Dating startups eastern european dating websites
And, what makes it worse, because of the nature of dating startups (primarily: to help people find others to date and get into relationships with), there’s a built-in churn; naturally, once someone finds the “love of their life”, there’s no longer any reason to use the dating startup’s services.“With dating products, the better you are at delivering dates and matches, the more they churn!So what do the churn rates look like for a dating product? Let’s calculate that: 20% monthly churn = 1-(1-0.2)^12 = 93% annual churn You read that right.And that means at 20% monthly churn, it gets very hard to retain what you have, much less fill the top-of-funnel with enough new customers to grow the business. With most subscription products, the more you improve your product, the lower your churn.Built-in churn Churn sucks, and the better your dating product works, the more your customers will churn*.Every churned customer is a new customer you’ll have to acquire just to get back to even.We’ve written previously about how dating startups simply don’t get any love from venture capitalists.Last year, the portion of VC money that went to online and mobile dating startups made up a tiny fraction of the overall funding doled out to startups in 2014; dating startups received at total of .8 million overall – tiny when compared to examples of individual startups having raised more than 0 million.
Here are the reasons usually given for why investors don’t do dating: Let’s break it down.
Here’s some data on the few dating cos that have raised.
Obviously, anyone starting a new company in dating should try to understand investor biases in this sector.
This limits the market size as well as restricting the types of marketing channels you can use to read those consumers.
A similar challenge is that these products aren’t “social” in the same way that Skype or Facebook might be.
Paid acquisition channels are expensive Dating products have historically depended on paid acquisition channels to build their customer base, and other subscription products have generally done the same.