PlentyOfFish May Be Worth $1 Billion - Online Personals Watch: News on the Online Dating Industry and Business

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Comments

Michael

I find it very humorous that you too think he was a one man show. There is no way a site with the traffic he talks about doesn't have more people reviewing and doing other things. Everybody, including you thinks it is a one man show. If it is considered a one man show he outsources support and review.

Of course if he couldn't say it was a one man show then the PR wouldn't be nearly as good.

I think it is fantastic but let's be honest with our self. If there weren't more people working on his site then there would be trash profile galore...it wouldn't be good.

But please stop with the non-sense of thinking he just barely started having help.

Fernando Ardenghi

How to honestly value PlentyOfFish or other dotcom company:

No more than
1.5 times its revenue
OR
15 times its profit (earnings after taxes, depreciation, etc)

so I think no more than USD10 millions.

"POF ..... is #2 in the US online dating market ...."

online dating market?

POF is an online dating site in the ads market!

POF gets its primary (and unique) revenue from ads, not from memberships (subscriptions) as Match, True, eHarmony and others do!


Kindest Regards,

Fernando Ardenghi.
Buenos Aires.
Argentina.
[email protected]

Sam Moorcroft, ChristianCafe.com

Fernando, your "valuation" model makes no sense. If Marcus is making more than $10M revenue per year, how can he be worth "no more than USD10 millions"?

How do you reconcile his traffic numbers with Facebook, which has a valuation now of $15B?

Ross Williams

It's a crazy, crazy world :o)

POF is the biggest free dating site by far - but in terms of revenue, it's generating what I would regard as a relatively small turnover compared with paid dating sites.

We are turning over well over $10/million per year already and turnover doubles every 12 months - but we'd find it hard to justify a $100million price tag let alone billions :o)

These kind of figures are all good fun but when it comes to people paying cold hard cash for businesses, it's only ever worth what someone will pay.

POF also has issue with scaling - the more members on a site, the more customer support needed to remove scammers, etc. With free sites, this can only be worse.

It's a great story and one I feel the industry should applaud as it brings online dating into the mainstream media and attracts investment attention to other dating sites which, as a company generating far more revenue than POF, I can only applaud.

Ross

Andrew Arnott

A couple of points here.

1. There is no way in Hell Markus runs POF alone, I don't care what he says. Collaboradate has a tiny % of the users POF does and I get 20+ customer service emails a day. He may be the only person on the books, but he has an army of independent contractors... Guaramteed.

2. POF is worth a lot of money, but just like friendster, being the biggest and the first only lasts for so long... something better is bound to come along.

3. The new Google/Myspace API will change the game in many many ways...

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