In a generation that uses the internet to build and keep connections, now than ever before, it is no surprise that dating apps and websites are cash cows. Dating app Tinder consistently ranks in the top 10 highest-grossing apps month on month, and recently Bumble has joined the ranks.
If you’re wondering how this is, then we’re here to tell you that it is because of well managed and intelligently structured subscription based business modelthat keeps the users coming back month after month.
Since signing up on almost all commonly used matchmaking platforms is free, they are structured to offer what is known as a freemium model. Turning free users into subscribers is the core business of the platforms.
Here are four ways dating apps and websites can use recurring billing solutionsand add-on features to grow their bottom line.
1. Memberships
By enabling recurring monthly memberships, apps can ensure better visibility to the members. Businesses can use these memberships to offer services such as seeing the match line-up, no cap on the daily connections possible, unlocking detailed filters to get better matches, accessing read receipts and more.
A paid subscription platform can also offer the user an ad-free experience. Across the board, these mechanisms have proven to prompt users into a subscription and continue to be a great monetization opportunity.
2. In-app One-time Packs
Dating apps have truly gamified online match-finding, and users are willing to spend extra for in-app currencies to advance their journey. For those users who are not invested enough to spend on monthly memberships, one-time purchases to get paid features for limited use can make for easier conversion. By giving these users a view into membership benefits, platforms can target them specifically turn users to subscribers.
3. Profile Ranking
By mapping variables such as usage, responsiveness, and other factors, matchmaking platforms create either a visible or invisible ranking system. Rewarding users based on their investment in finding a match, consistent usage of the app/website by recommending them to other similar members can help the overall app usage.
4. Brand Partnerships
With extensive analytics in place, matchmaking apps and websites can offer advertisers massive scope for targeted advertising. From geo-targeting area-specific information to showing branded content per activity time, preferences, and other demographics shortlists, brands can reach a very specific set of people.
Ads can also be used as paywalls against features where users can be incentivized with app currency when they engage with branded content. For example, by watching a brand video or completing an in-app survey, users can earn points/currency that can be redeemed on specific features. This model can be a win-win for all.
Concluding Remarks
In the current world, online matchmaking apps and sites are built for convenience. What once used to be all about getting dressed up, putting the best foot forward, and making a physical connection, is now being managed from the comfort of home. It is imperative that dating sites also extend that convenience in keeping with this consumer demand.
With an intelligent and adaptable recurring billing solution, these platforms can enable customers with a seamless upgrade experience. This, along with the option to avail add-on services as required, one will be able to set up a steady cash flow powered by engaged customers.
