Online dating services business models 3
Jacqueline Kaleel – Today’s competitive and growing economy requires startups to be extra creative when coming up with a successful business plan.
Some companies, however, have formed a successful business plan without a revenue model. There has to be a point in the company’s life span when profit becomes a necessity in order to continue growth.
Although Tinder Plus provides upgraded service options, this premium application has stirred up controversy.
Users will have to pay a different monthly fee based on their age.
If Tinder stops its free service and focuses purely on the revenue model of Tinder Plus, users are likely to look elsewhere for a free service.
But the option to participate in Tinder Plus in addition to Tinder’s free service allows the brand to make a profit while upholding customer satisfaction.
Tinder, the popular mobile-based dating site and one of the IAC’s [most successful] brands, founded in 2012, has become “one of the fastest growing social startups and mobile apps of all time.” Unlike traditional online-dating platforms, Tinder’s application does not include questionnaires aimed at determining relationship compatibility, or discussions about what one likes and does not like. Then users pick a few photos that best describe themselves and start “swiping.” Right means you “like” someone, left means you don’t.
This smartphone app has exploded, receiving more than a billion “swipes” and matching more than 12 million people daily.
And now Tinder is changing the dating scene once again.
On March 10, 2015, Tinder users filed a class action lawsuit over the company’s recent announcement that it will charge a certain fee per month for subscribers to participate in its premium service, Tinder Plus.
Defendants argued that they would have reconsidered downloading the application had they been aware of these additional fees.
The fact that Tinder had such a significant impact on the future of dating with its original, non-revenue business model shows how successful a company can be without an original revenue plan.
Unfortunately, a company with no revenue plan may only last for a short amount of time because a new idea will hit the market, or the business will need to find a way to increase profit.