Luther12
Elder Lister
A bit dated but the principle still holds, I believe. Read on.
For one thing, their business model exacerbates a problem found on every dating site:
For another thing, as I'll explain, pay sites have a unique incentive to profit from their customers' disappointment.
As a founder of OkCupid I'm of course motivated to point out our competitors' flaws. So take what I have to say today with a grain of salt. But I intend to show, just by doing some simple calculations, that pay dating is a bad idea; actually, I won't be showing this so much as the pay sites themselves, because most of the data I'll use is from Match and eHarmony's own public statements. I'll list my sources at the bottom of the post, in case you want to check.
The "20 Million Members" Paradox
eHarmony claims over 20 million members on their homepage, and their CEO, Greg Waldorf, reiterates that number regularly in interviews1. If your goal is to find someone special, 20 million people is a lot of options—roughly a quarter of all singles in the U.S. This sounds awesome until you realize that most of these people can’t reply, because only paying customers are allowed to message.
So let's now ask the real question: of these 20 million people eHarmony claims you can flirt with, how many are actually able to flirt back? They closely guard their number of paid subscribers, with good reason. Nonetheless, we are able to deduce their base from known information. We'll give eHarmony the highest subscribership possible.
So, having given eHarmony the benefit of the doubt at every turn, let's look at where that leaves their site:
Yes, only 1/30th of the "20 million users" they advertise is someone you can actually talk to. That's the paradox: the more they pump up their membership totals to convince you to sign up, the worse they look.
First I want to show you what 29 to 1, advertised people to real, feels like. Here are some single, attractive OkCupid users.
And here are those same people behind a subscriber wall. That's pay dating in a nutshell.
Match.com's numbers are just as grim. They're a public company, so we can get their exact subscriber info from the shareholder report they file each quarter. Here's what we have from Q4 20094:
Pay Sites Want You To Message These Dead Profiles
Remember, sites like Match and eHarmony are in business to get you to buy a monthly subscription. There's nothing wrong with profit motive, but the particular way these sites have chosen to make money creates strange incentives for them. Let's look at how the pay sites acquire new subscribers:
As you can see from the flow chart, the only way they don't make money is to show subscribers to other subscribers. It's the worst thing they can do for their business, because there's no potential for new profit growth there. Remember: the average account length is just six months, and people join for big blocks of time at once, so getting a new customer on board is better for them than squeezing another month or two out of a current subscriber. To get sign-ups, they need to pull in new people, and they do this by getting you to message their prospects.
If you're a subscriber to a pay dating site, you are an important (though unwitting) part of that site's customer acquisition team. Of course, they don't want to show you too many ghosts, because you'll get frustrated and quit, but that doesn't change the fact that they're relying on you your messages are their marketing materialsto reach out to non-payers and convince them, by way of your charming, heartfelt messages, to pull out their credit cards. If only a tiny fraction of your message gets a response, hey, that's okay, you're working for free. Wait a second…you're paying them.
Now let's look how this skewed incentive affects the dating cycle, especially on sites like Match.com, where it's possible to for users set their own search terms.
The Desperation Feedback Loop
Even more so than in real life, where fluid social situations can allow either gender to take the "lead", men drive interactions in online dating. Our data suggest that men send nearly 4 times as many first messages as women and conduct about twice the match searches. Thus, to examine how the problem of ghost profiles affects the men on pay dating sites is to examine their effect on the whole system.
There are two factors at play:
The effect of the second fact is to magnify the effect of the first. For a user trying to meet someone under such constraints, a feedback loop develops. Here's what happens to the average guy:
Basically, because the likelihood of reply to each message starts so low, the average man is driven to expand his search to women he's less suited for and to put less thought (and emotional investment) into each message. Therefore, each new batch of messages he sends brings fewer replies. So he expands his criteria, cuts, pastes, and resends.
In no time, the average woman on the same site has been bombarded with impersonal messages from a random cross-section of men. Then:
The Pudding
Finally, in the spirit of "don't take my word for it", here's how eHarmony and Match.com themselves show that their sites don't work.
