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Telegram is a popular messaging app that boasts millions of users worldwide, known for its focus on privacy, speed, and unique features like channels, bots, and groups. While Telegram has historically been free for users, it’s natural to wonder how such a large platform makes money, especially since the company has long avoided traditional monetization models like paid subscriptions or intrusive ads. In this guide, we’ll explore how Telegram generates revenue and its future monetization plans.

1. Telegram’s Philosophy: Free and Ad-Free (Initially)

Since its launch in 2013 by Russian entrepreneur Pavel Durov, Telegram has positioned itself as a privacy-first, ad-free platform. Durov has been vocal about keeping the platform free for users and ensuring that it remains independent, funded without selling user data or compromising privacy.

Key Principles of Telegram:

• No Ads: Telegram’s initial stance was to avoid placing ads within the app or sharing user data with advertisers.
• Privacy-Focused: Telegram doesn’t monetize user data or track user activity for advertising purposes.
• Open Source: Telegram’s API and protocols are open, allowing developers to create third-party bots and integrations, increasing the platform’s functionality without relying on monetization through ads or user data.

However, with a rapidly growing user base, Telegram began to explore sustainable ways to generate revenue while keeping its core values intact.

2. Funding from the Founders

For many years, Telegram was funded through personal resources, primarily from founder Pavel Durov. Before starting Telegram, Durov sold his stake in VK (VKontakte), a popular Russian social media platform, and used part of the proceeds to fund Telegram’s early operations.

This personal funding allowed Telegram to grow without the need to raise money through ads or other traditional forms of monetization. However, as the platform scaled, it became clear that Telegram needed a sustainable way to cover operational costs, such as servers, infrastructure, and development.

3. Telegram Premium Subscription (2022)

In June 2022, Telegram launched Telegram Premium, a paid subscription service that offers exclusive features to users who opt for a monthly fee. This move marked the platform’s first direct attempt to monetize its user base without compromising on its privacy-centric philosophy.

Features of Telegram Premium:

• Increased Limits: Premium users enjoy increased limits for file uploads (up to 4 GB per file), faster downloads, and more cloud storage.
• Exclusive Features: Subscribers gain access to unique features like animated profile pictures, special emojis, and stickers.
• No Ads in Public Channels: Premium users see an ad-free experience in large public channels, even where Telegram displays sponsored content.

Pricing:

The cost of Telegram Premium varies by region, but it generally ranges from $4.99 to $6.99 per month. This recurring subscription helps Telegram generate revenue from power users who benefit from extra features.

4. Sponsored Messages in Public Channels

In addition to Telegram Premium, Telegram introduced Sponsored Messages, which are ads displayed in large public channels with over 1,000 subscribers. These sponsored messages are subtle and designed to align with the platform’s values by not compromising user experience or privacy.

How Sponsored Messages Work:

• Non-Intrusive Ads: Sponsored messages are not displayed in personal chats, groups, or small channels but are shown only in large public channels.
• Privacy-Friendly: These ads do not rely on user data or behavior tracking. Instead, they are contextual and based on the content of the public channel.
• Revenue Split: A portion of the ad revenue is shared with the channel administrators, incentivizing channel owners to grow their audiences and promote relevant sponsored content.

Revenue Potential:

Sponsored messages offer a scalable way for Telegram to generate advertising revenue without violating its core principles around user privacy. As the platform grows, this stream can become a significant part of Telegram’s revenue model.

5. Donations and Crowdfunding

Another potential revenue source for Telegram comes from donations and crowdfunding efforts, particularly for special projects or new features. Although not a primary method of monetization, Telegram has explored ways for users to contribute to the platform’s development voluntarily.

For example:

• Gratitude Donations: Telegram users can donate directly to the platform through bots or payment systems integrated into the app, supporting its growth and development.
• Crowdfunding Campaigns: Telegram has also floated the idea of funding new projects or features through crowdfunding campaigns.

While not a major revenue stream, this method reflects Telegram’s open approach to funding and user participation.

6. Telegram Open Network (TON) and the Failed ICO

In 2018, Telegram attempted a bold move to monetize through blockchain technology by creating the Telegram Open Network (TON) and launching its own cryptocurrency, Gram. This project was aimed at decentralizing communication and payments on the platform.

The ICO:

Telegram’s initial coin offering (ICO) for the Gram token was one of the largest in history, raising $1.7 billion from private investors. The idea was to create a decentralized payment system that would be integrated into Telegram, allowing users to transfer money and pay for services through the app.

Why the Project Failed:

However, in 2020, Telegram faced legal challenges from the U.S. Securities and Exchange Commission (SEC), which classified the Gram token as an unregistered security. After a lengthy legal battle, Telegram was forced to abandon the TON project and return the funds to its investors.

Despite the failure of the TON project, the concept of integrating blockchain technology into Telegram remains a possibility for the future.

7. Future Monetization Plans

Telegram is continuously exploring new ways to generate revenue without compromising user privacy or bombarding users with ads. As of 2024, some potential future monetization strategies include:

• More Premium Features: Telegram may introduce additional premium features for business users, such as advanced analytics for channels, better integration for third-party apps, or more robust enterprise-level solutions.
• In-App Purchases: Telegram could explore ways to offer in-app purchases, such as selling digital goods like exclusive stickers, avatars, or themes.
• Paid Bots and Services: As bots play a significant role on Telegram, the platform could allow bot creators to charge users for access to advanced features or premium services.

Conclusion: How Telegram Makes Money

Telegram has evolved from a free, privacy-first messaging app into a platform that balances user satisfaction with sustainable monetization strategies. Through Telegram Premium, Sponsored Messages, and future monetization plans, the company has found ways to generate revenue without compromising its commitment to privacy and user control.

While Telegram still avoids traditional invasive ads or selling user data, its evolving business model ensures the platform remains financially viable while continuing to grow its user base and offer new features.