8 Reasons Online Dating Services Are Really A Business Dead End

8 Reasons Online Dating Services Are Really A Business Dead End

Aspiring entrepreneurs frequently approach me personally as an angel investor, touting their revolutionary idea for still another online dating site. We agree the requirement exists, with more than 91 million interested singles between the chronilogical age of 19 and 45 throughout the world. Yet very little one out of e-commerce makes hardly any money, as it is sold with a bigger range of challenges than almost every other possibilities we see.

Therefore, I encourage you to definitely examine these challenges as truth checks on your own business concept — dating or elsewhere — before spending your some time somebody money that is else’s vain.

1. The marketplace has already been oversaturated with competitors.

Relating to data, there are many than 5,000 online dating sites global with 1,000 brand brand new people showing up each year. In the event that you check your market on Bing and locate figures such as these, it is best to search for another possibility where in actuality the wide range of rivals you’ll find is significantly less than 10.

2. This company is suffering from the ‘Facebook model’ startup issue.

Numerous online business offerings, like this 1, require thousands or scores of current users before brand new users and advertisers have an interest to cover a real income. Therefore, the investment in money and time needed before payback is huge. Facebook spent $150 million before good cashflow.

3. Obstacles to entry are tough to establish.

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