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A new "Dating Services in Canada Market Research Report" has been released in January 2015 by IBSWorld. The report requires payment to read the entire thing (no less than $725 US) but they did release a few interesting statistics for promotion that are worth mentioning.

According to IBSWorld the dating industry in Canada grew 6% from 2010 to 2015. They feel this rate is low due to the recent recession but the rate of growth is expected to increase in the next 5 years.

In Canada there are 255 businesses in the dating industry that employee 523 people. On average this means every dating business employees 2 people. In my experience the case more likely is that most of the businesses employee 1 person (the owner), a few probably employ 2 to 5 employees, and the very few employ 5 or more. The reason for such a low number of employees and high number of businesses is the relative ease and extreme low cost required to get into the dating industry. Free dating site software can be found online and web hosting can be found as cheap as $5 a month.

The report also mentions that revenue generated by the dating industry for the year in Canada is $153 million. This seems rather good especially with 255 businesses which would suggest that on average each generated $600,000 in revenue. This is not the case either. Most of these dating businesses probably either make virtually no money or only generate a few thousand a year in ad revenue. A few probably generate 10's of thousands, and even less generate hundreds of thousands or even a few million. I believe the majority of this revenue is made up of one dating site, Plenty of Fish. POF is located in the province of British Columbia, Canada. All of the other popular dating services are based in the United States. POF is a private company and no revenue numbers have ever been officially released. That being said they are one of the most successful dating sites in the world so I am sure their revenue for a year is probably 10's of millions of dollars. For comparison just take a look at the Match.com dating site. They are a public company owned by IAC and they reported the Match Group earned in the fourth quarter of 2014, $241.5 million US. That is only for 3 months so in a year they generate around 1 billion dollars. Now the Match Group is made up mostly of paid dating sites while POF is a free service which generates revenue from ads as well as paid upgraded memberships. I don’t expect POF to earn hundreds of millions every year but as I said, with their traffic I do see them earning 10’s of millions.

Is this latest IBSWorld report worth getting? It definitely would be an interesting read but the thing with the dating industry is that it is global. If you are opening a dating service you usually don’t just target one country. You would target continents as a whole like North America or Europe. If you are considering purchasing the document I would probably hold off and wait for the US version to come. The US is 10 times the size in population of Canada which is a much bigger customer base.

This month, Tinder began rolling out its new premium service Tinder Plus in select European markets, and the feedback hasn’t been good.

The popular dating app surged to the top of the online dating market when it launched in 2012, attracting users who had never thought of signing up for an online dating site. Its easy-to-use format and free game-like service offered more entertainment than dating stress, and users flocked to check it out.

But in an effort to make money from this hugely successful endeavor, it was only a matter of time before Tinder’s owners developed a paid model for the app – opting for a premium service over adding distracting in-app advertisements. (Although the company has strategically lent its brand to marketing campaigns, like Gillette’s facial hair survey and Domino’s Pizza Valentine’s Day campaign.)

But Tinder Plus has not been greeted favorably, at least in its initial roll out – and the free service is suffering as a result. Although Tinder Plus is not set to launch in the U.S. until March, and prices are still to be determined, the company needs to find a new strategy - considering the backlash it has gotten in markets where the roll out has already taken place, such as the U.K. Tinder users who are not opting to pay for Tinder Plus and want to stick to the old free version of the app have been leaving bad reviews in the iTunes store (enough to drive the free service’s rating down to one and a half stars).

The problem has to do with new restrictions to the free service. Once a user has swiped a certain number of times, they are blocked for 24 hours from seeing any new profiles, unless they want to pay for the new Tinder Plus service. Since most users log in to Tinder multiple times a day to swipe through matches, this puts a serious hindrance on Tinder’s competitive advantage. Other dating apps that have restrictions on the number of profiles a user can see per day – like Hinge - have been easing up on their requirements, and seeing a surge of new downloads as a result.

With all the promising new free apps coming on the market, such as Bumble (started by an ex-Tinder employee), Tinder will need to think outside the box to keep its market share. After all, any online dating app or site’s currency is their user base. If Tinder loses theirs, then they stand to lose a lot more than the revenue from the premium service. Perhaps they should stick to advertising deals, or instead of taking away features from loyal users, offer more enticing new features.

The latest dating app launch is capturing a lot of buzz - and aimed at marketing to the so-called “dating elite.” If you’re single and successful, The League might be the app for you.

The League has gotten attention because of its latest round of funding. Though founder Amanda Bradford was at first looking to raise half a million according to Time Magazine, she has now received $2.1 million from investors looking for the next Tinder – but without, you know – all the low-brow hook-ups.

The League differentiates itself from its competition by offering exclusivity – you have to be accepted into its network. The acceptance algorithm it uses according to Business Insider “scans the social networks to ensure applicants are in the right age group and that they are career-oriented.” The article goes on to say: “That doesn’t mean they have to be Ivy graduates or work for a big-name firm. But they should have accomplished something in their 20s.”

If you are accepted, you are given a limited number of matches each day at 5:00pm, which The League calls “Happy Hour.” You are also given the ability to refer one friend.

The League isn’t the first app to offer more “quality” matches as opposed to the giant dating pool that is Tinder. Hinge is invitation-only, working from your social media circles and offering a limited number of matches per day, as does Coffee Meets Bagel. The difference is that The League utilizes LinkedIn to find matches, avoiding direct contacts (like your boss) and working with those a little further removed. Some have argued that this blurs the line between business and personal, although eHarmony announced earlier this year they would be offering job-matching services to employers and potential employees.

