Dating/social networking industry: sanity check

dotbeyonddotbeyond subscriber Posts: 1
edited April 2007 in Marketing
Competition in the dating industry is so fierce, that


"Match.com, a unit of IAC/Interactive Corp. (IACI.O: Quote, Profile,
Research), is accused in a federal lawsuit of goading members into
renewing their subscriptions through bogus romantic e-mails sent out by
company employees. In some instances, the suit contends, people on the
Match payroll even went on sham dates with subscribers as a marketing
ploy."

"Yahoo Inc.`s (YHOO.O: Quote, Profile, Research) personals service
is accused of posting profiles of fictitious potential dating partners
on its Web site to make it look as though many more singles subscribe
to the service than actually do."
source: Reutors

My partner and myself were involved into "niche" dating project. 3.5
years ago the team fell apart after "someone" disappeared with all
money. I put us in debt. The project was the largest in this niche. I
tried to find someone to invest some $$ and continue, but failed. The
site was abandoned till "better times". During this period it had its
own life, generated some money and doubled in size (43K users). We got
tired of having no life for such long period of time and decided that
the site must be sold. Since the only assets we had were: 2nd largest,
top10 (including some #1 positions priced at $3-4/click at Adwords)
inclusion on all relevant terms, 43K permanently incurable members, I
decided to spend time and prepare an overview of the market and
possibilities.
Everything that i found just blew my mind: competition is a "joke",
people make money on something, that shouldn`t be on the site at all
(PPC ads). I was so "inspired", that i wrote a full business plan, that
included brand new revenue generation tactic, improved member
acquisition scheme . CNN article about this niche came out, and all
"dating gurus" agreed to put the word out. Result: highest offer was
just under 6 figures. We agreed 10 days ago. The buyer keeps
delaying... Am I insane? Why do I see something that other people don`t?market research, statistics, demographics, advertising prices/opportunities

Comments

  • NuevolutionNuevolution subscriber Posts: 30 Bronze Level Member
    I wouldn`t be surprised at their tactics at all. Do you remember when Match.com was free with aol? They didn`t charge a penny abd for someone that was in college and just living day to day.. I had my share of ladies on the AOL match.com free network. Im talking about 1997 to be exact. So where do you think all this is going to end? When you say niche? just what exactly do you mean?
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