Online dating is a big business. But how do app makers convince users to shell out for premium subscriptions?
The answer lies in a mix of bundled features and a la carte options. Depending on the model, these offerings can range from consumable in-app purchases like virtual gifts to credit that enhances profile visibility.
Free vs. Premium
Despite the heavy advertising for paid upgrades on apps like Tinder and Bumble, less than three percent of sgbb online daters pay. Even so, services such as Match offer subscription packages with options to bolster a person’s profile and increase response rates.
Match’s Standard Plan, for example, costs $19 a month for one year and offers premium features such as one “discover” like a day, the ability to message matches who have not yet liked you, a profile boost, activity reports and read receipts. The site claims it will treble a person’s chance of finding love.
While it is possible to find a romantic partner without paying for an online dating service, paid sites and apps typically provide more reliable, upstanding users and are worth the cost for those seeking a long-term relationship. Regardless, the decision is ultimately up to each individual. In either case, it is important to be patient and put forth time and effort on both the free and premium dating services.
Benefits of Premium Dating Service Models
Online dating is a popular way for people to find matches that can lead to long-term relationships. With a subscription model, users can access premium features that can improve their success rate in finding the right match for them.
Like other network businesses, dating sites face the challenge of growing their audience and monetizing. To balance these objectives, many dating apps use social referral offers where new members trade revenue to get access to premium features.
This monetization strategy is easy to implement in dating apps and is a steady source of revenue. In addition, it helps keep the app engaging for paid subscribers who want to continue using its features. Other monetization strategies include in-app purchases and ads, which can generate good revenue for dating apps. Ads can be shown to all users or limited to paying members only. Moreover, push notifications can also help dating apps generate additional income from their user base.
Evaluating Online Dating Subscription Plans
Online dating is an emotionally charged experience, involving feelings of insecurity, rejection and even heartache. This makes it an especially difficult industry to break into, which may explain why the top dating apps have experienced slower user growth as of late.
Nonetheless, new players still have a chance to compete with the dominant brands. Specifically, they could focus on converting the top 1% of users into paying subscribers by providing them with additional premium features, such as increased ways to show interest in potential matches.
In addition to subscription tiers, dating apps also offer multiple other methods of monetization, such as ad space. Many ad networks—including restaurants, flower delivery services, jewelry stores and travel agencies—target dating app users with tailored ads. This approach can help increase ad conversion rates and offset subscription fees. As a result, it is important for online dating companies to build a well-thought-out revenue model. Our UA experts at KeyUA can assist you in finding the right monetization strategy for your dating app idea.
Online Dating Membership Tiers
Regardless of whether they charge by the month or year, online dating services must compete for users during a time when consumers are under financial pressure. This explains why more online dating apps are testing premium tiers that offer extra benefits like better matches.
Match Group, which owns a fleet of dating apps, recently added a Hinge subscription plan that costs around $50 per month and is examining user interest in a premium tier for Tinder that could cost as much as $500 a month. Boosting subscription rates has become an important goal for the company as it struggles to increase overall paid memberships, which have declined in recent quarters.
Match hopes that converting even a small fraction of its users to this new tier will generate tens of millions in annual revenue. The company also believes that offering a premium option will help it differentiate itself from competitors that have largely focused on boosting free messaging features for their entire user base.