tech-company, business-plan, mobile-appsI am curious what is the business model of Tinder the dating app for iOS. I have Tinder on my iPhone and they do not charge users in the app there are no ads and it is the most popular dating app in App Store. Do they earn money now? What is their business model?
They have no revenue model at the moment. In other words they are in customer development mode and simply burning funds they raised for ops and salaries. With the massive user base (10 million MAUs), they can introduce freemium model which could range from limiting number of swipes to personal concierge services (I am just spit balling).
Even if 2% of their users pay for the premium features, they should be cash flow positive.
UPDATE: Tinder Swipes Right To Revenue, Will Add Premium Service In November -- this article covers statements by Tinder's CEO in their plans to introduce a freemium business model and estimates on revenue industry insiders.
Few months ago Tinder launched their “TinderPlus” plan, for example allowing users to have the “Undo” feature (suppose you UnLiked someone and now you want to have them back). The really interesting fact about the new “Plus” plan - is that its Age-Based, meaning if you’re 30+ you’ll be charge more than if you’re under 30 - which makes sense as usually the 30+ make more money (hopefully).
Spotify for example has a similar pricing model where they charge Students less than the Non-Student users - guess they know who can make or break their service and going for the young crowd.
They are going through with the freemium model. They are using their design constraints as a means of revenue. Last I checked it was still in testing and is available to limited amount of users. Tinder Is Finally Getting an Undo Button (For a Price)
Another form of advertising which I believe could generate additional revenue for tinder is ability to offer passporting or chosen location as a premium feature and the ability to ‘replay’ past dismissals.
I’ve also thought the idea of placing advertisements in the photo stream would be another method of generating revenue.
All content is licensed under CC BY-SA 3.0.