Online Personals Watch: News on the Online Dating Industry and Business

Lemontonic Sold to Silverback Media

CANADIAN PRESS -- May 24 -- Lemontonic, a networking software firm, is selling its online dating business for $15.2 million in shares of Silverback Media before merging with another company. The reorganization will be a non-arm's-length transaction.  Lemontonic will then merge with Pioneering Technology.  Pioneering has taken three products from concept to commercialization: the Battery Eliminator, the Safe-T-element and the Powergrill ignition system.

Mark Brooks: Some creative financing.  Interesting they describe themselves as a 'networking software firm?'  Lemontonic's Alexa rank is a semi-respectable 19k and growing (11k today).

Spark Acquires MingleMatch

PRNEWSWIRE -- May 23 -- Spark Networks announced that it has completed the acquisition of MingleMatch.  MingleMatch's brands will join Spark Networks online personals communities led by AmericanSingles® and JDate®. 

Mark Brooks: MingleMatch runs 21 dating sites: Adventist Singles Connection, Asian Singles Connection, BBW Personals Plus, Black Singles Connection, Canadian Personals, Catholic Mingle, Christian Mingle, Deaf Singles Connection, Greek Singles Connection, Indian Matrimonial Network, Interracial Singles, Iranian Singles Connection, Italian Singles Connection, Jewish Mingle, Latin Singles Connection, LDS Mingle, Military Singles Connection, Muslim Matrimonials Network, Prime Singles, Single Parents Mingle, UK Singles Connection

Google Mapping of Member Locations

PRWEB -- May 23 --  Visitors of dating site 4ppl may search for members and see their location on a detailed map.  BoonEx and AEwebworks Dating Software Development, two online dating software development companies announced the new system which uses Google Maps. 

Mark Brooks: AEwebworks (based in Kyrgyzstan) charges $690 for it's online dating software.  Step 1 - Setting up an online dating site - $690.  Step 2 - Building the membership to critical mass - $3 million.

SafetyMinute.com President Endorses MyPrivateLine

PRNEWSWIRE -- May 23 -- Online phone directories make it easy to take a person's phone number and use it to look up that person's name, address, and other personal information. Enter MyPrivateLine.com, a private way to receive phone calls while protecting the identity of your real phone number.

Mark Brooks: A throw away number for 15c a minute. 

PlanetOut Initiated with "Buy" Rating

NEWRATINGS -- May 19 -- A Hambrecht analyst initiated coverage of PlanetOut with a "buy" rating. The 12-month target price is set to $11. PlanetOut has +3.3 million members and is a leader in the lesbian, gay, bisexual and transgender centric market. Revenues and EPS are likely to increase by 75% and 285%, respectively, over the next couple of years, WR Hambrecht adds.  FULL ARTICLE @ NEWRATINGS

Mark Brooks: PlanetOut went public in October 2004 raising $41.6 million.  The stock went from $10 to $14 and then dipped to $6 and is on the rise again.

Faces Behind Facebook Talk Future Plans

UCSD GUARDIAN  -- May 23 -- The Facebook, launched in February 2004, now has an office, permanent employees and more than $12 million invested in stocks, as well as 2.6 million users at 730 colleges across the nation, Moskovitz said.  “I plan on adding 100 new schools this weekend,” Moskovitz said. This summer, Facebook plans on doing some “aggressive hiring” with hopes of making a lot of things a lot better. Specifically, Moskovitz said he hopes to improve on groups and parties and make the system faster and more reliable.   Most sites, such as Friendster, are open networks, but Thefacebook is closed.  This ensures that users are tied together mainly by their schools; therefore, they are meeting people with whom they already have something in common. Zuckerburg started a small Web site for a laugh to find the hottest students at Harvard. The site, Facemash.com, was shut down within 12 hours by the administration.  Facebook launched the following week. Within the next week, half of the Harvard undergraduates had signed up and Zuckerburg enlisted his roommate, economics major Moskovitz, to help move the site to other campuses. “We never market anything,” says Moskovitz. “Everything is word-of-mouth.” It makes money through advertisers that want to target college students. 

Mark Brooks: Friendster was the catalyst...social networks do well under tighter and tighter verticals.  i.e. LinkedIn for business, Facebook for college connections, myspace for music oriented.  Friendster could have capitalised on users needs for grouping their friends in ever diminishing circles, by allowing users to form multiple closed networks.  The connectors are driving the social networking boon, and they simply have too many contacts to be able to organise them easily.  Noone really delivered an easy way for the power users/connectors to do sort their contacts conveniently.

High School Pals - Keep in Touch

ARIZONA DAILY STAR -- May 23 -- For today's high school graduates, there's plenty of options for keeping in touch.  LiveJournal.com is basically an online diary friends can view.  Sites like Friendster.com and MySpace.com can introduce you to your friend's friend's former roommate.  Reunion.com and Classmates.com are devoted to ensuring old schoolmates never lose contact with each other in the real world.  Classmates.com has 60 million users.

