POF (Plenty of Fish)

Twelve years after Markus Frind founded PlentyofFish as a side project, the company sold to Match Group for $575 million. That's an impressive price for anyone, but it becomes astonishing when you consider the site's origins.

Frind launched POF from his apartment and, for the first six years, didn't hire any employees or raise a cent of venture capital. That would be bad news for any other company, but Plentyoffish.com was already getting 2.2 billion page views a month and generating millions of dollars in revenue.

The risky move turned out to be a brilliant one. Except for the IRS, Frind didn't have to share the funds with anyone. He had money to continue his business, travel the world, and buy anything he could imagine. Match tried to purchase the company for a decade, and Frind could easily say no.

He continued to grow POF on his own. At the outset there was no advertising budget, no business plan, and only a basic website. Frind's experience was practically non-existent, so he taught himself about marketing, business development and product. It wasn't until 2009 that he hired his first developer – and he was still running the business out of his apartment at the time. It didn't matter. By then, he had 10 million users. To say it happened “against all odds” is almost corny.

Frind's perspective changed last year, when his daughter Ava was born. “Having a 10-month old daughter, you start measuring time in different increments,” he said in an interview. “Every day you see something’s different – she’s trying to take her first step, or she’s crawling around. Whereas before you measured the company in milestones in terms of the revenue or user growth or some kind of company target.”

Now, having sold his miracle online dating company to rival Match Group, Frind is contemplating the future. He says he has already bought everything he could personally want, so many hope he will instead use his wealth invest in the startup scene in his hometown of Vancouver.

“I think he will invest a lot more and help a lot of businesses,” said Arash Fasihi, founder of online furniture retailer Cymax Stores Inc., to The Globe and Mail. Fasihi's company recently received an $18 million investment from Frind and made him a director.

Vancouver venture capitalist Boris Wertz has similarly high hopes: “He’s a smart guy and he knows how to deploy money, and hopefully some of that will flow back into the tech ecosystem.”

For more information on Frind's dating site your can read our Plenty of Fish review.

Musicians are having to find new and more organic ways to promote their new albums, since people are discovering content in different ways outside of traditional radio. To capture new – and especially younger – fans, artists who are serious about promotion are now looking to dating apps, and finding some success.

Millennials are the largest group of consumers of music, and they also tend to be on dating apps like Tinder and Grindr. So it only makes sense that music and dating apps would eventually come together.

Some recent examples: Madonna's latest album was advertised on Grindr, a dating app for gay men, while Jason Derulo debuted a music video on Tinder. PlentyofFish was one of the first dating sites to link itself to an artist, by making an appearance in Derulo’s 2010 video for his song “Ridin Solo.” POF also worked with Lady Gaga during a U.S. tour, offering fans a chance to win tickets and backstage passes.

Other popular dating sites are linking to musicians, too - Mariah Carey premiered her music video for the single, "Infinity" via her new profile on Match.com, and DJ-producer Afrojack answered questions about love and relationships for eight hours on Match’s Twitter account to promote his new single.

The latest musician to take advantage of the wide reach of dating apps is Zedd, the Grammy-winning DJ-producer. He worked with Tinder to promote his album, "True Colors," released last month, by setting up his profile on the dating app. While Tinder users searched for dates, they would come across Zedd's promotional profile. They could swipe left or right, as with any other potential match. But instead of messaging him or setting up a date, if they swiped right, they could purchase his new album at a discounted price of $3.99 (compared to $7.99 on iTunes).

According to a recent story from Associated Press, “True Colors” debuted at No. 4 on the Billboard 200 albums chart its first week with 39,000 copies sold. While no specifics were given about how many sales were the direct result of Tinder users swiping right on Zedd’s profile, chances are the app had something to do with the album’s popular debut.

According to Tinder, eighty-five percent of its users are between the ages 18-34, and the average user spends about 11 minutes on the app each day — one of the main reasons artists are looking to work with Tinder in particular. It makes sense. Since users’ engagement with dating apps is pretty high, artists have their attention, at least for a few seconds, which is long enough to swipe right and learn more.

Did you know crafty ladies love Houston, men in Seattle seek outdoor adventure, and intellectual singles flock to Washington, DC?

It's hard to put much stock in the interests section on online dating profiles. Occasionally you may connect with something, but mostly it's a lot of boring clichés (“I like traveling and hanging out with my friends”). All most of us use the interests section for is scanning for red flags and looking for microscopic signs of compatibility.

Well, it turns out those interests may serve a more important purpose. Using an interest-based algorithm, PlentyOfFish examined the dating profiles of more than 10 million singles over the age of 21 to group them into personality types. The results were released as a new research study called PlentyOfPersonality.

The research identified the top 20 personality archetypes, based on corresponding interests, of singles in 11 major American cities. The data was then broken down by city and gender to asses how differences and similarities in the personality types might impact dating habits.

The 20 personality types are: Artist, Bar Game Buff, Cultured Urbanite, Curious George, Eternal Optimist, Family First, Fast and Furious, Happy-Go-Lucky, Health Buff, Intellectual, Live Event Fan, Mainly Mainstream, Pinteresters, Romantic, Salt of the Earth, Social Butterfly, Sports Fanatic, Weekend Warrior, Well-Rounded, and Outdoor Adventurer.

Scanning the data, it's clear that some cities have greater potential for compatibility than others. Men and women in Detroit, for example, sync up on three of the four top personality types: Weekend Warriors, Eternal Optimists, and Bar Game Buffs.

On the other hand, singles in Boston may have a hard time finding their matches. Female residents are Cultured Urbanites, but most men are partying Weekend Warriors. A similar split is seen in Seattle, where men are Weekend Warriors and Outdoor Adventurers, but women fit into the quieter and more creative categories of Pinteresters and Artists.

