Dating Services

The business of online dating continues to grow, as more apps enter the market and compete for funding from investors ready to cash in on the next Tinder. The latest financial news in the industry involves popular gay dating app Grindr, who just announced that Chinese online gaming titan Beijing Kunlun Tech has taken a “majority investment” in their app.

According to The New York Times, Beijing Kunlun’s stake in the company will be about 60%, with the remainder to be owned by Grindr employees and Joel Simkhai, the company's founder. The valuation of Grindr seems to be about $155 million according to the same article, although the actual amount invested was not disclosed.

Interestingly, Grindr had not raised capital from outside investors prior to their deal with Beijing Kunlun. The company was started and funded by Simkhai himself, who began with only a few thousand dollars. He grew the company and the brand: according to PC Magazine, the average user spends up to 54 minutes a day on the app – a figure that exceeds Facebook’s 42 minutes and Instagram’s 21 minutes.

According to leaked documents back in August, Grindr predicted pulling in about $38 million for 2015.

According to Financial Review, Carter McJunkin, chief operating officer of Grindr said in an interview: "We have users in every country in the world, but in order to get to the next phase of our business and grow faster, we needed a partner," McJunkin added that the relationship made sense for Grindr because of Beijing Kunlun's digital expertise, and because the company agreed to let Grindr's founders continue its operating structure and retain its current team.

Beijing Kulun saw Grindr as a good opportunity to expand beyond its core gaming focus, into more of an overall “lifestyle” brand. 

It’s interesting to note that Beijing Kunlun’s choice to purchase stake in a gay dating app seems incongruous, since homosexuality is still a taboo subject in China, and many gay people face widespread discrimination. It is not clear if Grindr intends to expand its business into the Chinese market, but there would be social stigma to overcome.

Beijing Kulun might see Grindr as a sound investment above all, despite its target market. Or perhaps they are paving the way for other Chinese investors to expand and reach out to invest in more diverse, successful brands outside of China. "We have been very impressed by Grindr's progress to date and are extremely excited about the future of the company," Yahui Zhou, chairman of Kunlun, said in a statement. "We will continue to seek out and invest in high-quality technology companies led by top-tier management across the globe.” For more information on this gay dating app you can check our our Grindr Topic.

The 2015 Dating Sites Reviews Single's Choice Award poll was closed for voting at the end of 2015. In the 3 months it was open to voting the poll received 459 votes which is exactly 100 more than last year (which is a little weird). This poll is design to find out what our visitors feel is the best dating service. For this award we are looking at the top free dating site and/or app. The top 8 free dating services where picked by the Editor's to be contenders. In order for these dating services to be selected they needed to meet a number of criteria. This includes having a review on Dating Sites Reviews, having the core features of the service being free (including, profiles, searching, and messages), and being a service which is popular with our visitors.

The recipient of the 2015 Single's Choice Award for a Free Dating Site is Plenty Of Fish (POF). This is the seventh straight year in a row that POF.com has won this award. In 2015 POF received 134 votes which is 29 percent of the total votes cast. POF came in a little stronger this year as it received 4 percent more of the vote compared to last year.

Here are the final results of the poll:

1. Plenty Of Fish (POF)
2. OkCupid
3. Tinder
4. Meetup
5. DateHookUp.com
6. ChristianDatingforFree.com
7. Mingle 2
8. Craigslist

The top 3 dating services received 70 percent of all votes. POF received 4% more votes than OkCupid which came in second place at 24.8 percent. Rounding out the top 3 was Tinder which had 16 percent of the votes which is 75 votes in total.

Read our review of PlentyOfFish.com for more information about this online dating service or visit Plenty of Fish directly.

Online dating is big business after the holidays. In fact, user activity remains consistently high until Valentine’s Day, according to reports from online dating veteran websites like Match.

But it’s also a huge time for dating apps, especially Tinder – who had its biggest growth day in its history. On Sunday January 3rd, Tinder execs revealed that the app experienced the most downloads and the most growth of active users in a single day - ever. (Coincidentally, most online dating sites report that their biggest, busiest day of the year is the Sunday after New Year’s, when people are faced with the end of holiday revelry and the return to work.)

Needless to say, Tinder must have seen this spike coming and decided to take advantage with a new feature, which came in the form of a push notification. The notification alerted users when there was 2x to 3x higher rate of matches in their local area. It said:

Wow! Tinder is on fire in your area! Chances of a match are 3X higher right now (flame emoji)

The push notification was an interesting choice for Tinder execs to make, since the app prides itself specifically on not sending unwanted messages to its users, keeping the interaction as seamless as possible.

Tinder CEO Sean Rad looks at the feature as a win-win for users. “When there is a spike in engagement on the platform, we want to let users know so that they can take advantage of that moment,” Rad told news website TechCrunch.

The match rate is the number of swipes it takes to get to a match. When there is more engagement, the likelihood of matching with someone goes up. In a way, it’s a self-fulfilling prophecy. If you tell someone that the match rate is 2-3 times higher, then likely they will keep swiping (engaging) until they get a match.

“The most fascinating thing about this type of notification is that, by notifying users when those peak moments are happening, it increases the overall success rate for our users,” Rad told news website Tech Crunch. “It has a compounding effect and produces even more activity.”

The match alert is the latest in a series of moves Tinder has made to overcome its hook-up reputation and concentrate on more long-term matches. The company has also been sharing stories and photos of happy couples who met on Tinder, including a tweet from a couple on their wedding day, hoping to show proof that the app is helpful for finding long-term love.