Mark Brooks: I lost my black book of university contacts whilst adventuring across the US in an RV after graduating.  In 2000 I worked on eturn.com which was an early form of plaxo (anyone remember planetall.com).  Finally these sites have taken off.  My best avenue for fingind my UK friends is www.friendreunited.co.uk which is huge in UK.

Internet Dating Success Story

HONOLULU ADVERTISER -- May 22 -- When talking about how they met, Penny and Don Valenta of Makiki have two different stories.  The true story is that they met on the Internet.  Why two stories?  They are both still a little uncomfortable with the idea of Internet dating, although it has worked "a miracle" for them.  In a list of Penny's "Top 10" matches, was Don Valenta of Dallas. Without a second thought, Penny e-mailed him.  I didn't want a long-distance relationship," Don later explained. "The nice thing about Internet dating is that you can do it at your own pace without taking time away from work. It's great for busy people."  FULL ARTICLE @ HONOLULU ADVERTISER

Mark Brooks: There's no better advertisement for online personals than this kind of success story!

Former Friendfinder Executives Face Civil Suit

XBIZ -- May 18 -- Friendfinder (Various Inc) filed suit against affiliate managers, Jack Mardack and Sean Barrett for breach of contract, misappropriation of trade secrets and defamation, among other charges, after they left the company and formed Profit Lab, which does consulting work for competitor Sex Search.  Mardack is accused of poaching the company’s affiliate list and that both execs embezzled and diverted company funds.  The suit further alleges that Mardack shared its affiliate list with competitors, helped set up a competing joint venture while employed at Friendfinder and brokered unauthorized payouts while paying those funds to himself and Barrett, and that Mardack made false statements that the company’s “payment processing was in jeopardy due to Friendfinder’s bad financial condition.” Mardack denies all allegations and says he left FriendFinder because of a "hostile environment.  "I am saddened by the retaliatory sentiment and paranoid tone from Friendfinder. I didn’t take away such an affiliate list.  One who does business in this industry knows that everyone who works in it also has a personal list.” Friendfinder seeks damages and a permanent restraining order against Mardock and Barrett from future use of its affiliate list.

The full article was originally published at XBiz, but is no longer available.

Mark Brooks:  Fascinating.  In the sales world salespeople can walk away with their rolodex.  How is the affiliate world different?  I would argue that an affiliate manager should be able to take his 'relationships' from affiliates that he has recruited for the company.  But, not the affiliates already in place.  How to track?  Just what is a 'personal list?'  This case may well lead to some significant affiliate management legal precedents.  Watch this space.

DatingDirect Signs Two-Year Deal With AOL

REVOLUTION MAG -- May 20 - AOL has signed a two-year deal with www.DatingDirect.com to provide its members with access to the UK's biggest online dating agency.  DatingDirect has other deals with sites including iVillage.co.uk and ITV.com, and has more than 2m members in the UK. It is ranked by Nielsen//NetRatings as the largest personals site in the UK in terms of monthly unique users, ahead of Meetic.co.uk and uDate.com.  Research compiled by Jupiter shows that the Western European dating markets will be worth €117m (£80m) by 2007. The UK online dating market is particularly showing rapid growth, currently worth £11.7m and is estimated by Jupiter to grow to £47m by 2008.  DatingDirect was founded in 1999. As well as hosting white-label dating services for other websites and its own branded website, it runs offline dating events, which it sees as a way of raising brand awareness. 

The full article was originally published at Revolution, but is no longer available.

Mark Brooks: Dating Direct is pulling ahead in the UK market it would seem.  It's tough to compete with sites that know how to do good deals.

It's Safety First at New Zealand Dating Sites

NZ STUFF -- May 19 -- A four-week Nielsen NetRatings survey shows New Zealanders are spending up to 90 more minutes online than they did four years ago. Three of the top ten sites were internet personals sites.  www.NZDating.com, www.FindSomeone.co.nz and www.PersonalStuff.co.nz.  Online dating sites have become incredibly popular but it's easy for users to feel bullet-proof when dealing with a faceless stranger on the other end on an email message. Safety should be first and foremost in the thoughts of anyone using these sites. If you're communicating with someone online, don't give out any personal information that you wouldn't want your average crazed psychopath to have access to. I know three happy couples who have met online via chat rooms and dating sites so don't worry, it's not all bad news. 

Matchmaker of Maine, Make Me a Match

BANGOR DAILY NEWS -- May 19 -- "You need plumbing work done, you go to a plumber.  You're looking for the right person, you go to a matchmaker."  The Rochesters opened their doors five years ago www.thematchmakerofmaine.com.  The matchmaking process starts with a free, in-depth interview that can last up to two hours. Once the Rochesters find a potential match, they contact both parties and proceed if there's a mutual interest. They'll even go to the initial meeting to help break the ice.  The cost ranges from $275 for an introductory membership to $575 for a year of unlimited introductions.  Some matchmakers charge $1,000 for their services, while celebrity matchmaker Samantha Daniels, who was the basis for the TV show "Miss Match," charges $10,000.  Tom Rochester said their main client base is singles in their 40s, with 30 being the young end of the age group and 60 being the high end. 50% are divorced, most have advanced education degrees and the majority are successful in their careers but aren't interested in the bar scene. 

