MARKETWATCH – Jan 25 – Leading internet and technology company FriendFinder Networks Inc. has announced the implementation of a cost reduction initiation to more closely align with its new business model. CEO Marc Bell stated that the company is taking steps to reduce their operating costs as part of their efforts to reorganize their operations. In an effort to reduce operating expenses and increase shareholder value, the company is consolidating their global offices to fewer locations and relocating several operations to their main facility in Sunnyvale, CA.
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113 posts categorized "FriendFinder"
FriendFinder Networks Reports Third Quarter 2011 Results
PR NEWSWIRE - Nov 14 - Revenue for the Q3 '11 was $82.7M. Revenue was impacted by a decrease in traffic and a decline in new subscribers and renewal orders primarily in European markets. Social networking revenue was offset by an increase in live interactive video. "While we achieved certain business objectives, we are not satisfied with our overall performance in the third quarter. Europe remains a challenge where we have experienced lower user conversion rates and transaction acceptance rates", commented CEO Marc Bell.
FriendFinder Networks Acquires JigoCity for $65 million
PR NEWSWIRE - Sep 12 - FriendFinder Networks announced the acquisition of BDM Global Ventures, the company which owns the operations of JigoCity, for a combination of stock and warrants. The merger consideration will be ~$65M. JigoCity is a global social commerce organization committed to providing members with high quality daily deals that are relevant to their individual lifestyles.
See full article at PR Newswire
This post also appears on SocialNetworkingWatch and DailyDealsObserver.
FriendFinder Networks Q2 Loss Widens
ASSOCIATED PRESS - Aug 16 - FriendFinder Networks' net loss widened in its first quarter as a publicly traded company. FriendFinder reported a Q2 loss of $11.9M, compared with a loss of $4.9M. Revenue dipped 1% to $83.4M as FriendFinder saw a decline in Internet revenue, which includes revenue from offerings such as websites and social networking.
Mark Brooks: A good business, gone bad? Or tough times for adult dating? A little of both. Andrew Conru managed FriendFinder like a sole proprietorship from 1996 to 2006 when it was sold to Penthouse in December 2007. It was his baby.
See news here.
Here's my interview with Andrew in 2006.
I still think they should sell off non-core businesses.
But as long as they look after affiliates, and continue to refine and retain members through the FriendFinder hub of dating sites, they'll do well. They should be doing better than any other dating site with the properties, momentum and potential that they have.
FriendFinder Acquired PerfectMatch.com
PR NEWSWIRE - July 18 - Adding to FriendFinder Networks' vast portfolio of social networks, PerfectMatch.com is a welcome addition to the platform of FFN's general audience sites. Unique to PerfectMatch.com is the Duet Total Compatibility System, which analyzes the "whole person" to find friends, taking into account each member's personality, values and ideals, life and love-style preferences to identify and find the person right for them. PerfectMatch.com founder Duane Dahl will join FriendFinder Networks as GM of the Company's general audience dating websites group, including Amigos.com, AsiaFriendFinder.com, BigChurch.com and SeniorFriendFinder.com.
People Will Pay for Sex But Not for Love
BNET - June 10 - 17 of FriendFinder Networks' 22 brands are targeted at a general audience. Most are dating sites, but they offer non-racy relationships, such as BigChurch.com for Christians and Slim.com for dieters. Some of those businesses have audiences that are far greater than FFN’s best-known brands. AsiaFriendfinder and Amigos.com both have more registrants historically than Alt.com, the kinky dating site; and BigChurch and Senior Friendfinder have more than Bondage.com. The 800lb gorilla in FFN’s business is AdultFriendFinder with 224M registrants since inception. Revenues from the adult businesses dwarf those of the general audience. In Q1 2011, FFN had $83M in total sales, and $55M of that came from its adult sites. Only $3M came from the 17 general audience businesses.
FriendFinder Networks: 33% Increase in Adjusted EBITDA in Q1
PR NEWSWIRE - June 6 -
First Quarter 2011 Highlights
- Income from operations increased 52% YOY to $19.7M
- Adjusted EBITDA increased 33% YOY to $27.2M
- Net loss decreased from $0.60 per share in 2010 to $0.27 per share in 2011
- Raised $50M in gross proceeds from IPO
Q1 2011 Revenue was $83.5M, gross profit was $56.8M. On May 11, 2011, FriendFinder completed its IPO, and issued 5M shares of common stock at a price of $10.00 per share.