Tinder faces competition from new services like Bumble, which lets the women call the shots first, and Coffee Meets Bagel, which provides one match a day to make sure people aren’t just mindlessly swiping. For more on this dating app, please read our review of Tinder.

A year after laying off 15% of its staff, Zoosk is ending things with another 40 employees. The break up will see the San Francisco-based dating platform part ways with 1/3 of the company.

Despite $61 million in funding, Zoosk has hit hard times. The old-school web dating app first hit it big building extensions for MySpace, Facebook, Hi5, and Bebo. Two years after launch, it reached 40 million registered users and 12 million active users. Bessemer Venture Partners, ATA, Crosslink, and more offered millions in funding. Other money came from selling subscriptions for premium features, like additional ways to contact dates.

Despite its early success, Zoosk has struggled in recent years. The company has found it difficult to adapt to the changing, increasingly mobile-focused times. Apps like Tinder, Hinge and Coffee Meets Bagel now dominate the market, edging out older dating services that haven't evolved to incorporate modern technology.

Zoosk has felt the sting severely. The company was forced to abandon its plans for an initial public offering in 2014, after filing for a $100 million IPO. At the same time, its founders stepped down and former CFO Kelly Steckelberg became CEO. The management shuffle was followed by a layoff of 15% of the company in January 2015.

Circumstances have failed to improve, leading Zoosk to its latest decision to let go another 40 team members. Steckelberg gave TechCrunch this statement:

“This reduction will increase operating efficiencies and streamline responsibilities as we prepare to bring several innovative product announcements to market in 2016. Our optimism for these developments that we expect to positively impact our growth does not diminish the reality of today’s news felt by our staff. We are committed to treating the impacted colleagues with respect and support during this transition.”

Zoosk is not the only one suffering in the current climate. As funding becomes harder to find, a number of startups are having to part ways with staff to stay in business. The online dating market is particularly difficult to compete in, as there are so many options for consumers.

Britanny Carter, an analyst for the research firm IBISWorld, spoke to the Wall Street Journal about the issue. “In terms of revenue, the online-dating industry has matured," she said, "but there are too many players and not a lot are generating sufficient revenue for these sites.”

Unless Zoosk has a major overhaul in store – something that can drag the dated service back into relevance – it may be doomed. It's best hope now could be a buyout from a bigger dating company. For more about this service you can read our review of Zoosk.

It's the busiest time of year for online dating. The stretch between Christmas and Valentine's Day is peak season for tech savvy singles. Some are scoring big while others are striking out.

With any luck, you're in the first category. Your date card is so full it's practically become a full-time job. Things are looking up for 2016.

Or maybe not. Maybe you're in the second category, sending message after message into the ether and getting nothing back. That's no way to begin a new year. Fortunately, the folks at Zoosk have compiled some simple suggestions for changing your luck in their "7-Step Guide to Landing a Date."

Here are the highlights:

1. Suggest a date activity if you're really into the person. A recent survey of 3000 Zoosk members revealed that suggesting a movie date increases the response rate to your messages by 91 percent. Other compelling keywords include the beach (59 percent) and a park (39 percent).
2. Send messages in the morning if you're a man and in the evening if you're a woman. Men increase their chance of a response by 10 percent if they send messages between 9 am and 10 am. Women, on the other hand, are nocturnal creatures. Their messages are best sent between 10 pm and 11 pm.
3. Reply within 24 hours. The internet isn't exactly known for its patience. Of those surveyed by Zoosk, 94 percent said they expect a response within 24 hours. Playing too hard to get can easily backfire when more options are only a swipe away.
4. Highlight your individuality. What makes you unique? Your special characteristics are what separate you from the vast sea of singles online. Embrace your glasses, flaunt your tattoos. Just stay away from overtly sexual messages, which Zooskers give a digital thumbs down.
5. Watch the character count. Men aren't picky when it comes to message length, but women expect more effort. Forty percent of the female users Zoosk surveyed said they prefer messages that are longer than the 140 characters of a tweet.
6. Expect to send multiple messages. Establishing rapport online takes more than a single sitting. Around half of singles polled said they exchange five messages before meeting a new suitor in person.

What's step 7, you ask? Start adding dates to your calendar.

Follow Zook's seven rules and you'll set yourself for a 2016 that's brimming with romantic possibilities.

The 2015 Editor's Top Pick - Over All Award recipient is POF.com. This is the hardest category for us to determine and it was a real close call this year but in the end we at Dating Sites Reviews felt Plenty of Fish deserved the Editor's Top Award.

2015 was a big year for the largest free dating site Plenty of Fish. The biggest POF news (and not the reason for the award) is IAC purchased the company for $575 million. Why did the owners of Match.com spend so much? It has to do with the amount of users POF has, and how well they interact with each other. Since 2003, POF has had more than 100 million singles from around the world register for the dating service. Everyday more than 3.5 million singles log into the service to search for and communicate with other members. In total this generates about 9 million conversations a day and results in every 120 seconds a member confirming to POF that they have started a relationship.

For the last 12 years POF has remained popular due to the fact that it not only has free communication but because the service is easy to use. It does have a paid upgrade option for additional perks but the service's core features (profile, searching, and sending messages) have remained free. POF also continues to pour resources back into the service and is constantly tweaking their matching algorithm to produce better results. This is also noticeable in the POF dating apps as well, by the new features you see with every update and by how easy they are to use.

Read our review of Plenty of Fish for more information about this online dating service or visit Plenty of Fish directly.

This Year's Runner Up for this award is: Match.com