The full article was originally published at Bangor News, but is no longer available.

Mark Brooks: Online dating companies can learn a lot from real world matchmakers.  The two worlds need to ally.  Bottle the real world services online and you have the makings of a very profitable service.

eHarmony: Heart and Soul

USA TODAY -- May 19 -- "He's like the grandpa who wants to set you up," says Nate Elliott, an online media analyst with Jupiter Research.  He really does want to set you up - but only if you're emotionally healthy, heterosexual and want to get married.  A psychologist with a divinity degree, Warren has emerged from the Christian community - three of his 10 books on love and dating were published by conservative Focus on the Family - to become one of the Internet's most unlikely entrepreneurs.  Nothing in Warren's TV or radio ads ($50 million spent last year, $80 million projected this year) hints at his Christian background. The Web site doesn't play it up, either.  eHarmony increasingly is seeking out secular audiences through online partnerships, including promotions on USATODAY.com and other news sites owned by USA TODAY's parent company, Gannett. As part of that effort, Warren is trying to distance himself from Focus on the Family and its founder James Dobson, a longtime friend.  Of the leading dating sites, eHarmony is the most expensive, starting at $49.95 a month. Match begins at $29.99, Yahoo at $19.95. Spark Network's largest site, American Singles, starts at $34.95. But at least 7.5 million people have registered to take eHarmony's test, which is free. Users must pay to get contact information for matches. Some also criticize eHarmony's decision to refuse to provide matches for gays and lesbians - a policy that differs from Yahoo, Match.com and many other sites.  It "calls for some very careful thinking. Very careful research." He adds that same-sex marriage is illegal in most states. "We don't really want to participate in something that's illegal." Warren says he rejects 16% of those who take his patented personality test because they're poor marriage prospects. Weed-outs include people under eHarmony's 21-year-old age limit and those whom the site decides are lying on the test. It also removes those believed to have certain types of emotional instability, such as obstreperousness (they just can't be pleased) and depression, because "depression is pretty highly correlated with emotional problems," Warren says.

Mark Brooks: Watch this space.  Next week OPW will feature an interview with Duane Dahl, CEO of eHarmony's #1 competitor, Perfect Match.

Think Partnership Q1 Results

BUSINESS WIRE -- May 17 -- CGI Holding Corporation d/b/a Think Partnership reported record revenue of $10.2 million (166% increase) for Q1 2005. Pre-tax income was $1.4 million (48% increase).  After-tax net income was $879k (37% increase).  CEO Gerard  Jacobs stated, "We are expecting Think Partnership's revenue for the full year 2005 to exceed $70 million." Think Partnership has eight subsidiaries: WebSourced (and Keyword Ranking), MarketSmart Advertising, Rightstuff (Bright Idea Studios), Checkup Marketing, Cherish, Ozona Online Network, KowaBunga! and PrimaryAds...and has signed letters of intent to acquire Vintacom (Relationship Exchange). 

Mark Brooks: CGI/Think is looking for more marketing/online dating acquisitions. 

Online Dating Awareness and Dangers, One Woman's Story

LAS VEGAS CHANNEL 3 -- May 18 -- "The first mistake I made was I said you can come to my house and pick me up."  The couple headed back to her house, where Sonja had big plans to give him a parting kiss in anticipation of their next date. Instead, he asked to come inside to use her restroom. She, in turn, went to the master bath to fix her lipstick. When she came out, he was sitting on her bed. Now she hopes other women will hear her story and think twice about their own safety, especially when dating online. "Will you online date again?"  "No, no I will not. I realized that when I tried the online dating thing - that if you're willing to pay 19.99 a month, you'll meet 19.99 guys."  There are some companies out there now that, for a fee, will do a background check on a potential date for you.  Safety Tips For Dating Online, 1. Start Slow, 2. Guard Your Anonymity, 3. Exercise Caution And Common Sense, 4. Do A Little Digging, 5. Request A Photo, 6. Chat On The Phone, 7. Meet When YOU Are Ready, 8. Watch For Red Flags, 9.  Meet In A Safe Place, 10. Take Extra Caution Outside Your Area, 11. Get Yourself Out Of A Jam  FULL ARTICLE @ KVBC

Mark Brooks: Hmm, I wonder which companies provide background checks?  Anyone know of any?  Bad example, good advice.  Silly girl.  $19.95 is kinda cheap these days.  eHarmony is raising the bar in that respect.  I'd rather meet people who were more serious and committed (to the tune of $50 a month).  Wouldn't you?