At FriendFinder, Models Make More Than The Company
BNET - May 19 - The stock of FriendFinder Networks (FFN) tanked following its IPO, sinking from $10 at its opening a few days ago to $5.85 at yesterday’s close. The company announced a revenue decline of 3.1% to $83.5M in Q1 2011. ~22% of FFN’s revenues from from a “live models” business, in which consumers can watch performers, er, “perform” on webcams. Commissions to models and their studios are 32.2 % of those revenues. Some rough math shows that the models and their studios collectively received ~$24.5M in commissions from FFN last year. The company, by contrast, lost $43.1M.
FriendFinder Expects $50M IPO
ASSOCIATED PRESS - May 11 - FriendFinder Networks Inc. is anticipating $50 million in proceeds from an IPO of 5 million shares at $10 per share. This price is on the low end of the $10 to $12 expected price. The underwriters will also be given an option to purchase up to 750,000 more shares if there is excess demand. FriendFinder Networks plans to use the proceeds to pay off part of its debt.
Mark Brooks: As society in general becomes ever more curious and open to sexual discovery, FriendFinder's stock should rise accordingly, provided the company is well run. FriendFinder is a behemoth company in a relatively small industry. Scale-wise it stands shoulder to shoulder with eHarmony, Match, and Fling. The dating industry in North America stands at ~$1.3 Billion a year revenue. (Full Disclosure: I worked for FriendFinder in 2003-2004, and Fling is a client of Courtland Brooks).
Facebook Sues FriendFinder, Peeved Over FacebookOfSex.com
PAID CONTENT - Apr 18 - Facebook has filed a few different trademark lawsuits against sites it doesn’t approve of, like Teachbook and humor site Lamebook. But now a much bigger company is messing with Facebook’s name: adult social networking company FriendFinder Networks, which has launched FacebookOfSex.com. It’s hard to believe that FriendFinder thinks they’re going to get away with operating a website by this name. Facebook is asking to have a bunch of domain names canceled or transfered to its control, including international variants and misspellings, such as: facebookofsex.co.uk, facebooksex.de, facebokofsex.us, fbookofsex.com, facebookfosex.com, facebookofsexysingles.com, facebook-of-sex.com, and many others. It’s also asking for $100,000 in damages for each of those domains, and additional unspecified punitive damages.
by Joe Mullin
See full article at Paid Content
Mark Brooks: Someone at FriendFinder considered the upside and downside, and the upside was lots of short term money. Naturally they would assume that Facebook would shut them down at some stage. But what took them so long?
This post also appears on SocialNetworkingWatch.
FriendFinder Revisits Plans To Go Public
TECH CRUNCH - Mar 17 - More than a year after cancelling its IPO, citing terrible market conditions, FriendFinder has filed an amendment to the Registration Statement on Form S-1 with the SEC in connection with a re-launch of its proposed IPO. The company says it intends to use the net proceeds of the public offering to repay a portion of its existing indebtedness.