So far, The League has attracted around 4,500 users from San Francisco. Like Hinge, CEO Branford wants to move slowly, city by city, to build her network in a more thoughtful way. She discovered most couples meet through school or work connections, and she wanted to optimize these already-existing networks (hence using LinkedIn for matching). In fact, she is doing much of the business networking herself by attending parties of tech execs in Silicon Valley and fundraisers in San Francisco. She walks around demonstrating her app and offering bracelets with the app’s logo to attendees.

“It isn’t an app for everybody,” Branford told the New York Times. “We’re trying to hit home that…people do have high standards.”

Tinder who? Dating app Hinge has been on a slow climb uphill, but is gathering a lot of momentum as it goes. The app has broadened its reach beyond the initial major cities, which helped build not only its user base but also its brand as a serious competitor to Tinder.

This month, the app also made Time Magazine’s “Top 10 apps of 2014,” beating out the sensationally popular Kim Kardashian Hollywood despite the fact it made $100 million this year alone. (Tinder did not make the list.) Time took a dig at Tinder, noting: “Hinge sparked a flame in 2014 as it spread to more and more cities around the U.S…[Its] matchmaking connects to your Facebook account to foster friend-of-a-friend connections, a novel concept in a sea of dating apps that prioritize immediate, nearby and mostly anonymous relationships.”

Now Hinge is launching version 3.2, and due to audience demand is starting to change some of its policies, allowing for greater access to matches. Instead of providing potential matches once a day at noon, you can now view them at your convenience throughout the day. (I’m guessing this is to get people to log in more than once a day as opposed to creating a daily traffic jam.)

Hinge is also offering more matches per day. Unlike Tinder which provides an endless array of matches whenever you log in, Hinge is more particular, mostly because it has a more limited network to pull from – namely, your Facebook social circles. In order for Hinge to match you, you have to have a Facebook friend in common. (This probably encourages users to add more Facebook friends to their network, too.)

The app began in Washington D.C. and made its way to major cities including New York, San Francisco and Los Angeles. Hinge has further expanded its territories in recent months – adding St. Paul and Minneapolis, Omaha, Indianapolis, St. Louis, Miami, Tampa, Orlando, Denver, Seattle, Houston and Austin.

According to a recent article in Wired, the company has experienced 500% growth since January. While it isn’t doing Tinder’s numbers in terms of downloads and number of matches per day, the company feels its more measured growth is a better indication of its potential for long-term success.

What is in store for Hinge in 2015? On December 11th, the company announced that it raised an additional $12 million, which will help its expansion into even more cities, including its first launch into international territory in February, when it debuts in London.

Hinge is definitely a dating app to follow. For more details on this dating app you can read our Hinge review.

Dating apps like Tinder have taken the dating world by storm – and some argue have rendered traditional online dating a thing of the past. While sites like Match.com and eHarmony offer matches based on preferences and compatibility, Tinder offers the ability to look at a photo and instantly decide whether or not you’re interested.

In a recent article in Business Insider, eHarmony’s Vice President of Brand Marketing Grant Langston looked at Tinder’s success as a boost to his business. For instance, he’s seen a surge of new subscriptions since Tinder launched in Australia – 2.5 million members, up from 2 million the same time last year.

“The press [Tinder is] receiving is bringing lots of people to the online dating world, including people that find Tinder isn’t the right choice for them,” Langston told Business Insider. “Globally, this trend has helped us tap into new markets and led to an increase in our membership numbers.”

But why are more people choosing eHarmony when Tinder seems to be taking off? For one thing, Langston argues that people who would have never joined an online dating site before find it a little easier to start when they use a dating app. It’s made online dating in general lose its stigma.

Langston also attributes the surge in subscriptions to the high quality matchmaking that is eHarmony’s business model, compared to Tinder’s superficial match-making process. With Tinder, choosing a match is entirely dependent on photos and a couple of sentences, which aren’t much better odds for finding love than meeting someone at a bar. There isn’t necessarily any kind of compatibility – aside from that initial physical attraction.

People who are matched on eHarmony however, are compatible in specific ways. Matches aren’t made via liking the same music or TV shows or someone’s photo, but based on similar dispositions and compatible personalities – which is a bit more complex and relational. Langston says that eHarmony’s matching creates a foundation for a relationship to start, where Tinder is more fleeting, intended for a hook-up. So when people are disappointed with the matches they are meeting through Tinder, they look to other more serious online dating options, which is when they gravitate to eHarmony.

Langston also noted that eHarmony’s growth in the past year has been due to young professionals ages 23-33 flocking to the site, looking for people who are more compatible whether or not they are looking to marry.

According to Langston, eHarmony owes much of its recent success to the fact that Tinder isn’t producing many serious relationships. Then again, it seems that despite the appeal of Tinder, people are looking for something deeper.

Just how crazy are single consumers for Tinder? And how much will they be willing to pay for the service?

The company is betting that certain features will be very valuable to Tinder users who have been requesting them since the service launched. So valuable that the company will be beta testing different price points in the UK, Germany and Brazil, with prices ranging from $.99 US to $4.99 to as high as $20.00 US for the premium version of the app, Tinder Plus.

Tinder Plus will roll out in these three markets first to determine how to proceed in other markets.