Online Dating

Online dating sites like OkCupid and Plenty of Fish have had a free model for a long time, which has managed to expand their membership databases and make them tough contenders with paid sites such as Match.com and eHarmony. But now that free dating apps like Tinder have entered the picture and taken the dating world by storm, the paid dating sites have seen not only a decline in membership, but also in revenues.

Is online dating on its way out?

According to a recent article in The Economist, paid online dating sites have reason to worry. In the article, The Economist points out Cupid, who runs subscription-based dating websites such as Cupid.com, UniformDating.com, and LoveBeginsAt.com, announced a $4.9 million loss in the first 6 months of 2014, up 20% from last year. The number of members has dropped, too. At the end of 2012, Cupid’s sites had 113,000 paying members, but by June 2014, they had just 48,000.

While this is a disturbing trend for online dating sites like Cupid – which haven’t really taken off like other paid sites Match.com and eHarmony – it could weed out many contenders in the online dating market over the next couple of years. However in contrast to Cupid's earnings, eHarmony recently reported incredible subscriber growth and better earnings than they have seen in years, due to focusing on long-term relationships and technology that they market as extremely valuable for finding the “right” match.

But what about popular free dating apps and websites like Tinder and old-timer OkCupid? They have attracted users because of their easy set-up and accessibility. They have made online dating less intimidating, (although a little more sketchy according to some users). Are they responsible for the decline in companies like Cupid? 

Not necessarily. Even free apps and websites aren’t so free anymore.

There has been a shift for the free dating apps and online sites to offer “freemium” services – that is, additional features to the basic service but for a price. In the current online dating market, revenue growth needs to happen for investors to remain interested, and that means charging for services once the user base is built. Tinder recently announced that it will launch a premium paid service in early November, while the basic features of the app will still be free. OkCupid started with a freemium model a while ago, charging users who want to filter profiles according to user preferences, or to be able to review and see reviews of other members.

Still others like eHarmony are adding more personalized matchmaking services at a very high price – thousands per year – for those who want a relationship but would like someone else to do the heavy lifting. eHarmony has not reported numbers to see the success of this particular service.

So what does the future look like for online dating? One thing is for sure: free models likely won’t last forever.

It's one thing to speculate about what's going on with eHarmony these days, but it's quite another to hear it straight from the horse's mouth.

Ok, not a horse – Dr. Neil Clark Warren, CEO of eHarmony and instantly-recognizable white-haired man from the eHarmony commercials. On August 22nd, 2014, the 14th anniversary of eHarmony's founding, Warren sent an internal memo with an insider's look at the company he believes could become “one of the most important companies in the history of the world.”

Read the full thing www.onlinepersonalswatch.com/news/2014/10/eharmony-internal-memo.html and check out some of the highlights below:

• After nearly losing the company in 2012, eHarmony is back on track with a five-year turnaround plan.
• It wasn't easy. Board members were asked to step down, employees were fired, vendor contracts were terminated, and an all-new executive management team was put in place.
• Even some of eHarmony's top leadership changed. Grant Langston and Dan Erickson were appointed to the Management Team, and Armen Avedissian was hired as the new COO.
• Just two years in, the company is showing signs of a major comeback. “Instead of losing 100,000 end of period subscribers each year,” writes Warren, “suffering EBITDA losses of 50% every single year, our EBITDA for 2014 will literally be dramatic and the cash in the bank increasing substantially each month.” eHarmony's end of period paying subscriber count has hit an all-time high.
• A major move is in the works. eHarmony's offices will be relocating to prestigious digs on Wilshire Boulevard in Los Angeles.
• The current business plan includes building ten separate relationship businesses with ten separate revenue streams.
• eHarmony intends to scale up by increasing its international reach. The company now employs 190 staff members in North America, the UK, and Australia, but hopes to reach other countries in the future – first in English, then in their native languages.
• Selling the company is definitely not part of the plan. “We do not ever again wish to expose the ownership and management of our business to persons who know almost nothing about relationships,” says Warren, “and have even less commitment to the sacredness of the relationships we are attempting to assist.”

Warren is feeling confident about the future of eHarmony. Maybe even a little over-confident, actually. Case in point:

“Bottom line, as a company, we want to bring about a world in which literally everyone has peace, love, joy, patience, kindness, goodness, faithfulness, gentleness and self-control. Then, we will know that we have reached our loftiest and most idealistic goals.”

Whew. “Idealistic” is right. But all the best to them, and if they get even halfway there, eHarmony will be a rousing success. For more on this dating site you can check out our eHarmony review.

I've written before about how much I love Halloween, especially the horror movies that inevitably fill my Netflix queue each fall.

I've heard a fair deal of horror film criticism over the years, from “It just gives crazy people ideas” to “There must be something wrong with anyone who actually likes watching this stuff.” I always take it in stride, but this year, finally, I have a rebuttal: horror films are dating advice in disguise.

Really? Yes, really.

For the second month in a row eHarmony has sent out a coupon code for our visitors. This one is even better since it gives you 60% off a 6 month membership. it is also available not only in the United States but Canada as well. The code is only valid for 4 days which starts today (Oct 30) and ends at the end of the day on November 2nd, 2014.

