PLENTYOFFISH - Oct 23 - A lot of people have been setting up white label dating sites the last few years. Here are the most important factor in making money:
1. Never agree to the default terms a white label dating service offers you such as the default rates 50 - 50%.
2. Constantly negotiate.
3. Always make sure both your initial and rebill percent rates are really high.
The full article was originally published at PlentyofFish blog, but is no longer available.
Mark Brooks: A few more things...
4. Make sure they have solid email marketing. The best services do email marketing for you.
5. Make sure they offer plenty of payment options to users, especially important for Europe.
6. Make sure they offer niching, if you're planning on running niche dating. (i.e. Christians only meet Christians, gays only meet gays, etc)
7. Test a few services to see which converts the best. Payouts are one thing, but if the white labeler sucks at converting and retaining, then their payouts are moot.
I didn't respond on the original article, but I shall do so here.
I'm not quite sure what qualifies Markus to be a white label expert but if he were, he'd know that conversion, retention and yield amongst white label providers differ tremendously.
It's easy for a white label platform to convert a member by sending them fake messages (sometimes known as "admin messages") - it's however, far more difficult to keep that member on the site for 4-6 months, increase yield, then bring the member back a few months later to bill again.
That's why the lifetime value of members on our platform is so much higher than our competitors - which means partners on 50% rev share on our platform will still generate far more money in their pocket than having 80% rev share on other platforms. We simply make much more money from each of their members - this is why we've never lost a partner to other providers promising 80%+ revenue share.
Some providers will promise you a huge slice of cake - we simply bake a much bigger cake.
Incidentally, I've never seen PoF run a white label site on our platform - and given we've got 80% of the white label industry his experience isn't particularly balanced (though it helps me understand why he would have such a strange perspective).
I should also say that I regard the timing of Markus's post to be suspect - on the weekend of our partner conference and within a week of him losing a big (and expensive!) court case to a partner on our platform. I suspect it's simply sour grapes.
It's not an issue I wish to get into here, but I simply want to correct his, at best, well intentioned advice.
Best wishes,
Ross
Posted by: twitter.com/rosswilliams | Oct 25, 2011 at 02:15 PM
You know your site and Cupid aren't the only white label dating sites.. There are a ton of them out there and we make millions a year running white label dating sites, Neither of which are on cupid or whitelabeldating.
We also have a lot of users on the adplatform that run white labels of one kind or another. If they get a higher cut they can spend more.
Posted by: Markus | Oct 25, 2011 at 10:20 PM
Markus / Ross: now that you guys are done with the lawsuit are we allowed to promote WLD-powered sites on POF ads yet?
Ross: do you offer any partners higher rev share based on volume or other negotiations?
Markus: can you elaborate on POF's white label sites? what are the sites?
Thanks,
John
satisfied customer of both POF ads and WLD sites :)
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