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POF and Lavalife Founders Discuss their Former Rivalry and the Online Dating Industry

Canada
  • Friday, March 25 2016 @ 10:01 am
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Markus Frind on Disruptors

Last month on the Canadian TV show The Disruptors, an unlikely interview took place between host Bruce Croxton and Markus Frind, the founder of popular online dating site Plenty of Fish. (Broxton was the founder of dating site Lavalife, which raked in members until POF’s free service hit the market.)

For the first time, the two former rivals were sitting down together to discuss the current state of the dating industry, and the history of their two companies.

Broxton noted the quick success of POF, which because of its free service, quickly gained a lot of users – many of whom hadn’t tried online dating previously. Typically, dating sites made their money through selling subscriptions to members, but POF tried a different model to attract a larger audience, and it worked. Instead of selling subscriptions, the site made its money by selling ad space. After all, they had an engaged audience.

At its peak and before its sale in 2004, Lavalife had over four hundred employees. Frind launched POF in 2003 and operated the service alone from his apartment for the first five years, without hiring another employee despite the service’s rapid growth. He managed to turn it into the largest dating site in the world by focusing on the US market (even though he was based in Canada), and by keeping the service free despite the naysayers.

Frind’s experience wasn’t in the dating industry when he first thought of the idea for POF. In the interview, he admitted that he just needed to learn a new programming language and the best way to do that would be through creating a dating website.

Croxton was complimentary in the interview, admitting that Frind was incredibly innovative in the dating space, despite the endless number of dating apps launched in the last few years claiming to change the online dating industry. “I find it ironic because many of the tech ideas on the show really emphasize that it’s not about the technology anymore because you can be up and running very quickly, it’s really a marketing barrier to entry. But you were pioneering that back in 2003,” Croxon said.

Frind Agreed, noting that he sold his company (for $800 million) because he was tired: “There isn’t really much innovation in the dating space; the features we have today are the same features we had five years ago. It just got kind of boring and I wanted to do something new.”

You can watch the whole interview here. To find out more about POF you can read our review on Plenty of Fish.

Reports Of Rape Linked To Online Dating On The Rise

United Kingdom
  • Thursday, March 03 2016 @ 10:26 am
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Reports of online dating-related rape have risen by more than 450 percent in six years, according to the UK's National Crime Agency.

Between 2009 and 2014, the number of reports of serious sexual assaults during first face-to-face meetings following initial contact online rose in the UK from 33 to 184 – a nearly sixfold increase. With around seven million UK residents currently using dating sites, that number is a small fraction of total online encounters – but its growth is still a reminder that safety is an important concern when dating online.

“Early analysis indicates that the online dating phenomenon has produced a new type of sexual offender,” reads the NCA's report on the subject. “These offenders are less likely to have criminal convictions, but instead exploit the ease of access and arm-chair approach to dating websites. This is aided by potential victims not thinking of them as strangers, but someone they have got to know.”

Becaue online relationships tend to progress more quickly than those that begin offline, online daters often have a heightened (and misleading) sense of emotional intimacy. By the time they meet in real life, they falsely believe they are at a more advanced stage of the relationship than they really are. In turn, they are comfortable taking more risks than they normally would and can find themselves in vulnerable situations. That, the NCA posits, is why attacks are most often committed during the first face-to-face meetings.

Looking deeper at the stats, the majority of the victims were women. Eighty-five percent of those reporting rapes were female and 15 percent were men. In spite of safety warnings issued by dating services, police and rape-prevention groups, many opt not to hold their first dates in public spaces. As a result, 71% of the alleged rapes were committed at the victim's or offender's residence.

The National Crime Agency strongly emphasized that the increased risk associated with certain online dating behaviors does not mean blame should be placed on victims.

"A rape victim is never at fault and we do not want the circumstances in which these assaults take place to cause any victim to doubt that," said Sean Sutton, Head of the NCA's Serious Crimes Analysis Section. "Sexual assault is a crime, full stop, and we want victims to feel confident reporting it to the police."

For more information on preventing rape and sexual assault in an online dating context, the NCA recommends visiting Get Safe Online, an initiative supported by the government. The initiative's extenstive guidelines can help daters stay safe when meeting face-to-face.

Dating app Grindr hooks up with Chinese gaming investor

China
  • Thursday, February 04 2016 @ 09:25 am
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  • Views: 1,807

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.

Texas Attorney General Shuts Down Lone Star Introductions

United States
  • Tuesday, December 08 2015 @ 06:55 am
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Lone Star Introductions, a matchmaking service operating in the state of Texas to help singles find love, was forced to cease operations and pay restitution to its former customers. According to Texas Attorney General Ken Paxton’s office, the judgment came from a lawsuit against the Massachusetts based company ‘for violating the Texas Deceptive Trade Practices Act and Texas Internet Dating Safety Act.’

