Top dating products

Posted by / 21-Jul-2020 03:27

Top dating products

[]; App.events.push( { //open / close the menu via button partial: "Partial Top Navigation", context Selector: ".I’ve been listening to the excellent Season 2 of the podcast Startup, which gives an inside look at YCombinator startup The Dating Ring (NYT coverage here). They talk about many important topics, but I had some specific comments on fundraising for dating products.As a matter of fact, online dating has become so popular that, according to Match.com, 53% of singles have jumped onto the trend and created their own profiles.But while dating is alive and well, it’s important to keep in mind how to stay safe while meeting up with people you don’t know very well.You can imagine why successful public Saa S companies try to keep their monthly churn under 2%.So what do the churn rates look like for a dating product? Let’s calculate that: 20% monthly churn = 1-(1-0.2)^12 = 93% annual churn You read that right.Here’s a couple scenarios for products that buy their customers: Here’s a visualization of this: When you start to fill in this chart, you can see a couple things: First, you’ll observe that of course the “ideal” case might look like a super low churn business that also generates a ton of revenue from each customer.However, the market size might be much smaller than the others.

A product focused on casual dating, like Tinder, might escape this dilemma, but dating products generally have built-in churn that’s unavoidable.

Every churned customer is a new customer you’ll have to acquire just to get back to even.

When you look at a successful subscription service like Netflix or Hulu, you might find a churn rate of 2-5% per month, and you can calculate the annual churn through the following: If you have an 70% annual churn rate, you have to have a strategy to replace almost your entire customer base each year, plus a bunch of percentage points to drive topline growth.

Perhaps they’d make an exception for a breakout like Coffee Meets Bagel (I’m an advisor) or Tinder, but in the main, it’s an uphill battle for dating apps to attract interest.

Here’s some data on the few dating cos that have raised.

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Here are the reasons usually given for why investors don’t do dating: Let’s break it down.

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