Contributed by: Editor on Thursday, September 08 2011 @ 10:58 am
Last modified on
China's leading dating site, Jiayuan.com has roughly a million users a month now who pay for the privilege to exchange messages with other members. The messages can be paid for by either the sender or the receiver. Their second quarter earnings this year almost doubled to $12.9 million when compared to the same quarter last year. Jiayuan listed on the Nasdaq back in May and since then their stock price has jumped 21 percent (as of last Friday). This is very good especially when you compare it to other Nasdaq listed Internet companies from China (most have fallen).
Jiayuan never relied heavily on advertising on their site as a source of income. In 2008 advertising made up only 15 percent of their revenue. Online advertising is a very competitive market with slim margins and for this reason at the start of this year Jiayuan decided to drop advertising from their dating site completely. Supporting a sales staff and the way it affected the user experience just did not make it profitable. Paid messaging now accounts for 80 percent of their revenue with the other 20 percent generated from in-person events and a premium service members can use to hire a human matchmaker.
For more on the story you can read the WSJ[*1] .