Memberships

Last month, Tinder rolled out its new and highly anticipated premium service Tinder Plus, which had been teased in the press with few details for months. But rather than praising its new features, Tinder has been criticized for discrimination. The company charges $9.99 per month for users in their twenties, but once you hit the magical age of 30, the price jumps to $19.99.

Compare this to the price daters pay for a service like eHarmony ($18.95 per month with a 12-month commitment as of this posting), which touts its match-making capabilities, and Tinder seems like a rip-off. After all, the monthly fee for eHarmony includes a lot of filters to help find a more "quality" match - an extensive questionnaire, a detailed profile, and a “communications process” - all aimed at helping you find a lasting relationship. While people do find good matches on Tinder, it's a lot more hit-or-miss.

Still, people seem to prefer the game-like swiping of Tinder. And according to experts, they will probably pay for it – even if they are 30 or older.

A recent article in The Washington Post claimed that there is a war among dating services like Tinder and eHarmony, who are categorizing daters and their behaviors according to their ages. Tinder assumes that younger daters are their target market (after all, the service began with heavy promoton on college campuses before it was unleashed on the greater population). eHarmony however, is going after the more “seasoned” dater, who has had enough with all the hook-ups and wants a real relationship.

The online dating industry is said to be worth about $2.2 billion, with one in ten adults averaging more than an hour a day on a dating site or app. This rise in popularity isn’t a coincidence – it’s gone hand-in-hand with the amount of time we spend on our phones – a near-constant accessory. Tinder appeared at the right time and made online dating seem like a game, and more importantly, removed its stigma.

The popularity of Tinder however has had a cost among daters. There is an assumption that the app is only for hooking up, and that people using dating apps aren’t serious daters. At least, this perception has been what traditional dating sites like eHarmony have been pushing. It founder Neil Clarke Warren told The Washington Post: “They put all their money on one variable: looks. That fills me with quite a few little chills… I have presided over the funerals of more marriages than any psychologist, and it is miserable.”

eHarmony isn't the only one speaking about Tinder's flaws. “There are limits to the percentage of single people who will become active Tinder users and repeating ‘casual daters,'” Morgan Stanley analysts told their clients in February. “And in our view, Tinder is reaching those limits.”

So what does this mean? Is Tinder trying to embrace their young daters as the future of dating, or does eHarmony recognize they will never have a service that’s so addictive and easy to use?

Both services offer very different ways of meeting people, and attract different types of users. But it will be interesting to see who will pay for them going forward.

IAC, the company who is the majority stakeholder in popular dating app Tinder, no longer wants Sean Rad in the driver’s seat. As of late March, the company has named the new CEO who will be taking his place: Christopher Payne.

Payne previously worked for eBay as a senior vice president in the company’s marketplaces division, where he was responsible for the North American market. He also founded Positronic, a search technology company, which eBay acquired in 2008. Before that, he worked for 13 years at Microsoft, including heading its search unit, which was then called Windows Search Live.

“Christopher brings invaluable experience running consumer technology businesses that operate at massive scale,” Mr. Rad said in a statement.

But the change might not be completely embraced by Rad, who was embroiled in a very public sexual harassment lawsuit brought about by former employee Whitney Wolfe. They settled out of court for an undisclosed amount, and she has now launched a new dating app of her own that directly competes with Tinder. Rad will remain President of Tinder and retains a seat on the company’s board. According to reports, he will still be in charge of product and marketing, but Payne will take over everything else.

The spotlight that has been on Rad the past few years has not been flattering, and the most recent scrutiny has come as a result of the new premium service Tinder Plus, which is costing as much as $19.99 US per month for two additional features. Users have asked to be able to use Tinder in multiple cities, as well as to “go back” and swipe right on matches they’d previously turned down. The new service offers these features for a price – but if you want to just keep the basic free service, the company has also put limits on the amount of swiping you can do in a 24-hour period. This caused controversy when it launched in the UK, and the app’s rating in the iTunes store went down to one and a half stars as a result.

Another controversial decision was pricing for the new service, which is based on age. For users under 30, Tinder Plus costs $9.99 per month, but for those 30 and older, it goes up to $19.99, and even more in European countries. Rad says a lot of research went into the pricing, and he stands by what he says customers are willing to pay.

