Online Dating

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.

Earlier this year, Tinder co-founder Whitney Wolfe left the company after raising a lawsuit against her colleagues over allegations of sexual harassment and discrimination. In case you need a refresher, Wolfe alleged that she was sent inappropriate messages by one of Tinder's male co-founders, who pursued a romantic relationship with Wolfe and then publicly shamed her. She also says she was stripped of her co-founder title over fears that her age and gender would damage the company's perceived valuation.

Heavy stuff, but it looks like Wolfe might soon get her revenge. TechCrunch reported that she's teamed up with Tinder alumni Chris Gulczynski and Sarah Mick to create a similarly swipe-based dating app they've dubbed Bumble. According to its Facebook page, Bumble is “an exciting, new place to meet people” and “everything you've always wanted from a social discovery app with none of the things you don't.”

Ok, sounds good so far. So how does it actually work?

According to TechCrunch, the app looks (unsurprisingly) much like Tinder. The famous swipe interface is in play, as is the basic large photo/snippet of personal info structure. A key difference is that Bumble appears to use more detailed information than Tinder – including job position, company, college, and graduation year – supporting the idea that it is intended for more serous daters.

Bumble explains its process like this:

• Two people like each other and it's a connection
• The girl has to make the first move by starting a chat within 24 hours
• If she doesn't chat, the connection disappears forever
• But... guys can extend ONE match per day for an extra 24 hours

A 24-hour rule seems a little harsh, but otherwise the idea is interesting. Will flipping the traditional dating dynamic on its head actually work, or will Bumble end up being a service where almost everyone is silent?

Bumble's behind-the-scenes structure also raises some interesting points. Competing with Tinder is no easy feat, but if anyone stands a chance, isn't it a Tinder founder and former employees? They have experience and insider knowledge that no one else has, plus enough public visibility to spread awareness quickly.

Really quickly, as it turns out. A source told TechCrunch that Bumble has already raised millions of dollars from a number of different sources, including social dating service Badoo and a multi-millionaire heir to an oil fortune. Bumble claims the app will be launching any day now, so we should find out soon enough whether that's enough to take on Tinder.

Q3 2014 financial results are in for Snap Interactive, owner and operator of AYI.com, and things are looking rosy. How rosy? Positive operating cash flow, higher revenues, and reduced net loss rosy.

Snap Interactive reports the following highlights in a press release:

• Positive operating cash flow of $0.4 million
• Third quarter revenues increased by 16.5%
• Bookings increased by 16.7% over the comparable 2013 period (a fourth consecutive quarter of revenue growth)
• Positive Adjusted EBITDA of approximately $155,000, an improvement of approximately $1.2 million year over year and $93,000 sequentially
• Net loss of $218,000, an improvement of $1.5 million year over year and $42,000 sequentially
• Increased active subscriber count by 30% in the first nine months of 2014
• New subscription transactions increased approximately 34% in the nine month period, compared to the same period in 2013
• Commenced development of a new mobile-only app for iOS

Snap's Chief Executive Officer, Clifford Lerner, commented, "We are delighted to have successfully achieved the target we announced to the market in January 2014, that Snap would deliver positive cash flow in the quarter ended September 30, 2014. The $377 thousand of cash generated from operations for the quarter ended September 30, 2014 contributed to an increase in cash of approximately 67% during the quarter ended September 30, 2014. The business growth and discipline that got us here has also delivered two consecutive quarters of positive Adjusted EBITDA."

Snap's Chief Operating Officer, Alex Harrington, adds, "Snap also invested significantly in future growth in the most recent quarter. Though the Company expects future gains in AYI subscription revenue, the vision for Snap includes growing from a single application to a portfolio of applications. The Company undertook several initiatives to position itself to scale the business across multiple dimensions."

Those initiatives include launching optional premium add-on features, diversifying the company's marketing sources to expand its reach, increasing the prominence of the company's native mobile apps to consumers, and beginning development on a mobile-only iOS dating app that targets younger users.

Lerner concluded, "We are excited to hit our financial objectives and deliver on our promises to the market. We have an exciting roadmap ahead of us for AYI, with the goal of improving retention and revenue generation. And with the prospect of new application releases, the future is bright for Snap."

Every new dating app on the market is trying to compete with Tinder’s soaring popularity. The only problem is, not many differentiate themselves enough to do it effectively. Most of the new apps have the same basic concept – swiping through photos of people nearby, seeing who you might want to message. Clover wants to do things a bit differently in the latest version of its dating app.

Clover launched back in April 2014 with little fanfare, but recently they have debuted a new feature to try and distinguish themselves from the Tinder-like apps. While many people enjoy “Tinder-ing, ” there is still a gap between what people expect from an online dating site or app and what they actually get – leading to much disappointment. Fortunately, this problem might persuade daters to try new apps – hoping to find the right formula for dating success.

Part of the problem Clover execs noticed with Tinder is that people weren’t actually meeting up in real life – they were just scrolling and messaging. So they decided to make Clover focused on getting to the actual date - but with simplicity and ease like Tinder, rather than complicated matching algorithms and a long communication process like traditional dating sites.

