The dating ong online services. The customers are picky, and it is hard to develop and retain an audience. Investors consider such startups too risky for infusing their funds.
Yet, the leading dating apps generate enormous revenue. Even during the pandemic, when most businesses struggled to survive, Tinder Co profits continued to rise. Whats the secret? How to monetize a dating app even while providing a dating service for free?
Global Dating App Monetization Prospects
The lockdown with its limitations for social activities intensified this trend because self-isolation pushed people to use dating apps more heavily. A recent survey from Pollfish showed that 7 of 10 Americans would continue using services for online dating after the pandemic is over. Another curious fact is that users are ready to pay for the service:
Most dating apps are available for free. A new user can create a profile and start looking for matches and send messages to people they like without paying anything. So, how do dating apps make money if they are mainly used for free? Soon, a user finds out that they have run out of free swipes, cannot start a video call with another user, cannot look for matches in another city, etc. All these limitations are put in the app to capitalize on its usage and generate revenue. A user engaged in the process is ready to spend some money to unlock those limitations and https://datingranking.net/local-hookup/shreveport/ get additional options to enrich their online dating experience. It is a crucial concept in dating app monetization.
When preparing a new dating app to enter the market, think about the monetization model. The chosen strategy affects the development, as proper features and an admin interface are required to support it. It also defines how much money you can get from future users. That is why you should decide on this at the initial stage before the actual development starts. There are three major types of subscriptions that help make money on dating apps. You can choose from them.
Freemium
Freemium implies using the primary app features for free while getting paid for additional options. It is a preferable monetization model for startup projects. Its main goals include:
- Spreading information about the product
- Attracting users to a new product
- Increasing the brand awareness
- Developing customer loyalty.
Most online dating apps work on a freemium model. For instance, Tinder has a ‘Tinder Plus subscription that gives access to special features, including unlimited swipes and the ability to find matches in multiple locations. Free users can look for matches only in one area and have up to 25 free swipes per day. There are more options unlocked in Tinder Plus and more paid plans available.
Another freemium model sample is Bumble. A free user can upgrade to Bumble Boost, unlocking a SuperSwipe feature that shows that a user is particularly interested in their match. Another benefit under Bumble Boost is the ‘SpotLight feature: users can put their profiles on the top of the list that brings more views.
Andrey Onopriyenko, KeyUA Chief Technology Officer, noticed that «The success of the freemium model depends on the right choice of features. The more value a user receives under a paid plan, the more likely they will renew payment for the next period. Nevertheless, dating websites make money on free users too by providing in-app purchases and displaying ads. This combination of revenue channels works well for the online dating industry.»
Paid Subscription
While the freemium model implies unlocking some extra features, the membership model requires users to pay for using the application for a certain period. It means you wont be able to access the app until you pay for it. A mandatory payment is a decisive threshold for most customers. As a result, there are significantly fewer fake profiles and fraud in such apps. This model can potentially develop greater trust in your product.
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