Start Online dating business model

Online dating business model

In all, the online dating industry generated approximately $1.2 billion in revenue in 2012.

The availability of financial data for publicly traded online dating companies makes it possible to compare a subject company to industry benchmarks and apply industry multiples.

However, when valuing an online dating company, it is important to use benchmarks and multiples based on companies that are similar to the subject company and be aware that multiples of certain publicly traded corporations as a whole may not necessarily reflect those of their online dating divisions.

The company generated approximately $197 million from adult dating and social networking platforms in 2012.[24] Availability of Private Purchase Transactions In addition to public companies, data regarding privately held companies can also provide a useful benchmark when valuing an online dating company.

A database of private transactions lists one online personal services company that was sold during the five year period from January 1, 2008 through December 31, 2012.

Online dating is now so important to the UK economy that the Office of National Statistics recently added online dating to its basket of goods and services to calculate UK inflation rates.

For this feature, we interviewed more than a dozen dating websites, representing more than five million members (although it should be noted that most people using a dating website will set up a profile with more than one company).

Specific factors that are unique for each business must be considered.

Fulcrum Inquiry performs business appraisals for online dating companies and other businesses.

is China’s largest online dating website.[21] The company allows users to post profiles for free and charges an initial messaging fee and a periodic subscription fee.

The company’s online services division generated $44 million in 2011.[22] Spark Networks offers online desktop and mobile dating websites. The company offers free membership but requires a subscription fee to message other users.

The top four publicly traded companies with online dating operations, ranked by market capitalization, are:[17] The price to earnings ratios of these companies range from 17.32 to 24.15.[18] As a whole, publicly traded companies in the internet information provider industry have a price to earnings ratio of 25.5.[19] Inter Active Corp.’s Match division provides subscription-based and ad-supported online personals through branded websites.