FriendFinder Networks Expects $350 Million In Revenue
SUN SENTINEL - Dec 30 - FriendFinder Networks owns ~30K sites, also owns Penthouse Magazine, and has more unique visitors than MySpace and Twitter. In 2010, FriendFinder Networks expects $350M revenue. In 2009, the company earned $330M and EBITDA of $103M. It lost money 2006, 2007 and 2008. Early in 2010, the company postponed an IPO of $240M citing market conditions. CEO, Marc Bell said he hopes to make acquisitions using proceeds from the $551M financing the company completed in October. Penthouse Media spent ~$400M to acquire Various Inc. and changed the name to FriendFinder Networks. In July, the company made a $210 million offer for Playboy Enterprises that's still pending. FULL ARTICLE @ SUN SENTINEL
Mark Brooks: A well-timed FriendFinder IPO would build a lot of investor awareness in the iDating space, and help drive up prices for IAC, Spark Networks, EasyDate and Snap Interactive and bring more money to the coffers of startups. You can see financial analysis and summaries of these companies in pdf's on the right bar of OPW over here >>>
Full Disclosure: I worked for Andrew Conru at FriendFinder in 2003-2004
FriendFinder CEO Looking To Buy Playboy
THAINDIAN NEWS - Oct 29 - Marc Bell, the owner and CEO of FriendFinder Networks, has indicated that his company is looking to “raise capital to grow the business”. It is believed that the company that recently completed $551M round of financing might still have their eyes set on the Playboy Enterprises. The company has made prior attempt to take over the company but the offer was rejected. FULL ARTICLE @ THAINDIAN NEWS
FriendFinder Networks Completes $551 Million Financing
PR NEWSWIRE - Oct 28 - FriendFinder Networks announced the completion of its $551,235,000 financing. FriendFinder Networks has 125M unique monthly visitors. The Company owns ~30,000 websites with ~405M registrants in 185 countries and offers a wide variety of online services. FULL ARTICLE @ PR NEWSWIRE
Mark Brooks: 29500 landing pages? Who financed them?
Mixergy Video Interview With Mark Brooks
MIXERGY - Sep 8 - Mark did this interview from Malta, where he’s making a name for himself in the online personals industry through his blog Online Personals Watch and consulting company Courtland Brooks.
Q: How are you managing your company from Malta?
A: 3 years ago I took a trip to Shanghai. There was an Internet dating conference in Shanghai, and I decided to stay there for 2 months. And business grew. I learned that my clients did not care where I was based as long as the work got done. I brought 15 people onto my team.
Q: What exactly do you do when you consult online personal sites?
A: We help Internet dating companies make more money. And also companies that want to talk to them. We do PR, business development, and strategic advisement.
Q: Can you tell people a little more about the blog?
A: In 2004, when I was working with FriendFinder, I noticed that I was getting great snippets of information from the press. And I consistently didn't have time to read all of the articles. So I thought it would be nice if somebody could summarize and extract the best intelligence out of what the press were writing about. So in June of 2004, I started OnlinePersonalsWatch.com. The idea is that we condense three hours of reading into three minutes of reading a day. In January of 2005, I had three jobs offers on the table, so I decided to take all three. And that is how Courtland Brooks started. At a point from there, I knew a lot of people that I thought could do a better job than me. So, I hired them.
Q: Is there still money in the dating world? It seems to me like most people either go to one of the top sites or they go to Facebook.
A: The reason dating sites have a future is because it's one thing to be single and another to be single and available. And it's even another thing to be single and available and looking. You don't find that on Facebook. Yes, you can find people that say they are single. But are they really single? Are they dating? Are they really available?
Q: But Markus at PlentyofFish has blogged that social networks are taking customers away from dating sites.
A: Yes. It is taking attention. But people want a more focused experience. There are two surprises that we have had in the dating industry. The first one is that social networking didn't kill the dating industry. And the second one is that Internet dating didn't kill the matchmaking industry.
Q: What about the idea that there are already enough established players out there that it is really hard to come in with a new site?
A: It is. Without a doubt.There are thousands of Internet dating services. I rather think it is like starting a restaurant. It's not that difficult, you would think, to start a restaurant. But there's a lot more moving pieces that go into building a successful restaurant than meets the eye. And the same with Internet dating.
Q: Let's say Casey Allen, who I see here in the audience, decides that he is going to start an online dating site. What's the first thing that you'd recommend that he do?
A: First question is, is he a marketer or a technologist? If Casey is a marketer then he should go down the white labeling route and use a service like White Label Dating, DatingFactory.com or EasyDate.
Q: What if Casey Allen happens to be a technologist and he can code something up? What would you advise him at that point?
A: There are two extra routes that he can take. Number one is to use an off the shelf software like BoonEx and another option is use a programming outfit that has already built dating sites in the past.
Q: How do you bring people into a site today?
A: All of the major dating sites spend a lot of money on PPC. So, Overture and AdWords are an absolute mainstay of the industry. PlentyofFish is a wonderful place to run ads. If you can pay an extra 50 cents to a network, then you can get 10 times more traffic. Commission Junction and ShareASale have a good reputation.
