Milestones

If anyone knows how to crack the code of online dating it’s Greg Liberman. Liberman has been president and CEO of Spark Networks since 2004, giving him more insight into the industry than almost anyone else in the biz. He spoke with The Forward in early February about the tremendous success of JDate, the Internet’s most popular Jewish dating service.

Liberman chalks the company’s success up to one simple thing: “this company was built out of a need.” And not just any need – one specific person's need. One of the founders had recently been divorced and was looking to expand his social circle of single Jewish women. Out of that quest, JDate grew organically.

Once the site had gotten its start, it set itself apart from the competition by creating a strong culturally focused community. “Religion is obviously at the core,” says Liberman, “but the majority of the members are Conservative and Reform and interested in a more culturally based identity.” The site provided a meeting place for Jewish singles who wanted to continue the traditions they were raised with, but weren't interested in a heavy emphasis on faith.

When asked how things have changed over the course of JDate’s history, Liberman nominates mobile dating as the decade’s biggest innovation. Mobile is becoming an increasingly important part of our lives, and that includes our love lives. “We saw in 2013 a 114% increase in log-ins via mobile,” Liberman says of JDate. “People are connected all the time, and for us it’s really important. I mean, it’s a huge opportunity for us to continue to drive our mission.”

Mobile isn’t the only change in store for JDate. The site announced the launch of a new marketing campaign on Valentine’s Day 2014 that further stresses the “J” half of its name. The rebranding initiative – JDate’s first – is called “Get Chosen.” Liberman hopes that it will help strengthen the Jewish community and ensure that Jewish traditions are passed on for generations to come. He calls it a “fun, living, breathing campaign” designed to “remind Jewish singles of the cultural ties, not just the religious ones, that make dating, and ultimately marrying, someone else who is Jewish so special.”

The multi-platform campaign will begin immediately across various channels, including print, digital and social. In addition to adding the tagline “Get Chosen” to the logo, JDate revealed a new homepage design for the website. The company also plans to run digital billboards in New York’s Times Square and a street sign campaign throughout Chicago. Other creative elements, including television and web videos to support the “Get Chosen” theme, will roll out later this year.

Zoosk's domination of the online dating scene isn't ending any time soon. The online dating site, which first rose to popularity by making romantic links between Facebook users, is preparing to create an important connection of its own - with investors in public markets.

Zoosk was founded in 2007 by Iranian entrepreneurs Alex Mehr and Shayan Zadeh, who met as students at Tehran's Sharif University of Technology. They moved to the U.S. in 2000 and launched the company seven years later. Zoosk acquired users quickly by tying itself to Facebook and the hundreds of millions of users who already used the ubiquitous social networking site to post personal information and photos. It's since branched out to mobile, the most rapidly-growing sector of the dating market, and has raised more than $60 million from investors including ATA Ventures, Canaan Partners, Bessemer Venture Partners and Crosslink Capital.

Zoosk is now taking steps to go public in 2014. The San Francisco-based company has picked Bank of America to lead its initial public offering, along with Citigroup and Royal Bank of Canada. Oppenheimer & Co. and William Blair & Co. will serve as co-managers.

In the $2.1 billion dating services business, Zoosk has a 2.9 percent market share, trailing behind Match.com and eHarmony in the competitive industry. Zoosk currently has more than 40 million active members, a success rate that can be attributed in part to the additional features the site offers. The challenge faced by most online dating sites is that, if their service is successful, their users have no reason to continue using it. Forward-thinking companies like Zoosk are counteracting that problem by offering other social features - like sending relevant discounts to couples or making date suggestions - to keep users coming back.

The approach is working. Close to 4,000 businesses compete in the dating services market, according to IBISWorld, yet despite that heavy competition, Zoosk said in May that its first-quarter revenue topped $40 million and that visitors to the website more than doubled from the prior year.

There's no question about Zoosk's impressive track record, but there are some questions about the success of these kinds of sites' attempts to go public. Following Facebook's troubled IPO in May 2012, there was a lull in social-networking deals. But Twitter Inc.'s debut last month seems to have put some people's fears to rest, and Twitter is now up 89% from its IPO price. Whose footsteps Zoosk follows in remains to be seen.

HowAboutWe is about to take over the world - literally.

The dating service has announced the launch of the first internationalized versions of its iOS application. Though the web-based version of HowAboutWe already had international users, the app was only available in English, significantly limiting its reach. Now it's available in 15 new languages that cover more than 30 countries, including France, Russia, and Japan.

And it gets even better. The company says it's also making all features in the mobile application available for free to international users. (Sorry, America, you still have to pay. Premium features for United States-based users, like unlimited membership, will continue to cost between $8 and $35 per month.) In addition to full access to all of the exclusive features offered to American HowAboutWe members, global users will also enjoy:

• Browsing date ideas suggested by local singles
• Finding people who want to meet in person
• Checking out profiles and full-screen photos
• Posting their favorite nearby places as date ideas - instantly
• Seeing who's online now, nearby

When asked why the company was choosing to offer services entirely for free, HowAboutWe's head of PR, Jade Clark, explained that their primary concern is to extend their reach as a brand and become an established figure in a new market before weighing monetization options.

HowAboutWe isn't just planning to bring its emphasis on real-world activities to the international stage. Half a million members are signed up for HowAboutWe for Couples. When asked about mobile and international plans for the couple's product, Clark adds that the company is working to expand their mobile offerings and plans to make some major announcements in the early parts of 2014.