Tinder also plans to launch an ad product, but has not disclosed how this will affect the service or user’s experience. Until now, advertising revenue has come from product placement, but the app has a lot of valuable user information for marketing departments to tap into.

IAC hopes that Payne can refocus Tinder’s business goals and help it grow into a more profitable as well as popular company.

Read our review of Tinder to find out more about this popular dating app.

PlentyofFish might not be making headlines the way Tinder has in the past few months, but its growth continues to be one of the online dating industry’s biggest successes. The company has announced that it hit the 100 million user milestone recently, and also revealed that it’s been a profitable company from its beginning, now with a $100 million run rate predicted for 2015.

POF has relied on a mixture of ads and premium subscriptions for revenue since 2008 (prior to this, ads only). In the last three years however, the company’s user base has shifted from primarily desktop computers to 80-85% using their mobile devices to access their accounts. Other traditional online dating sites have noticed the same trend of their user bases from desktop to mobile.

CEO Marcus Frind admits to website Business Vancouver that “finding love on a desktop computer is quickly vanishing.” Really, the appeal and ease of online dating makes more sense on a mobile device, which can be accessed anytime, anywhere. Mobile access means more users logging in and engaging with each other, a necessity for the longevity of any online dating service.

Frind said: “Since our shift to mobile we’ve seen rapid growth both in terms of users and revenue...Our revenue model has also evolved from one driven by advertising to one driven by paid membership, indicating that, now more than ever, singles are willing to pay for an enhanced user experience.”

For POF, that means their source of revenue has shifted to the mobile space and its premium service. An upgraded membership includes features like detecting when another user views a profile or when a personal message has been checked.

According to Frind, the user milestone and financial state of the company is significant in and of itself - and is no indication of his future plans, though he's never revealed this kind of data before. He’s not looking to take the company public, since he is the sole owner of POF. In recent years, the company also acquired speed dating service Fast Company to complement its offerings, but the main revenue source seems to be POF’s premium dating service.

POF has hit some bumps in the road since its launch back in 2003. For one, Frind refocused the dating site’s image, which had garnered a reputation of being primarily a hook-up site. With the facelift – which included focusing on the mobile app technology and re-branding the dating service for long-term relationships, not hook-ups - Frind seems to have found a winning formula.

The company, which used to employ only Frind, now has 75 employees, and doesn’t seem to be daunted by its mobile competition. POF is holding its own, despite a fickle online dating market.

For more information on this online dating service you can read our POF review.

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.”

Are you debating joining an online dating site? You’re in luck. Now’s the best time to take the plunge.

According to Zoosk, Match.com and Plenty of Fish (the sites that arguably see the most traffic), the Sunday after New Year’s is the biggest day of the year for online dating – with more people logging in and signing up than any other time. While that day has come and gone – at least for 2015 - the excitement hasn’t. The days between New Year’s Day and February 14^th are the peak days of the year for online dating, so it’s not too late.

As it turns out, there’s something about this time of the year that causes people to make changes in their lives, or at least try something new. According to Facebook, January is the month when we see the most relationship status changes (and coincidentally when the most divorce papers are filed). On the flip side, the peak season for engagements is around the holidays, so don’t feel it’s all about “out with the old.”

Another unusual New Years’ trend – there are more conceptions and more condom sales in January than any other time of the year, according to a recent article in The Washington Post. And according to researchers, there’s a post-holiday spike in searches for porn.

While we can attribute it to the post-holiday slump, the weather, or maybe just the thought of the year stretched out in front of us, with summer months so far away – there seems to be something else going on. We want a change. We want our lives to improve. We want more happiness, more excitement, more adventure. We don’t want to feel stuck.

So when the New Year rolls around, we break up with a significant other, we decide to move in with a girlfriend, or we go looking for the right person on an online dating site. We buy gym memberships, take that pilates or yoga class, start that new diet, and in general, try to make some significant changes. The New Year gives us a chance to start again, to wipe the slate clean.

Which is why people might feel more inclined to online date – after all, it takes courage. Perhaps they were waiting for the right time or situation. Or maybe they decide this time will be different. Regardless, you’re in good company. You’ll probably run into a lot of other people trying it for the first time – or maybe the first time in a long while.

Happy dating in 2015!

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.