Q: What else brings people in?
A: SEO. Also I'm a big fan of affiliates. The problem with affiliates, by the way, is there are rogue affiliates that will send junk traffic. The only way to deal with them is you've got to understand their position. They want to make money. And affiliates tend to be short-term based. They don't care too much about the brand, because they will just switch out to a different brand. So, the only way to really manage rogue affiliates is by laying down guidelines.
Q: We talked about how to get people in the door. What about getting them to multiply? By multiply, we mean viral marketing, getting them to bring their friends..
A: Let's start with Zoosk. They are one of the great, recent, success stories. On a typical dating site, you sign up. You've got to put in all your information. With a Facebook based social dating site such as Zoosk, some of that information can be sucked over. And so that really improves the initial conversions and efficiency. Plus, you know, the kinds of people that are on Facebook are going to be a little bit more social. When people talk about a good or a bad experience they think of as Internet dating. They don't tend to think of it so much as, it's Zoosk. It's Match.com. It's FriendFinder or Fling or whatever. I think the industry as a whole needs to make sure that they have a good experience. That means not allowing scammers. Scammers are actually very good for short-term conversions, funnily enough.
Q: How is that?
A: Because they are very active about communicating with people and getting them to convert.
Q: Do you have a sense of what percentage of sales these scammers are responsible for?
A: I don't know. I think for some sites, it is quite significant. For sites of integrity, it is very small, because they kick them off.
Q: What else do people do to multiply?
A: I am a big fan of success stories. ChristianCafe.com is very good with success stories. So is Match.com and PlentyOfFish.com. Now, there is a bit more to be said for social media these days and mobile.
Q: Can you give me an example of one company that's doing social well and how they are doing it, and then one company in mobile and how they are doing mobile well?
A: PlentyofFish does well as a social dating site in and of itself. In terms of social media, well, actually, Zoosk is a good example. They have had some music videos that have been featured, and so has PlentyofFish. PlentyofFish has been in a video on Lady Gaga. So, that's quite a new thing for the industry. I think OKCupid has the best blog in the industry. Again, they have got material that is extremely compelling, extremely interesting. And so they are getting the press talking about it.
FULL ARTICLE @ MIXERGY
See all posts on FriendFinder See all posts on Match.com
See all posts on PlentyofFish See all posts on Zoosk
See all posts on WhiteLabelDating See all posts on Fling
See all posts on DatingFactory See all posts on ChristianCafe
See all posts on EasyDate See all posts on OkCupid
See all posts on BoonEx
Andrew Conru, The Engineer Of Love
IEEE SPECTRUM - Aug 24 - Andrew Conru is the reclusive founder of FriendFinder, the largest network of dating sites, with more than $300M in annual revenues. He wants to build the virtual-reality restaurant inside an empty retail space in a trendy part of Seattle. Diners would eat in a real train car, with changing scenes from exotic locales projected on the windows—videos of Kyoto with your sushi, for example—as the train shakes and shimmies to simulate forward motion. "When Conru sees inspiration, he’s very quick to react,” says Mark Brooks, a social networks analyst for Online Personals Watch. In 1994 Conru built Dining.com, one of the first Web sites based on collaborative filtering. User reviews and preferences were used to recommend restaurants to other users. Later in 1994, Conru decided to apply collaborative filtering to a problem in his own life—getting a date. The result was Web Personals, the first dating site, which he sold in 1995. This became the basis for the FriendFinder network, which he launched in 1996. Penthouse Media Group bought FriendFinder in 2007 for $500M and renamed itself FriendFinder Networks. In 2008, FriendFinder filed for an IPO, hoping to raise $460M. By 2010, that amount was down to $220M. Finally, earlier this year, FriendFinder ”indefinitely shelved” the IPO. FULL ARTICLE @ IEEE SPECTRUM
FriendFinder Networks Offers $210 Million For Playboy Enterprises
WSJ - July 15 - FriendFinder Networks has made a proposal to acquire Playboy Enterprises, Inc. for $210 million. FriendFinder Networks owns over 30 000 web sites with over 350M registrants in 180 countries, offering a wide variety of online services. With ~200,000 affiliates in its network, FriendFinder Networks maintains one of the world's largest internet affiliate programs, providing the Playboy brand the ability to help extend its global reach. FULL ARTICLE @ WSJ
Interview With Andrew Conru
Q: Back in 1994 when you started up WebPersonals.com, did you ever think that the industry would be this huge?
