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Aspiring entrepreneurs often approach me as an angel investor, touting their innovative idea for yet another online dating site. I agree the need is out there, with over 91 million interested singles between the age of 19 and 45 around the world. Yet almost no one in this business makes any money, since it comes with a larger list of challenges than most other opportunities I see. Many business opportunities, like this one, need thousands or millions of existing users before new users and advertisers are interested to pay real money.
Thus, the investment in time and money required before payback is huge. For a new startup, the best way to assure survival is to file patents or other intellectual property to keep future competitors from copying your success. Dating is not a highly scientific process, and the first-mover advantage has already been taken. Think about this challenge for your best idea. In reality, dating is a form of social networking, so Facebook could easily enhance their services in this direction, if the market traction of others was evident.
Google or other search engines could add image-matching or other focus to capture this market.
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Tons more data is collected when I start filling out quizzes and surveys intended to find my match. Because I agreed to the legal jargon that gets me into the website, all of that data is up for sale—potentially through a sort of gray market for dating profiles. Anyone can purchase a batch of profiles from a data broker and immediately have access to the names, contact information, identifying traits, and photos of millions of real individuals.
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It might be hard to imagine or remember, but there was once a time when going on a date with a stranger you met online was a strange concept—frowned upon, even. Today, however, millennials have led the charge on transforming the dating industry and making online dating universally accepted. If you continue to have doubts, consider that there are now over 1, dating apps or websites looking to draw single men and women to their product, and to match them with one another.
Though matchmaking is one of the oldest industries in existence, online matchmaking is now having a moment of its own. This article explores the business of dating: the market size of dating apps in the U. According to the Pew Research Center , between and , online dating usage has tripled among those between the ages of 18 and
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