The Profitability of Backpage Las Vegas and Dating Sites
The dating industry is comprised of matchmakers, newspaper and magazine personal ads, telephone chat lines, singles bars, nightclubs geared toward singles, speed dating organizations and internet dating services. Internet dating services began to take shape with the advent of the first major player in the online industry, Match.com in 1995. Years later, Match.com has maintained its place as the best known, most reliable resource and largest network for online dating.
Since the start of the new millennium the online dating industry grew rapidly from year to year. The industry grew by 73% in 2002 and 77% in 2003. In 2004, however, those high numbers began to drop. The 2004 online dating market grew by only 19%. Former Vice President of romance for Match.com, Trish McDermott, reported a 154% growth in revenue, from $49.3 million in 2001 to $125.2 million in 2002. According to McDermott, earnings for the first quarter of that year amounted to $40.9 million; profits were $36.1 million in 2002 versus $2.7 million in 2001. “This is a massive business,” said Roben Farzad, a writer for SmartMoney magazine in September, 2005. “It’s hit an absolute home run.”
Just as websites such as gfrental.com have dramatically changed the escort business, the web has revolutionized the dating business and has brought affordable and convenient matchmaking to the masses. This market is a now a $1 billion business in the U S. Currently with the US market saturated with over 1000 dating websites, things are slowing down and leveling out.
Original growth statistics were approximately 70% a year, but by 2006, the growth of the industry slowed to just 10%. Dating website revenues grew only 4.5% last year. It is expected that this downward growth trend will continue through the year 2011. At present the online dating industry is a 700 million dollar industry. Because of the decline in industry growth, dating sites have focused on increasing conversions of viewers into paying subscribers in order to keep growing.
The single population over the age of 18 in the United States is estimated to be between 92 and 100 million people. Of that number, approximately 16 million have tried online dating services. Many have used a service such as GF Rental girlfriends for hire. The average price of online dating services is between $20 and $30 dollars a month. It was initially a very lucrative business to be in with online dating services soaring in popularity since 2001 and representing nearly 50% of the dating market’s value. As more and more singles migrate to free social networking sites, however, the profitability of dating services is narrowing to those services with the best reputations and largest network communities.
Europe and China are the next untapped markets. Off-line chains and matchmakers are posting moderate growth, but radio datelines and print personals continue to slide. Speed dating continues to do well, along with certain niche markets.”
Roughly 10 million internet users say they are single and looking for a romantic partner. Here are some of the ways they have used the internet for dating.
|Dating-Related Activities Online||Single and Looking Internet Users|
|Flirt with someone||40%|
|Go to an online dating website||37%|
|Ask someone out on a date||28%|
|Find a place offline, like a nightclub or singles event, where you might meet someone to date||27%|
|Been introduced to a potential date by a third party using email or instant messaging||21%|
|Participate in an online group where you hope to meet people to date||19%|
|Search for info about someone you dated in the past||18%|
|Maintain a long-distance relationship||18%|
|Search for info about someone you were currently dating or were about to meet for a first date||17%|
|Break up with someone you were dating||9%|
|Match.com Member Growth Statistics 2001-2005|
|May-01||1.8 million members||300,000 new members per month|
|June 2001||2 million members|
|October 2001||2.5 million members||220,000 paying subscribers|
|February 2002||382,000 paying subscribers|
|Mar-02||2.75 million members||382,150 paying subscribers|
|May-02||3 million members||527,000 paying subscribers|
|Jul-02||3.25 million members||527,000 paying subscribers|
|Aug-02||604,000 paying subscribers|
|Oct-02||4.5 million members||653,000 paying subscribers|
|Dec-02||5 million members||653,000 paying subscribers|
|Sep-03||18 million members||857,000 paying subscribers|
|Jan-04||20 million members||910,000 paying subscribers|
|Apr-04||974,000 paying subscribers|
|Feb-05||15 million members||32 countries, 18 languages, 6 continents|