To celebrate the launch of the app around the world, co-founder and co-CEO Aaron Schildkrout posted a guide to his blog called "10 Things You Need To Know Before Internationalizing Your App." I'll spare you the details, because many of them are quite technical, but Schildkrout did speak of the challenges that come from language barriers and different cultural expectations. His final piece of advice is something we can all understand, regardless of your location: "It will always take 3x longer than you think!"

I'm intrigued by this new development. Just think of all the opportunities for cross-cultural connections that might now be possible. Imagine being an American tourist in a foreign land, connecting with locals (and possible tour guides) using the same dating app you're already familiar with. It could add a whole new dimension to travel.

For more on this service you can read our HowAboutWe review

It seems that the desire for online dating has reached even the most religiously conservative societies. According to The Jerusalem Post, the Palestinian Authority's Supreme Council has legalized online dating, but with a catch. Daters must abide by Shari'a rules, which means communication between members must be with the intent to marry.

Though Islamic scholars have dismissed online dating in the past, the council stated that the mingling of men and women online was now "a central characteristic of our time" and "unavoidable." This opens the door for many Muslims to date outside their social circles and provides more opportunity for meeting people than ever before.

Islamic dating websites have emerged in recent years, modeling themselves after other popular religious dating sites like JDate. But many Islamists, including Palestinians, already converse freely over social networks like Facebook and Twitter, according to The Times of Israel. It seems that allowing online dating was the obvious next step.

There's big news coming out of the Coffee Meets Bagel camp: the free online dating site that provides one match every day at noon is expanding nationwide and releasing an iOS app.

Coffee Meets Bagel launched in New York City in 2012, when three sisters decided there must be a better way to date in the Big Apple. They created CMB based on three guiding principles:

1. Unless you want to tell others, your dating life should remain private.
2. Your friends are the best conduits for your dates.
3. Meeting quality people doesn't have to be so awkward or complicated.

Users sign up through Facebook and receive one match - a.k.a. a 'Bagel' - every day at noon that is somehow connected to them. Members then have a time limit in which to respond with a simple LIKE or PASS. If all goes well, Coffee and Bagel are put in touch via a private company texting line and magical breakfast-y sparks will fly.

Co-founder Dawoon Kang says that with the new iOS app, Coffee Meets Bagel is hoping to find the happy medium between traditional online dating services and the current trend of more casual dating apps. "We want to deliver you a very good-quality match, one that you would expect from subscription services, but with the fun of mobile apps," she told TechCrunch.

Coffee Meets Bagel is full of gamified elements that are bound to work well in a mobile context. Members earn 'coffee beans' in the app when they perform certain actions like inviting friends or filling out information. They can then use the beans to purchase special features, like the ability to return to a missed match or a score and ranking. Coffee beans can also be purchased separately.

After its successful launch in New York City, CMB expanded to Boston and San Francisco, followed by Chicago, Los Angeles, and Washington, D.C. The service is now being released to everyone, but the sisters warn that it could hit a few stumbling blocks along the way. In smaller cities with fewer users, the app may not be able to provide a daily match until word spreads and more local users have signed up.

"As we grow, our member base is going to become a lot more diverse," Kang says. "[We'll] have to refine the algorithm very quickly ... to be able to deliver a personal, relevant match." Coffee Meets Bagel has already made more than 1.5 million matches, so it sounds like that diversity isn't far off.

Oh, Ashley Madison...what a confusing phenomenon you are.

On one hand, I am a firm believer that monogamy is not for everyone and a strong supporter of open relationships of all shapes and sizes.

On the other hand, my support of (ethical, honest) nonmonogamy has made me even less tolerant of those who don't choose to be ethical and honest about their extracurriculars.

On a third hand, my entrepreneurial spirit can't bring itself to completely condemn someone who saw a hole in the market, filled it, and is no doubt raking in the big bucks because of it. People are going to cheat whether or not I like it - someone might as well be making money off their infidelity.

Ashley Madison has been celebrating successes left and right so, begrudgingly, I think I might have to let the third hand win out. Maybe part of me is just bitter I didn't have the idea first.

In July, the infamous cheating website reached a major milestone: its 20 millionth member. And here's the real kicker: that makes its membership larger than the entire population of New York State. The 20 millionth member comes after a year of unprecedented growth for the site which, says AshleyMadison.com CEO Noel Biderman, "proves that infidelity is a universal business."

Just how universal? Ashley Madison is one of the fastest growing dating site, with one new member joining every six seconds. The dating service has also experienced an increase of over 15% in mobile usage a year and expanded to include Ashley Madison Blackbook, an app that allows affair seekers to maintain anonymity beyond emails with a private phone line for discreet texting and phone calls.

More recently, Ashley Madison is expanding its global reach (already 27 countries) to include Japan, the site's first launch in Asia. As of July 1, 2013, four days after it debuted in the new country, Ashley Madison Japan had already logged 230,000 visits and 70,000 members.

"This might be bigger here than in America," Biderman told The Wall Street Journal. "We totally underestimated the desire here." The biggest challenge the site faces now is marketing - word of mouth isn't exactly a viable option when users are looking to keep their cheating under wraps. "We're going to position ourselves as a marriage-saving site," Biderman added, "a social network for married people. I think they'll understand that concept."

A 'marriage-saving site?' If you say so, Biderman, if you say so. After all, who am I to argue with the man who proudly announced that his company has "become the 'Kleenex of cheating?'"