Cupid.com

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.

2013 didn't start out well for Cupid plc, the top-5 global online dating company that's responsible for a network of dating sites including Cupid.com. Cupid came under fire for allegedly using fake profiles to boost its membership, after the BBC claimed that members of Cupid's online dating services suspected fake "flirtatious" messages were being used to encourage free users to sign up for paid subscriptions.

Cupid plc denied using fakes and said it was cleared of the allegations by auditors. According to Cupid, the auditors found "no evidence of a company organised practice of staff enticing registered members to subscribe through the use of fake profiles."

The experiences of members and undercover investigators suggest otherwise, and users are still (rightfully) suspicious, but some good news has finally come out of the Cupid camp.

Cupid recently launched 'safe mode' functionality for its network of dating sites. The update still allows users to choose who they want to interact with, but provides the added security of being able to filter out members who choose not to verify themselves on the site. With 'safe mode' on, you can contact any user but will only receive communications from members who have undergone the verification process. Unverified users are welcome to continue using the site, but are encouraged to become "Trusted Members" to unlock access to people already using 'safe mode.'

For some reason, at this point, 'safe mode' is only available for male users and only female members are asked to become verified. Cupid hopes that the new technology will create a "smoother" and "more positive" online experience for its users and...well...I certainly can't blame them for hoping. Cupid needs any boost it can get at this point.

"We have listened to our customers and to dating website users in general," says Sean Wood, Communications Director at Cupid plc. "The main goal here is to give our customers choice to decide who they communicate with. This means they can choose verified users only or indeed if they feel comfortable with communicating more widely, then they have that ability too. Our members can use the sites secure in the knowledge that they are in a safe environment where they can get on with enjoying the experience, making contacts and meeting up."

Right. So...Cupid customers are safe from each other, but the real question is: are they safe from Cupid itself?

Recipient
Cupid.com

In 2012 the Editor's Top Pick - United Kingdom Award goes to Cupid.com. This dating site has been around for a while now and ever since the parent company (Cupid plc) went public this dating site has experienced growth not only in the UK but the rest of Europe as well. They now have over 3 million members.

Not only do we like the site design but Cupid.com was also a winner in the same category this year at iDate, a leading online dating industry conference. You will notice this dating site is different right away when you sign up to this service. The profile creation is really easy to use with large graphics that you can select when answering questions about you for your profile. When you have finished creating your free profile you will then gain access to the site. From here the clean interface is easy to follow with everything labeled or with an appropriate icon. Searching is easy as all options are available to you on top of the results which makes it easy to refine your search as you go.

Cupid also has mobile apps for Android and iPhones that allow you to perform almost all of the same online dating activities that you would do on the main site. A web browser toolbar is also available that gives you instant access to your account while you are at your computer. You will know right away when someone views your profile or contacts you. Finally they also have a downloadable Desktop Chat program that provides you with ultra-fast messaging with many of the same features as MSN Messenger and Skype.

Read our review of Cupid.com for more information about this dating service or visit Cupid directly.

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

One of the United Kingdom’s fastest growing dating services is Cupid plc. Two of their more popular dating sites includes Cupid.com and Flirt.

In February of this year they surpassed 100 million unique visitors. Last year during the same period they had only 15 million. The United States accounts for about a quarter of their traffic with the rest coming from Europe. Cupid reports average monthly global sales of around $9 million USD.

Cupid.com also just recently launched a HD iPad app. They already have native apps for both the iPhone and Android devices.

For more on the story you can read the press release and to find out about the dating site you can check out our Cupid.com review.

Cupid PLC head office is located in the city of Edinburgh in Scotland. They employ about 15 people at the head office and another 200 or so in the Ukraine.

Cupid made a few announcements earlier this month about their final results for the year 2010:

• Revenues increase by 202 percent to £25.7m. In 2009 revenue was £8.5m
• Pre-tax profits for Cupid rose to £4.16m from £983,000 in 2009
• 42 percent of Q4 revenues came from outside the UK
• Their goal is to have more than 50% of revenues coming from North America by the end of 2011
• When you combine all of Cupid's dating sites they have 13 million customer profiles registered worldwide

For more information on this story you can read the announcement on the London Stock Exchange. To find out more about Cupid PLC dating sites you can read our Cupid.com review.