So what we can we learn from POF's personality study?

First, don't skip over the interests section. You may be tempted to say “I dunno,” “Ask me,” “Too many to list here,” or leave it blank, but you're missing a valuable opportunity.

When you do fill it out, consider your answers carefully. Discerning visitors are using your interests, consciously or subconsciously, to construct a portrait of your personality. Make sure it's an accurate representation of who you are and make sure the statement it's making is positive.

If all else fails, perhaps it's time to pack up and move. Love could be waiting across state lines. For more on the dating service which conducted the study, you can read our Plenty of Fish review.

On Tuesday Match Group which is a subsidiary of IAC/InterActiveCorp purchased PlentyofFish Media for $575 million in cash. The deal is expected to close by the end of the year. Markus Frind which is the founder and sole owner of POF started PlentyofFish.com way back in 2003. It was a side project for him to learn a new programming language. It quickly exploded and by 2008 he was earning $10 million a year from the dating site with only a couple of employees. Early this year POF.com reach a milestone and hit 100 million users. The company also predicted it would earn $100 million for the year 2015. On its newly launch responsive mobile site POF currently reports the following statistics:

• 3.5 million singles log into POF.com daily (through the website and dating apps)
• Those same singles generate more than 9 million conversation every day
• From those conversations 1 million relationships are created every year

In the past two years I have heard several rumors about Match being interested in purchasing POF.com. I had heard around $300 million was offered at one point, but it was turned down. For a site earning $100 million in a year with no debt and it’s only real expense is it’s 75 employees that was a pretty low offer (if it is true). Obviously there was some negotiations going on which resulted in Markus walking away with over half a billion dollars. Funny enough, the general rule of thumb in purchasing a website (now these are much smaller sites [smilely: ;]]), is that it is worth about 4 years’ worth of the income it generates. I guess from using this purchase as an example, that the rule is not too far off!

The Match Group has purchased a number of dating services over the past 6 years:

• In 2014 Match purchased How About We
• In 2012 Match buys DateHookup.com
• In 2011 OkCupid was bought by Match.com for $50 Million
• In 2009 People Media was acquired for $72 Million

Combining all of these sites along with Tinder (which Match had funded pretty early on) and adding POF to the mix, this will make the Match Group the undisputed power house in dating online and on our phones for years to come. Acquiring POF will also make the Match Group’s proposed IPO that much more enticing to investors when it happens, which is most likely near the end of the year.

POF is currently a free dating site that offers a paid subscription for an upgraded membership. This upgraded membership offers a number of features like no ads, viewing extended profiles and seeing who has viewed your emails. I am curious to see if the Match Group plans any tweaks to this formula. If they change POF to a completely paid dating site like Match.com (which I highly doubt by the way), then I am sure POF users would be up in arms. I have a feeling they will leave POF.com pretty much the same for now and let it continue as is, in the same way Match Group let OkCupid continue to operate.

Plenty of Fish announced on July 1st that POF.com now is a responsive website. With regards to websites, the term “responsive” refers to the websites ability to change the layout of the site on the fly to better accommodate the screen size the person is using to view the website. For example someone viewing a website on a laptop could see a site that has multiple columns with a lot of text and images. When someone views the same website on their phone it most likely would be one column with less images and a bigger text font used to make reading easier. There is more to responsive but that is the basics of what it does.

Before it was responsive POF.com would serve the same webpages for mobile as desktop. This wasn’t bad on a tablet as the dating site is very usable on this size of screen. On a phone though a user would have to scroll around the screen to see different parts of the page. Going responsive allows mobile users to have a more app like experience when using POF.com.

For more on this very popular dating service please read our POF review.

After two years together, POF has ended its relationship with speed dating and singles event company FastLife.

POF CEO Marcus Frind saw a bright future for the union in 2013. "The direction of online dating is undeniably headed towards a merging of the online and offline worlds,” he said. “Currently our users host over 300 events worldwide each month. Now more than ever, we understand the importance of offering singles innovative, new ways of connecting face to face."

The plan was for POF to invest $30 million into live events over a period of 12 months. Competition in the arena was ramping up. Mega-companies like Match had introduced live events. Services like HowAboutWe were focused on getting online daters off their computers and into the real world. Location-based apps that linked nearby singles for insta-dates were becoming increasingly popular.

The time seemed right for POF to team up with FastLife, a company that held around 2,400 events a year in the USA, Canada, Australia, New Zealand and the UK. FastLife's exceptional service and venues generated annual revenue of ~$2.5 million. Could rounding out its offerings be what POF needed to take things to the next level?

The answer turned out to be 'no.' POF dropped FastLife in June 2015, 21 months after acquiring the company and 2 months after closing eVow. eVow had been launched to compete with dating sites focused on long-term relationships, but proved unsustainable after 5 years.

Now that POF has lightened its load, what's next for the dating site?

Like many of its competitors, POF is focused strongly on mobile. Frind told an interviewer at the 2015 Traction Conference in Vancouver that 90% of POF's business is now conducted on smartphones. POF is concentrating on keeping its brand strong, so mobile users will continue to choose it over other options in the app store.

POF is also concentrating on maximizing messaging. The more messages a user sends, the more likely they are to get a response. The more responses they get, the more likely they are to go on dates. The more dates they go on, the more likely they are to enter a relationship and have a successful online dating experience. Currently, around 30 million messages are sent each day on POF.

As far as revenue is concerned, POF has opted for a “freemium” model. Rather than a traditional subscription service, POF offers its basic features for free. Users can then choose to upgrade or add features for additional fees. With more than 100 million users and a rumoured $100+ million in annual revenue, it's hard to argue with the POF approach.