Many of my friends and myself included have tried, are trying, or are done trying to use these apps to find a special someone to add to their life. With the stigma of online dating lowering, technology increasing and demographics expanding, the industry looks like it will continue to grow for years to come. IBISWorld estimates there are over dating sites out there today, and new companies will enter the market each year. It costs a lot to acquire customers When you start a business, acquiring customers can be one of your biggest challenges.
Tinder, Hinge have experienced strong organic or word of mouth from their customers which has enabled them to grow a critical mass of users without having to spend exhorbitant amounts of money on acquisition dollars. Having said that, the model has its share of flaws, and tends to favor those that can scale and innovate quickly so they can get the economics of the paid users to not only work, but to continuously deliver innovation that brings in new customers.
Almost all dating sites and apps have a freemium model, with Tinder being the most recent one to follow suit with its Tinder Plus. While many of these apps Hinge have not yet focused on revenue, it will be interesting to see how they plan on scaling and finding ways to generate income. Innovation and Revenue continue to rise Despite these business challenges, the number of dating sites and apps continues to rise.
The industry has its fair share of hurdles and challenges but so does every industry. And while these apps have the same end goal and many similarities differentiation exists within the industry. Due to the size and popularity of Tinder, it became very easy for people just to swipe right without much care or concern.
By placing restrictions, it allowed Tinder to segment their customers and generate an additional revenue stream. Bumble Bumble was founded by Whitney Wolfe, an ex-Tinder Co-Founder, and on first glance looks and operates very similar. No word on their revenue figures but certainly a creative way to generate revenue early on for the company. Currently, they just setup shop in New York and are expanding soon to London, and they even have some tips for you on how to maximize your chances of getting accepted.
Each day, everyone gets one match that they can either like or pass on. If both people like, then they get connected.
However, you can also buy another match for the day through their own currency known as beans You can also earn beans that you can use to get more matches, by recommending someone to another person, or by engaging with CMB on various social media channels. Lastly, you can also buy beans which you can then use at your own discretion. These are all unique things CMB has done to try to drive both engagement and revenue. Dating Apps are here to stay At the end of the day, it looks like dating apps are here to stay.
In the meantime, happy swiping!