Top dating products
Obviously, anyone starting a new company in dating should try to understand investor biases in this sector.
This essay also compliments a previous one on operating, from How About We co-founder Aaron Schildkrout, now at Uber, who also wrote about his experiences.
Here’s a simple fact: It’s super hard to get a dating product funded by mainstream Silicon Valley investors, even though it’s a favorite startup category from 20-something entrepreneurs.
online games about dating - Top dating products
In order to make the ROI work, you have to calculate your customer acquisition cost (CAC) versus your lifetime value (LTV) and make sure you are making enough money to support both the marketing as well as operations.
In Saa S, you’d try to get a 3X ratio for CAC: LTV but that’s building in some profit for the company – a dating startup might be able to run it closer to the metal to get their initial growth.
Every churned customer is a new customer you’ll have to acquire just to get back to even.
When you look at a successful subscription service like Netflix or Hulu, you might find a churn rate of 2-5% per month, and you can calculate the annual churn through the following: If you have an 70% annual churn rate, you have to have a strategy to replace almost your entire customer base each year, plus a bunch of percentage points to drive topline growth.
Dating is niche and has a shelf-life All this churn is especially complicated by the fact that the dating market at any given time is pretty niche.