WLD -- July 28 -- ‘Startups: Your Online Business Will Fail’ was an article on the site Startup Professional Musings. The post states that online dating sites will fail because:
- Direct competition is huge
- No longer a growth market
- Entry cost is very high
- Intellectual property is tough
- Social networks and search engines will lead the way
Some of the points are only valid when you’re talking about building a site from scratch. By launching a dating site with a white label provider, partners are provided with a database of active members, so that their site is never empty. The UK dating industry is worth £600m a year according to Hitwise, whilst Juniper Research predicts the number of paying members on dating sites will rise to 6M in the next 3 years, from 2.6M in 2006.
The full article was originally published at WLD blog, but is no longer available.
Since when does hitwise make market predictions and since when does the UK generate more dating revenues than the US?
Posted by: [email protected] | Jul 28, 2009 at 06:57 PM
Great article, and very true. I think it's fair to say with all the free dating sites popping up like Plenty of Fish and Dating DNA; that this market is due for consolidation.
Look for some major acquisitions in the coming months!
Posted by: Julie Trump | Jul 28, 2009 at 07:12 PM
Dear Mr. Brooks:
The world market remains enormous for companies wanting to launch a new online dating site;
but
The only way I see to enter the market and revolutionize the Online Dating Industry is offering a high quality compatibility matching method to dissatisfied/past customers of Online Dating sites, trying to steal their users; and to prospective customers of Offline Proposals.
Online Dating Industry should kill all types of Offline Proposals.
Regards,
Fernando Ardenghi.
Buenos Aires.
Argentina.
[email protected]
Posted by: Fernando Ardenghi | Jul 28, 2009 at 10:08 PM
Fernando, nobody else will say so I'll say as I've not had my coffee this morning yet - for the love of God will you STOP plugging your compatibility matching on every single comment you make on this site and Online Dating Post. If it was the answer it would have been done - people far cleverer than you or I don't believe it is so please stop hijacking every blog post to talk about it.
And just to say there's a quite hilarious video response to the subject of this post by a guy called Sach at http://www.whitelabeldating.com/blog/2009/07/youre-online-dating-site-will-fail.php
Posted by: Ross Williams | Jul 29, 2009 at 03:24 AM
Yes can be true but be aware that 50-50 or even 70-30 split will hardly work for your pocket. Since after you spend 50%on your marketing it will be nothing left for youself
Posted by: Max | Jul 29, 2009 at 03:25 AM
Max - working on a revenue share basis is actually a good thing for partners, after all it's in our best interest for them to earn as much as possible as it earns us more too. Wouldn't you rather that than we charged an upfront fee and then had no vested interest in making your site work?
Posted by: Mel Kirk | Jul 29, 2009 at 04:08 AM
In response to the first comment, the UK online dating market is worth £95m (2009) according to leading market research firm Mintel (who specialise in predicitons!), who carried out a comprehensive study earlier this year. They predict the market will grow by just over 50% to £150m by 2014.
Compared to many business sectors the online dating sector IS growing healthily and those sites that can provide a quality service to thier customers will continue to prosper.
Posted by: Matthew Pitt, MD, The Dating Lab | Jul 29, 2009 at 05:41 AM
Ross, you crack me up:-) I think you summed up what every other reader out there is thinking.
PLEASE PLEASE PLEASE Fernando, we are *begging* you.
STOP!
Posted by: Sam Moorcroft, ChristianCafe.com | Jul 29, 2009 at 09:05 PM
For Ross&Sam
You do not know the emails I receive!
They mostly say:
"Hello Mr. Ardenghi, having recently read one of your postings regarding eHarmony and scientific matching systems in general, I felt compelled to write ...... "
"Fascinating, Fernando. Thank you very much ........ Thanks again. You are really helpful. "
"Being a silent observer on OPW I have followed many of the interesting discussions you have led there."
"I've been reading onlinepersonalswatch for a while and am very impressed with the thoughtful comments you make. We are looking at investing in this space and am curious if you have any thoughts on free, ad-based on line dating sites and how viable they can become?"
"You always leave though-provolking comments and insights on dating blogs"
"I am writing you from Texas. I have had the good fortune of working with a prominent forensic talk show psychiatrist and author on a project that he is launching. .... I think that what you said many scientists are too busy to read their colleagues papers is 100 percent right. Most of all, I think that you are correct when you say: The main problem to solve IS NOT to design personality tests for dating. The main problem to solve IS TO invent a precise way / method to COMPARE the results of the tests between each others"
For Ross&Sam information
The Online Dating Industry needs a revolution, a Big Earthquake, not stupidities with more bells and whistles.
The Online Dating Industry needs innovation. But innovations will definitively come from new discoveries on Theories of Romantic Relationships Development.
Regards,
Fernando Ardenghi.
Buenos Aires.
Argentina.
[email protected]
Posted by: Fernando Ardenghi | Jul 29, 2009 at 10:19 PM
...and, you're the one to bring us that revolution, correct?;-)
Does this revolution involve making money? 'Cause someone should definitely show me (and esp. Ross; that guy doesn't know sense from cents) how to do that. Please help us.
