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The Match Group will add another 109 million users to its ever-deepening pool who’ve already used the site, built a profile and whose activity makes the site’s algorithms stronger, says Paul Oyer, an economics professor at Stanford University.“It’s not so much that Match cares about the product, because it has plenty of substitutes that are just as good or better, but Plenty Of Fish has a customer base and Match is buying that,” said Oyer, who wrote the book Everything I Ever Needed to Know about Economics I Learned from Online Dating, after concluding that the online dating market closely resembled the labour markets he studied in his academic work.“Relative to other means by which you can acquire customers, this may be cost effective.”Some users are more active than others, and thus more valuable, but Match Group’s cost per user acquired works out to an average of US.28 each, which it’s certainly betting it can turn into more than that in profit.I have found that most women are only looking for a rich, perfect guy.
To thrive, dating websites need to amass a pool of engaged users that’s large and diverse enough to satisfy people’s varying tastes and is incessantly refilling to keep up with the relentless churn of wandering customers.
Sharing the news that he closed a US5 million sale to the Match Group — a subsidiary of New York City-based IAC — with his 75 employees and fielding their questions for an hour was surreal. The whole money part, that’ll come later at closing.”[np_storybar title=”Vancouver-based dating site Plenty Of Fish acquired by New York’s Match Group for US5M” link=”https://business.financialpost.com/fp-tech-desk/vancouver-based-dating-site-plentyoffish-acquired-by-new-yorks-match-group-for-us575m”] The Match Group, the New York-based company that owns Match.com, Ok Cupid and Tinder, says it has purchased Vancouver-based dating website Plenty Of Fish for US5 million in cash.
Read on [/np_storybar]Gone are the days when virtual dating was the last resort for desperate singles.
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