However, the market size might be much smaller than the others.
At the same time, their focus on casual dating lowers churn and they can monetize via microtransactions. In the end, the lack of exits might be more the result, not the cause, of investor disinterest in dating.
People are willing to travel to meet each other, but only so much. Again, this is an area where the new mobile dating apps excel.
With most subscription products, the more you improve your product, the lower your churn. Same with Facebook or Whatsapp.
To make this work, each city needs to get spun up the dating startup way that on-demand services are spun up, which is one of the reasons why local expansion has remained expensive and unscalable. Dating is niche and has a shelf-life All this churn is especially complicated by the fact that the dating market at any given time is pretty niche.
So what do the churn rates look like for a dating product? This essay also compliments a previous one on operating, from HowAboutWe co-founder Aaron Schildkrout, now at Uber, who also wrote about his experiences.
Andrew Chen About me Discussion forums. City-by-city expansion sucks Dating products inherently rely on a local marketplace, and bootstrapping a series of marketplaces is very hard, and expensive.
Investor pattern-matching is lazy and often sucks. Fixed some math, thanks Hacker News commenters. Obviously, anyone starting a new company in dating should try to understand investor biases in this sector. Thanks to my friend Jason Crawford for adding this carbon 14 absolute dating. You read that right. They have dating startup experience in local and dating, and the deep pockets to squeeze profit from the category.
In order to make the ROI work, you have to calculate your customer acquisition cost CAC versus your lifetime value LTV and make sure you are making enough money to support both the marketing as well as operations.