Profitable Business of Online Dating Service

Saturday, November 22, 2008 4:10
Posted in category Industry Review

With the telecommunications industry continuing exploding at great pace, the online dating business is developing accordingly at dramatic speed. Big companies like Yahoo, Microsoft, AOL and even Google recognized this great global business opportunity of online services with personal ads and are getting involved in this already explosive business now.
Steve Smith has created one of the biggest successes in the business, via recognizing early on a truth that referral marketing methods were more ideally suited to services, rather than products. Ever since then, the online dating is seen as a very profitable business initiative. Revenues for all online dating companies usually stem from advertising in the very beginning and then membership fees in a later stage. There are numerous dating and relationship-oriented websites, which are complimentary businesses supporting the new online dating marketplace, simultaneously generating revenue. Increasing dating sites are coming into being not only in the terms of consumer usage, but also in the area of the industry’s progression towards providing both online interaction and the business models to support online communities.
In the US, the online portion of the dating services industry makes up around 1/3 of the total revenues, while 3G dating services launched in the UK is another new initiative in the online dating industry, which marks the beginning of what could be a frenzied battle for market share in this potentially lucrative area is gradually developing. The strengths of new technologies will assist in the progression of the online dating industry through offering better alternatives for consumers to interact as new business models take shape.

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