This is from Match's 2009 presskit:
Okay, Match is double counting to get "12 couples", since a couple that gets married also gets engaged. So we have 6 couples per day getting married on the site, or 4,380 people a year. Let's round up to 5,000, to keep things simple. My first observation is that Match.com made $342,600,000 last year5. That's $137,000 in user fees per marriage.
Now here's where the demographics get really ugly for them.
It turns out you are 12.4 times more likely to get married this year if you don't subscribe to Match.com.
I figured it out like so:
Remember this is the minimum ratio, because from Match's perspective, we've made a lot of very favorable assumptions along the way. And it also doesn't matter that some portion of Match's customer base is overseas, because however you account for that in their subscriber base, you also have to adjust their marriage total accordingly.
. . .
eHarmony seems to do quite a bit better than Match, claiming in their ads to marry off 236 people a day:
Their higher rate shouldn't be too surprising, because eHarmony's entire site philosophy centers around matrimony, and furthermore that's the primary reason people go there. It's explicitly not a place for casual daters.
As they've told us, their member base of 750,000 people turns over every 6.5 months, which means that nearly 1.39 million people go through eHarmony's "doors" each year. eHarmony fails at least 93.8% of the timeFrom the ad, we can see that just 86,140 of those subscribers get married, a mere 6.2% of the people who paid the company to find them a mate. And what of the other 93.8%, the 1,298,475 people who do not get married and then leave the site? Those people paid an average of $190 each for a personality quiz.
In Conclusion
A major selling point for the big for-pay dating sites Match and eHarmony is how many millions of members they have, and they drop massive numbers in their press releases and in talks with reporters. Of course, there's a solid rationale to wanting your dating site to seem gigantic. When people look for love, they want as many options as possible.
However, as I've shown above, the image these sites project is deceiving. So next time you hear Match or eHarmony talking about how huge they are, you should do like I do and think of Goliath—and how he probably bragged all the time about how much he could bench. Then you should go sign up for OkCupid.
For one thing, their business model exacerbates a problem found on every dating site:
For another thing, as I'll explain, pay sites have a unique incentive to profit from their customers' disappointment.
As a founder of OkCupid I'm of course motivated to point out our competitors' flaws. So take what I have to say today with a grain of salt. But I intend to show, just by doing some simple calculations, that pay dating is a bad idea; actually, I won't be showing this so much as the pay sites themselves, because most of the data I'll use is from Match and eHarmony's own public statements. I'll list my sources at the bottom of the post, in case you want to check.
The "20 Million Members" Paradox
eHarmony claims over 20 million members on their homepage, and their CEO, Greg Waldorf, reiterates that number regularly in interviews1. If your goal is to find someone special, 20 million people is a lot of options—roughly a quarter of all singles in the U.S. This sounds awesome until you realize that most of these people can’t reply, because only paying customers are allowed to message.
So let's now ask the real question: of these 20 million people eHarmony claims you can flirt with, how many are actually able to flirt back? They closely guard their number of paid subscribers, with good reason. Nonetheless, we are able to deduce their base from known information. We'll give eHarmony the highest subscribership possible.
So, having given eHarmony the benefit of the doubt at every turn, let's look at where that leaves their site:
Yes, only 1/30th of the "20 million users" they advertise is someone you can actually talk to. That's the paradox: the more they pump up their membership totals to convince you to sign up, the worse they look.
First I want to show you what 29 to 1, advertised people to real, feels like. Here are some single, attractive OkCupid users.
And here are those same people behind a subscriber wall. That's pay dating in a nutshell.
