Angelyn Gan 21:49, 23 Sep 2005 (EST)
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The basic business model is the shopkeeper model, where the setting up of a store attracts potential customers by displaying a product or service. However, business models of service firms are more complicated than just manufacturers and resellers. (Wikipedia: Business Models)
Online dating is seen as a profitable business initiative, with numerous dating and relationship-oriented websites which are complimentary businesses supporting the new online dating marketplace, simultaneously generating revenue.
Dating sites are increasing not only in the area of consumer usage, but also in terms of the industry’s progression toward providing both online interaction and the business models to support online communities. The online portion of the dating services industry in the US makes up a third of the total revenues (LC, 2003). In November, Florida-based Market Data Research stated that the industry in the US was worth $917 million (Gardiner, 2003). It has been found out that practically one in five men who go online for any reasons say that they check out the dating sites at least once a month. For further evidence of this growing trend, top personals Website Match.com boasts of 600,000 customers forking over $25 a month for membership, suggesting a booming business opportunity. Another online dating site, uDate.com, raked in approximately $1.5 million in June 2001. (Aronow, 2002)
3G dating services that was launched in the UK is the new initiative in the online dating industry. It marks the beginning of what could be a frenzied battle for market share in this potentially lucrative area is gradually developing. One such service is The 3G Dating Agency, a private company that has gained the backing of mobile phone manufacturing giant Samsung, as well as other networking organisations such as Vodafone, Virgin Mobile and 3.(The 3G Dating Agency)
Competitors are constantly finding new and innovative ways to continue to look for the one factor that distinguishes them from the others in the crowded market, while at the same time convincing users that their services are worth paying for. With the increasing number of consumers who access online personal sites, only a handful of them who are willing to pay for it. Hence, most dating sites offer both free and paid services. These companies are finding that despite conventional thinking, single individuals are now willing to pay to be part of an online community that helps them find a mate while screening out the predators, as there is a whole dating community on the computer and people online date for particular reasons such as convenience, efficiency, and options.
Revenues for all online dating companies usually stem from advertising in the first stage and membership fees in a later stage. Costs are mainly marketing (up to 50%) - in order to grab the market share - as well as HR & IT. (Loïc Le Meur, 2003). The advancement of new technologies will assist in the progression of the online dating industry by providing better alternatives for consumers to interact as new business models take shape.
Online Dating - Internet Chatrooms
Online Dating - Service Providers
Online Dating - Emotional Attachment in Online Dating
Online Dating - Imagined Virtual Communities
Aronow, T, (2002) Online dating, is it our future? Retrieved on Spetember 21, 2005 from http://voice.paly.net/view_story.php?id=358
Gardiner, D. (2003) Love in the Age of Spam: Online Dating Sites are Slashing the Sleaze to Help Grownups Find Mates Retrieved on September 17, 2005 from http://www.findarticles.com/p/articles/mi_m0NTN/is_2003_Feb/ai_104732950
Gardiner, D. (2003) Love in the Age of Spam: Online Dating Sites are Slashing the Sleaze to Help Grownups Find Mates Retrieved on September 17, 2005 from http://www.findarticles.com/p/articles/mi_m0NTN/is_2003_Feb/ai_104732950
Loïc Le Meur (2003) The Dating Industry - A Closer Look Retrieved on 22 September, 2005 from http://www.loiclemeur.com/english/2003/11/the_dating_indu.html
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