Instead of encouraging people to just scroll through photos, Clover’s newest version includes an “on-demand” feature that allows you to meet matches IRL (in real life) more quickly. It works like this: you pick a date and time in the calendar and where you want to meet (your favorite bar, restaurant, etc.), and the app suggests a potential prospect to join you. You then decide if you’d like to spend your time with him/her. If you do, the date is confirmed and all you have to do is show up on time.

“Our new on-demand service will find people that actually want to meet you and you’ll be able to find a date as easy as it is to order a pizza or a cab,” says Clover CEO Isaac Raichyk.

Raichyk argues that it is difficult to actually go on a date using other apps or even dating sites like OkCupid. Just because people are matched doesn’t mean that they will make the effort to meet. So why not do it more organically by confirming a date and time to see if there’s chemistry between you in person rather than waste more time texting back and forth for nothing.

While this sounds really good in theory, the app will have to prove itself in practice. The premium service is free for users to download and test for a week, but after that, it will cost you $9.99 per month - a hefty fee compared to most apps, but cheaper than online dating subscriptions and personal matchmakers. There are also certain pay-to-play features like a $.99 charge to change your name/ handle. The new on-demand feature however will be included in the free version.

Spark Networks, owner of many special-interest online personals sites including ChristianMingle.com, JDate.com, and BlackSingles.com, has reported financial results for the third quarter ending on September 30, 2014.

It was a time of major transitions for the company. The majority of the Board was removed in July. The new Board was primarily focused on right-sizing the corporate cost structure and improving marketing efficiency, two goals which were, according to Executive Chairman Michael McConnell, largely accomplished. “Improved marketing efficiency at ChristianMingle drove subscriber acquisition costs ('SAC') in September that were less than subscriber lifetime value ('LTV') for the first time since January 2012,” he reports.

On the numbers front, Spark Networks presents the following highlights:

• Contribution of $9.0 million, highest since Q1 2009
• Adjusted EBITDA of $2.5 million, highest since Q1 2010
• Average paying subscribers of 257,679, a sequential decline of 6%
• Revenue of $15.0 million, a decrease of 14% compared to the year-ago period and a 5% decrease compared to the prior quarter

As you can see, it's a mixed bag. The drop in revenue was primarily driven by a 14% decrease in average paying subscribers, reflecting a year-over-year 15% and 9% decline in average paying subscribers for the Christian and Jewish Networks segments, respectively.

On the up side, direct marketing expenses in the third quarter of 2014 were down 52% compared to the year-ago period and 24% compared to the prior quarter. Contribution in the third quarter of 2014 was $9.0 million, an increase of 90% compared to the year-ago period and a 14% increase compared to the prior quarter. In both cases, Christian Networks was the primary driver (improved marketing efficiency and a better mix within the paying subscriber base, to be more specific).

Looking forward, McConnell says the company's primary objective is to improve product functions and features across all platforms. A JDate iPhone app was recently approved and a ChristianMingle app should be on its way soon. Spark Networks is also looking to leverage its presence in Israel and outsource some other development activities in order to speed up product development.

"In summary,” says McConnell, “much has been accomplished in the last several months, but much work remains. The team has embraced our future with a sense of urgency and focus. We look forward to driving changes that create a terrific experience for our customers and support the core communities we serve."

Dating website OkCupid has always been considered more cutting edge among the most popular online dating sites, and it is maintaining this effective strategy. Now, the company is offering its users even more choices when it comes to how they gender-identify, and what their sexual preferences are.

OkCupid’s main appeal is its approach to online dating, much more progressive than traditional sites, and also more fun to navigate. People are encouraged ask each other questions and be more original and unique without being forced to just fill in the blanks for their profiles or being walked through a long questionnaire.  

In other words, instead of being “guided” through a process, OkCupid users have always been given a little more freedom to interact and express themselves how they’d like. This works for users, and it works for OkCupid, too. The company started a blog using data from its own user base that reveals online dating trends and preferences that have come in very handy over the years. It helped OkCupid to offer a premium paid service based on the things people want – like filtering out people who don’t fit their physical ideals. One of its founders recently published a book with his findings about patterns and habits of people who online date, gained from tracking its own users.

So it is only fitting that OkCupid would be on the forefront of offering more choices when it comes to dating and how people describe themselves and what they want. After all, we don’t fit into neat little boxes, especially when it comes to love.

OkCupid’s first new offering allows people more choices for how they identify themselves, other than just as “man” or “woman.” Gender has now been extended to include agender, androgynous, cis man, cis woman, genderfluid, gender non-conforming, hjra, intersex, trans man, trans woman and two spirit, among others.

A person’s sexual orientation is no longer limited to straight, gay, and bi-sexual. Now users can choose among an abundance of choices, including asexual, demisexual, heteroflexible, homoflexible, pansexual, queer, questioning and sapiosexual (one who finds intelligence to be the most important sexual trait).

Right now, these options have only been rolled out to a limited number of users, and the company hasn’t announced when (or if) they will be extending it to all users.

According to website NewNowNext, users were notified of the change in a message from OkCupid: “You’re part of a select group with access to this feature. Keep in mind as we continue to work on this feature: For now, editing your gender and orientation is only supported on the desktop site.”

OkCupid has a reported 3.5 million user base.