The coupon code is: EHSALE60

To use this code you need to create a free profile at eHarmony. This involves giving information about yourself like your age and gender. Once completed you will then need to take the personality questionnaire. This is where the matching magic happens so it is important you take your time and answer the questions the best you can. Depending on if you are filling the questionnaire out on the website or through the eHarmony dating app it should take you from 20 minutes to 40 minutes to complete.

After your profile is finished you will then receive your first batch of matches. At this point you can go ahead and take a look at your matches but communication with them will be limited. If you find any matches you like you can then go ahead and purchase a membership. Just make sure at checkout to enter the code above to receive your 60% off. At this price a eHarmony membership will cost about $25 a month.

To find out more about this online dating site please take a look at our detailed review of eHarmony.

I've got good news for Apple fans. If using the Match app on your iPhone and iPod Touch just isn't enough for you, you can now get your fix on your iPad, too. Match has just announced a brand new, redesigned, fully maximized app for the the larger iDevice with iPad-optimized functionality.

Check out the new app in the App Store or at Match.com and get the scoop on its robust features below:

See Endless Photos With Stream

Stream is an iOS-exclusive feature that uses an innovative algorithm to serve up photos of singles. Stream finds the members closest to you and highlights photos in their profile in addition to the primary profile pic. Because the iPad has a larger screen, Stream can display multiple pictures at once. Ostensibly it's there to help you discover more of someone's personality, but let's be real: you're not looking for personality in the pics.

Make Quick Connections with Mixer

We live in an era of NOW, so Mixer aims to match you with potential partners at warp speed. Using geographic location, another exclusive algorithm, and your favorite swiping technology, Mixer makes it easier than ever to browse profiles.

Additional Features

Stream and Mixer are the big additions to the new Match App for iPad, but it's got plenty of other interesting ingredients to look forward to:

• Facebook sign-in: Signing into your Match.com account just got even easier. Now you can sign in using your Facebook credentials.
• Grid search: The impact of Pinterest is undeniable. Now you can see more singles at a time with Match's enhanced search view, which takes a cue from Pinterest's famous grid.
• Easier photo uploading: The snap-happy can now add photos from three different locations within the app's interface.
• In-app notifications: Stay even more connected in this hyper-connected world with in-app notifications.
• In-app purchasing: For the first time, you'll be able to purchase subscriptions and additional features while you're signed into your iPad app. How did it take Match so long to make it even easier to spend money on their products? Who knows, but you'll be glad you can when you're itching for an upgrade on-the-go.
• More ways to communicate: Your communication options are practically endless in the new Match iPad app. You can chat with potential dates throughout the entire app, from Stream, to your Daily Matches, and even directly from a member's photo. And there's no waiting – you can communicate from the second you start up the app.

According to Bloomberg News, the popular dating website Zoosk is scheduled to go public. The company filed earlier this year, but the latest stock market volatility might delay their offering until 2015.

Zoosk has long touted itself as a major contender in the online dating game due to its large international user base, alongside brands such as Match.com and OkCupid. The company has more than 27 million members across 80 countries, and the online dating market is reported to be worth $1.4 billion.

The appeal to investors goes beyond the revenues to be had in the online dating market. Zoosk company executives are betting on their extensive user base and tracking technology to help leverage their value. Unlike many online dating websites that rely on lengthy questionnaires and profile descriptions, Zoosk’s technology is purely behavior-based. That is, when users of the site navigate through profiles, send messages, or set filters to view other members, Zoosk is tracking this data and responding by providing matches that have similar behavior or seem most compatible. In other words, they are honing in to what users really want by seeing what they actually do online.

The more a user interacts with other members in the Zoosk community, the more Zoosk learns about that person to give them better matches. To the company’s benefit, it also gives them a wealth of data about their users, which is a valuable asset for investors.

Zoosk is also integrated so users can log in no matter what platform they are viewing on – phone, laptop, iPad or tablet, and is the #1 grossing online dating app in the iTunes store, according to its website. But its marketing expenses might be cutting into its revenue.

Website SeekingAlpha.com has been speculating about the opening price the company will decide upon, based on current statistics. Zoosk’s options granted in April 2014 had an exercise price of $7.72, so SeekingAlpha.com assumes the pricing discussions are in the range of $8-$16, which might not be an incentive for investors looking for a deal (and also looking at how the company can bring in more revenue). Right now, the dating app is free, but members pay to use features like messaging, chatting, and connecting with viewers who have viewed their profiles.

The opening price of the company’s stock is a matter of concern, but what does it mean to go public during such a risky market?

“Nobody wishes they went public today or over the last week,” Max Wolff, the chief economist at Manhattan Venture Partners, an investment firm focusing on late-stage private technology companies, told Bloomberg. “A regular bout of intense selling, like we’re seeing now, makes people feel like it’s smart to stay private longer.”

So the next move is up to Zoosk, but the company anticipates that investors are willing to bet on it.

Please read our Zoosk review for more information on this service.