Match.com's numbers are just as grim. They're a public company, so we can get their exact subscriber info from the shareholder report they file each quarter. Here's what we have from Q4 20094:
Pay Sites Want You To Message These Dead Profiles
Remember, sites like Match and eHarmony are in business to get you to buy a monthly subscription. There's nothing wrong with profit motive, but the particular way these sites have chosen to make money creates strange incentives for them. Let's look at how the pay sites acquire new subscribers:
As you can see from the flow chart, the only way they don't make money is to show subscribers to other subscribers. It's the worst thing they can do for their business, because there's no potential for new profit growth there. Remember: the average account length is just six months, and people join for big blocks of time at once, so getting a new customer on board is better for them than squeezing another month or two out of a current subscriber. To get sign-ups, they need to pull in new people, and they do this by getting you to message their prospects.
If you're a subscriber to a pay dating site, you are an important (though unwitting) part of that site's customer acquisition team. Of course, they don't want to show you too many ghosts, because you'll get frustrated and quit, but that doesn't change the fact that they're relying on you your messages are their marketing materialsto reach out to non-payers and convince them, by way of your charming, heartfelt messages, to pull out their credit cards. If only a tiny fraction of your message gets a response, hey, that's okay, you're working for free. Wait a second…you're paying them.
Now let's look how this skewed incentive affects the dating cycle, especially on sites like Match.com, where it's possible to for users set their own search terms.
The Desperation Feedback Loop
Even more so than in real life, where fluid social situations can allow either gender to take the "lead", men drive interactions in online dating. Our data suggest that men send nearly 4 times as many first messages as women and conduct about twice the match searches. Thus, to examine how the problem of ghost profiles affects the men on pay dating sites is to examine their effect on the whole system.
There are two factors at play:
The effect of the second fact is to magnify the effect of the first. For a user trying to meet someone under such constraints, a feedback loop develops. Here's what happens to the average guy:
Basically, because the likelihood of reply to each message starts so low, the average man is driven to expand his search to women he's less suited for and to put less thought (and emotional investment) into each message. Therefore, each new batch of messages he sends brings fewer replies. So he expands his criteria, cuts, pastes, and resends.
In no time, the average woman on the same site has been bombarded with impersonal messages from a random cross-section of men. Then:
The Pudding
Finally, in the spirit of "don't take my word for it", here's how eHarmony and Match.com themselves show that their sites don't work.
This is from Match's 2009 presskit:
Okay, Match is double counting to get "12 couples", since a couple that gets married also gets engaged. So we have 6 couples per day getting married on the site, or 4,380 people a year. Let's round up to 5,000, to keep things simple. My first observation is that Match.com made $342,600,000 last year5. That's $137,000 in user fees per marriage.
Now here's where the demographics get really ugly for them.
It turns out you are 12.4 times more likely to get married this year if you don't subscribe to Match.com.
I figured it out like so:
Remember this is the minimum ratio, because from Match's perspective, we've made a lot of very favorable assumptions along the way. And it also doesn't matter that some portion of Match's customer base is overseas, because however you account for that in their subscriber base, you also have to adjust their marriage total accordingly.
. . .
eHarmony seems to do quite a bit better than Match, claiming in their ads to marry off 236 people a day:
Their higher rate shouldn't be too surprising, because eHarmony's entire site philosophy centers around matrimony, and furthermore that's the primary reason people go there. It's explicitly not a place for casual daters.
As they've told us, their member base of 750,000 people turns over every 6.5 months, which means that nearly 1.39 million people go through eHarmony's "doors" each year. eHarmony fails at least 93.8% of the timeFrom the ad, we can see that just 86,140 of those subscribers get married, a mere 6.2% of the people who paid the company to find them a mate. And what of the other 93.8%, the 1,298,475 people who do not get married and then leave the site? Those people paid an average of $190 each for a personality quiz.
In Conclusion
A major selling point for the big for-pay dating sites Match and eHarmony is how many millions of members they have, and they drop massive numbers in their press releases and in talks with reporters. Of course, there's a solid rationale to wanting your dating site to seem gigantic. When people look for love, they want as many options as possible.
However, as I've shown above, the image these sites project is deceiving. So next time you hear Match or eHarmony talking about how huge they are, you should do like I do and think of Goliath—and how he probably bragged all the time about how much he could bench. Then you should go sign up for OkCupid.