A: While I understood that online dating would change the way people meet, I didn’t fully grasp the extent that it would change the lives of hundreds of millions of people.
Q: Is there any new technology that you see getting incorporated into online dating that will revolutionize it? Mobile, GPS, Apps, Video, VOIP, Matching
A: There are four elements to online dating: access, member profiles, searching/matching, and member interaction. The access via mobile does open members to more spontaneous meetings. As far as member profiles, most people are comfortable only with uploading photos and creating text profiles. Members say that online dating sites have tons of profiles but it gets harder and harder to find a good match (while actually, the matches are better than before just that they have become more picky).
Q: You were one of the pioneers in developing niche community sites with AsiaFriendFinder and BigChurch. What made you think that these niche groups would be so successful?
A: In the early days of online dating, we had to come up with ways to make people feel comfortable that they would find good matches and one way was to show them that all the members of a site matched their primary filter.
Q: Do you think that there is room for an emerging dating company to compete with the likes of FriendFinder Network, Match.com or eHarmony?
A: There is also always the potential for a first-mover company to take advantage of new traffic markets.
Q: What do you think of eHarmony’s approach to personality test matchmaking vs. searching profiles?
A: I believe that self-assessment tests, specific suggestions on how to better search, and many profile with personality data give online daters a better chance at success.
A: While I understood that online dating would change the way people meet, I didn’t fully grasp the extent that it would change the lives of hundreds of millions of people.
Q: Is there any new technology that you see getting incorporated into online dating that will revolutionize it? Mobile, GPS, Apps, Video, VOIP, Matching
A: There are four elements to online dating: access, member profiles, searching/matching, and member interaction. The access via mobile does open members to more spontaneous meetings. As far as member profiles, most people are comfortable only with uploading photos and creating text profiles. Members say that online dating sites have tons of profiles but it gets harder and harder to find a good match (while actually, the matches are better than before just that they have become more picky).
Q: You were one of the pioneers in developing niche community sites with AsiaFriendFinder and BigChurch. What made you think that these niche groups would be so successful?
A: In the early days of online dating, we had to come up with ways to make people feel comfortable that they would find good matches and one way was to show them that all the members of a site matched their primary filter.
Q: Do you think that there is room for an emerging dating company to compete with the likes of FriendFinder Network, Match.com or eHarmony?
A: There is also always the potential for a first-mover company to take advantage of new traffic markets.
Q: What do you think of eHarmony’s approach to personality test matchmaking vs. searching profiles?
A: I believe that self-assessment tests, specific suggestions on how to better search, and many profile with personality data give online daters a better chance at success.
Q: Do you think that Social Networks are a big threat to the dating industry at large?
A: In 2001, I modified FriendFinder.com to support both friend social networking and online dating. It turned out not to be successful because members found that interacting with their current friends was a separate process than discovering new friends and dates.
Q: Do you think love can blossom in 140 characters or less?
A: The most common subject line sent to members of online dating sites is “hi”. The question is more dependent on what the person had to do before they were able to send you that 140 characters… how were they screened? how do you know that they have the potential to be worth loving?
Q: What is one thing that you would tell someone pursuing a new start-up?
A: Pick your battles… find the minimum product/service offering features that you need to have in order to have a complete solution and get it done as soon as possible.
FULL ARTICLE @ LOVESITES.COM
Adult Site Operator FriendFinder Shelves IPO
REUTERS - Feb 5 - FriendFinder Networks Inc indefinitely shelved its planned $220M initial public offering on Friday. The company did not say when it might again try to price the IPO, but said in a statement it would not proceed "until market conditions improve." FriendFinder intended to sell 20M shares for between $10 and $20 each and use the proceeds largely to pay down debt. FriendFinder first filed for the IPO in Dec 2008, and initially sought to raise as much as $460M. FULL ARTICLE @ REUTERS
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