nav
Business Operations Business Models

How Does Telegram Make Money (Business and Revenue Model)

The Telegram business model

Telegram logo
Here’s what you should know:
  • What is Telegram, and how does Telegram work?
  • How does Telegram make money?
  • Sponsored Messages (Telegram Ads)
  • Service Fees from Donations
  • Subscription Revenue (Telegram Premium)
  • Telegram profit and revenue
  • What is the Telegram business and revenue model?
  • Telegram funding and valuation
  • Telegram subsidiaries, acquisitions, and exits

How does Telegram make money and how is it free to use? Well, here is a full, in depth, breakdown of their three (3) revenue streams and the different products and services they offer, as well as the Telegram business and revenue model, how much Telegram makes per year, and how Telegram works.

What is Telegram, and how does Telegram work?

Telegram is an instant messaging service that is built with end-to-end encrypted software.

Founded and launched in 2013 by Nikolai Durov and Pavel Durov, Telegram is reported to now have over 700 million monthly active users on its app.

So, how does Telegram work? To use Telegram, users can simply download their mobile app on the Apple App Store or Google Play store; or the desktop version available through their website.

Once downloaded, users can create or join channels, send private messages, voice chat, add friends, and more all through their end-to-end encrypted software.

Some of Telegram’s competitors include Signal, WhatsApp, and other data encrypted privacy messaging apps.

Telegram App in Apple App Store | Telegram Business Model | How Does Telegram Make Money? | How Does Telegram Work?
Source: Apple App Store | Telegram

How does Telegram make money?

According to Telegram, the Telegram app has over 700 million monthly active users which results in more than 500 billion views per month to their channels.

So how does Telegram make money off of all those users and views?

Below is a breakdown of how much money Telegram makes and its revenue model. Including all revenue streams and how much they charge for their services.

Here are the 3 ways of how Telegram makes money in 2022

Telegram has a revenue model that makes money in three (3) ways; ad revenue from sponsored messages, service fees from donations, and subscription revenue from Telegram Premium.

#1. Sponsored Messages (Telegram Ads)

At the time of writing this, Telegram makes all of its money from the sponsored messages they run on their app, which they call Telegram Ads.

As noted above, Telegram has more than 500 million monthly active users on its app that generates over 500 billion views per month to its channels. Which means more impressions on their Telegram Ads. Which leads to more ad dollars for Telegram.

Telegram Ads run on a cost per thousand (CPM) ad model. And the minimum CPM for a sponsored message is $2.10 USD. Which means, that advertisers are paying a minimum of $2.10 USD per 1,000 impressions on their Telegram Ads.

How much do Telegram Ads cost?

  • minimum CPM is $2.10 USD
How much do Telegram Ads cost? | Telegram Business Model | How Does Telegram Make Money? | How Does Telegram Work?
Source: Telegram

Note: According to Telegram, they plan on revenue sharing with the channel owners that the ads appear on – in the future.

#2. Service Fees from Donations

Another monetization strategy for Telegram is the donations bot that content creators can add to their Telegram channels to collect donations.

It’s important to note that, “currently, there is no service fee. [But] payment and payout processing fees are about 3%”, according to Telegram’s FAQ. Though at one time, Telegram did take a service fee of 5% per successful donation.

We will keep this here as they may start collecting service fees in the future again, given that they say they “currently” do not take service fees, which implies they did and or may collect them again in the future.

Telegram Donation Bot Service Fees | Telegram Business Model | How Does Telegram Make Money? | How Does Telegram Work?
Source: Telegram

Note: Telegram does not currently take a service fee from donations, though at one time they did take a 5% service fee per donation.

#3. Subscription Revenue (Telegram Premium)

In June 2022, Telegram expanded its ways of making money and rolled out its subscription service, Telegram Premium.

For a subscription fee of $4.99 per month, premium members get access to perks like 4 GB file uploads, faster downloads, an ad free experience in public channels, exclusive stickers and reactions, double limits, and more.

How much does Telegram Premium cost?

  • $4.99 per month

Telegram profit and revenue

Telegram has not released any official reports in regards to company earnings.

Note: Because Telegram Messenger Inc. is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.

What is the Telegram business and revenue model?

Telegram makes money through a few revenue models that they combine within their company, they are:

  • Freemium business model
  • Advertising business model
  • Subscription based business model
  • Pay what you want (PWYW) business model

Telegram funding and valuation

According to Telegram’s Crunchbase profile, Telegram has raised $2.7 billion over 2 rounds and has a valuation of $30 billion as of January 2021.

Telegram subsidiaries, acquisitions, and exits

To date, Telegram has not made any acquisitions, investments, or exits.