(off camera): "No, it's fine there beside the Maybach. Yes, I know I had you put it beside the Bentley yesterday. The green one. No, the silver one was on the other side. Yes, it was. Look, how it have been anywhere near the Murielago? That one was on the other side of the hangar. No, the yellow one, not the red one. That's the Enzo! Man!
Look, it couldn't have been on that side, and I'll tell you how I know - 'cause the jet was in Hawaii all of last week and has been sitting there ever since, in that exact spot, that's why! Why can't I get good help any more? Man!
Ahem, uh, sorry, where was I? Pontificating, oh yes...
Posted by: Sam Moorcroft, ChristianCafe.com | Jul 29, 2009 at 11:16 PM
Mel,
keen to see prove of that. Does any WLD sites which you actually own works ? singles365 ? adultsingles365.com ? or may be recent datingagency.com .
All of them is small.
Does it clear sign that WLD team really know business and there solutions is optimal technically for there clients? Hmm I do not think so...
Max
Posted by: max | Jul 30, 2009 at 08:19 AM
Max - You're keen to see proof that working on a revenue share basis is good for our partners? Considering that many of our partners are making 5 figures sums each month, I think that speaks for itself.
If you're asking for proof that we're interested in growing our partners sites? Why else would we have a dedicated team of account managers whose sole jobs it is to work on growing the sites - meeting with our partners to help them work on their branding and marketing campaigns? Oh and the whole team dedicated on focusing on improving functionality and new features in addition to direct to consumer marketing on behalf of our partners to encourage conversions? Hmm I think we do the best possible job for our partners actually.
We love what we do here at White Label Dating... we're passionate about our jobs - but then I guess that's why we're also the second largest paid dating company in the UK!
Posted by: Mel Kirk | Jul 30, 2009 at 08:34 AM
One last thing, that I should have added is our business model is different to that of some of our competitors - we don't actively try to grow our own sites as our focus is our partners. We don't compete directly with our partners, we try and help them.
Posted by: Mel Kirk | Jul 30, 2009 at 09:10 AM
Max - as Mel said, unlike some white label companies (you know who I'm talking about here Max) we don't compete with our partners. We have a small portfolio of sites - enough to know what works for our partners and put our money where our mouth is - but we don't compete with our partners like some ;)
Posted by: Ross Williams | Jul 30, 2009 at 09:59 AM
I think it is important that white label organisations in all industries have their own sites to do multi variable testing on for new features/functionalities and test marketing campaigns. This way they can learn what works and what doesn’t, they can use this knowledge to pass on to their partners/affiliates. I would expect any advice from an account manager to be tried and tested before I put my own money into promoting it however there is a clear line between using your own sites to test with and using your own sites to compete with partners/affiliates. This is a definite turn off for any potential partner/affiliate.
Posted by: John Ardman | Jul 30, 2009 at 10:06 AM
Mel and Ross ok ok it seems WLD has a good business model. Will speak now with my team in order to understood why your "top partners who making 5 figures sum" all making "plan B" sites with us now :-)
Posted by: max | Jul 30, 2009 at 11:51 AM
Max - many of our partners started off with sites on many platforms to test for themselves which worked best for them. Feedback from these people is that our conversion rates were simply better than any of our competitors which is why they chose to progress with us. I would suggest speaking to your team is a good idea as I would be very surprised to find these partners starting further sites with you when they've had negative experiences in the past.
Top brands prefer the peace of mind of working with a UK company. We have over 60 people employed and stationed in Windsor at this stage. A far cry from the outcrop wild west of the Ukraine that is your base ;) Our affiliates, partners and the large signature brands that we work with have peace of mind knowing that we're close to them not only in locale, but in also language.
Posted by: Mel Kirk | Jul 30, 2009 at 12:06 PM
Oh ok so now Ukraine against Britain it seems ! What are shame then for your guys proud French overtake English dating business. Paris Paris :-)
In Crimea now. studying Czar Russia and Great Britain history. Are you aware of the past my friend :-) ?
Posted by: max | Jul 31, 2009 at 06:41 AM
I think I recall that one. I believe Czar Nicholas was assassinated? And his son agreed to give up??
Not a great example Max.
John
Posted by: John Ardman | Jul 31, 2009 at 07:14 AM
John, fact is Crimea never belong to English-Turkish alliance. And mistake to participate in Crimean war cost England a lot.
Posted by: max | Aug 03, 2009 at 12:39 AM
You guys are funny. We miiiight be getting a little off topic now. :-)
Posted by: Mark Brooks | Aug 03, 2009 at 07:25 AM
yeah we are but ukrainians are very peaceful normally :-) and I not started comparison of wild Ukraine and respectable Windsor. So we are keen to invite Mel and Ross to Ukraine to show how wild we are :-)
Posted by: max | Aug 03, 2009 at 10:09 AM