal Messenger LLC to secure all communications with end-to-end encryption. Signal is licensed to access in android, IOS, Linux, Mac and Desktop with an updated version of it.

An Interesting fact about the origin of the Signal is that it is a California-based app, a not-for-profit organization. So, obviously Signal is accessible worldwide, where any person from any distant place can endure the features of the Signal app. Currently Signal has surpassed 40 million users globally.

Main Products and Services of Signal

As is discussed above Signal app has been renowned for screen security. Apart from that, the app is ready to bestow top-notch features to feel safe while functioning.

The app has five privacy features such as an incognito keyboard, as you see when you are about to type something it will suggest you complete the sentence because the keyboard is functioned to save what you are typing. But on Signal, it doesn't allow your keyboards to save.

Signal access the users to screen lock by setting fingerprints to lock. Besides, Signal also augmented the group invitation privacy mode, where you can invite as many people to the group, but joining in such a group is valid only if the person accepts the invitation or is willing to join.

Notably, Signal was launched such that even the Signal app itself or the government cannot access a personโ€™s chat or personal data because the app is processed into end-to-end encryption.

Target Audience of Signal

Signal aims to capture social media users, business account users, or any individual who wants to protect their personal information from getting it deleterious.

Number of Users on Signal
Number of Users on Signal

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Telegram is an open source free messaging software used by millions of users. Lets look at the business model of Telegram to understand how it makes money.

Business Model of Signal

Signal is a messaging platform that bestows end-to-end encryption, where the sender and receiver only know what is said and heard, neither the Signal app itself nor Government have the right to peek into someoneโ€™s personal data.

The app provides text messages, sharing, voice notes, images and videos download either among one-to-one or group chat. Recently, just like WhatsApp, the Signal also installed payments mode, where the users can transfer funds to the freinds and family via โ€˜MobileCoinโ€™.

Payments on Signal
Payments on Signal

Besides, Signal earns money through donations, as the company is a non-profit organization. As of 2021, the Signal crossed more than 40 million active users, as many corporations are willing to make donations and can donate to the Signal Technology Foundation either in regular currencies or cryptocurrency.

Whatโ€™s unique about the Business Model of Signal?

Signal is famous for its rise in 2020 after the tweet from Elon Musk to โ€œUse Signalโ€ amid the WhatsApp privacy policy adjustment.

Elon Musk tweet about Signal
Elon Musk tweet about Signal

Signal does not have a detailed Business Model as it is a non-profit organization run application. Signal earns money through Donations.


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Why you should choose Signal Messaging Application over WhatsApp along with the pros and cons of both WhatsApp and Signal. Read this article to know more about it.

How does Signal makes Money?

Donations are the main form of revenue for Signal as it is owned by a non-profit foundation. It is a tax-exempt organization based in the United States. Signal also holds the privacy of the donors therefore the donors are unknown and the donation amount is also kept in the dark.

Due to the non-profit nature of the company, the company only focuses on the privacy of its users. Donations to Signal can be made in both regular currencies and cryptocurrencies.

The largest donation received by the foundation was in 2018 where WhatsApp co-founder Brian Acton donated $50 million who acts as the executive chairman of the Signal Foundation currently.

Conclusion

Two words: โ€œUse Signalโ€ from Elon Musk made a sizable impact on the price of the shares of Signal. The app saw a major increase in the downloads. The application was also endorsed by the Black Lives Matter protest organizers during the summer protests.

Signal is mainly used by journalists and investigators to protect source identity. All this information only solidifies the trust of its users in the Signal application to guard their privacy as it is one of the only messaging applications that doesnโ€™t collect identifiable information on its users. And because the foundation doesnโ€™t focus on profit makes the application trustworthy in maintaining the privacy of its users.

FAQs

What is Signal?

Signal is a free and open-source application founded by WhatsApp co-founder Brian Acton. It provides users with privacy in messaging. It is an instant encrypted messaging app through which a user can send photos, videos, voice notes, etc. without the worry of not having privacy.

Who is the developer of Signal?

Signal was developed by Signal Technology Foundation and Signal Messenger LLC headquartered in California and was released in July 2014.

How does Signal make money?

Signal being a non-profit organization makes money through donations.

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