A state district court issued an injunction that calls on the dating service and affiliated dating sites, including eLove Matchmaking, International Dating Ventures and International Introductions, to cease operations in the state. Lone Star Introductions was using multiple company names to pursue its aggressive tactics, and was informed by the state of Texas two years ago that they were being investigated.

The attorney general says the company uses lead generating companies to mine online dating services for customer contacts, then uses the information to make cold calls in Texas, without registering as a telemarketer. They would pressure prospective clients to meet in the Lone Star Introductions offices to sign expensive contracts for dating services which they would then not provide.

According to website Courthouse News, Lone Star Introductions was particularly ruthless when it came to getting money from vulnerable clients. According to court documents, once Lone Star would get a phone number, they "use high pressure and coercive tactics" to try to get targets to sign up, including "incessant phone calls," coercion and manipulation. "Defendants charge consumers between $7,995 and $12,995 for prospective dating introductions," the state says.

Lone Star calls its telemarketers "counselors,” but according to Paxton’s office were little more than aggressive telemarketers.

Courthouse News goes on to note the following from the lawsuit: "Consumers who complained to defendants and requested to cancel their contracts are harassed and threatened by defendants with financial ruin and criminal prosecution. One consumer alleges that an eLove representative 'yelled four-letter curse words at [him], threatened to destroy [his] credit, prosecute [him] for a felony, and report [him] to the Texas Attorney General's Office' when the consumer attempted to cancel his contract."

According to Paxton’s office this type of harassment and threat to consumers violates debt collection regulations. Also, the “Counselors” at Lone Star Introductions failed to comply with the Texas Internet Dating Safety Act, which includes advising customers of safe dating practices.

The final judgment ordered the defendant to pay $500,000 in civil penalties and pay $20,000 in restitution to customers.

An eHarmony Cyber Monday Canadian Special

Canada
  • Friday, November 27 2015 @ 08:30 am
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  • Views: 1,329

eHarmony is offering a 4 day Cyber Monday Special this weekend in Canada. It starts Friday November 27th and ends on Monday November 30th, 2015.

With this special you can receive up to 75% off on select memberships at eHarmony. This is a great deal for singles who are looking to try out online dating. To receive the deal you don't have to do anything more than signup to eHarmony by November 30th. Once you have created your membership and completed the profile questionnaire you will find the discounted prices on your membership subscription page.

For more information about this online dating site, you can read our review of eHarmony review.

New Dating App Once Offers Personal Matchmaking

United Kingdom
  • Tuesday, November 24 2015 @ 06:55 am
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  • Views: 2,024
Once

Looking for a new dating app? It’s not hard to find something besides Tinder – it seems a new dating app launches every week, each with its own particular spin. But the new U.K. launch of dating app Once has got my attention, because it offers something the other apps don’t – real human matchmakers in place of computer algorithms. (We are now going back to basics with online dating.)

Once works like this: once every 24 hours, users will get a hand-picked match to either decline or accept within the next 24 hours. Dates are carefully chosen using several criteria, including interests, looks and personal preferences.

With Once, there is no auto-swiping or endless browsing or location matching like you find on apps like Tinder because the match is personally curated. But it also means as a dater, you have to have patience, because you only get one match a day.  After all, the human matchmakers have a lot of other people to cater to, not just you, and this takes time.

But patience can work in your favor, and often leaves you more interested to tuning in and seeing who your featured match will be. Chances are, you’ll accept more matches when you don’t have an endless array of potential dates to choose from – and because it’s a bit more personal, instead of computer-generated choices. The thinking is that you and your hand-picked date will have some things in common, and the likelihood of relationship success will be greater. The jury is still out on this, as Once hasn’t been on the market long enough to see results.

The dating app recently launched in France, and managed to gain 100,000 users in only a couple of weeks. Once has now launched in the UK, where real-life matchmakers will be picking daters to match in London.

"People are fed up with having just to sit and swipe through hundreds of people in the hope that they might find one person who they like and then start a conversation with," said Jean Meyer, the CEO and founder of Once in an interview with Mashable. He also noted the time-saving aspect of his app: “With Once, we’re taking that responsibility on ourselves, and are handpicking great people for London’s time-starved daters.”

While Once is available in France and the UK on both iOS and Android devices, there is no news yet on the app’s roll-out in other countries. Perhaps this adds to its mystique, to keep daters guessing. Dating Sites Reviews will keep you updated as we learn more.

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