Wednesday, June 12, 2013

The main secret of PlentyOfFish (POF)

The main secret of PlentyOfFish (POF): As a free/freemium online dating site, it is only a marketing tool to send prospective customers to paid sites like Match, Chemistry, eHarmony, even Adult Friend Finder. POF collects big payments: the commissions for subscribers memberships payed from other online dating sites to POF.  POF needs to show ads or links mainly from online paid sites, then send prospective customers there and receive commissions when they acquire a paid membership.
PlentyOfFish had reached operating ceiling where it operates, mainly in Canada, United Kingdom, United States and Ireland, less in Australia, New Zealand, Spain, Italy, Germany and France.

When free users got tired of free sites, they migrate to a paid one.
Purely free online dating sites, ads supported only like OasisActive, AmorenLinea, DatingChile or DatingArgentina, Pachetes, CitasWeb, AlguienAQuiénQuerer  had failed even in the South American Market, where nobody has credits cards or nobody wants to pay for a membership.
Only ads supported sites failed because operating costs are bigger than revenue.
I thought the IAC had planned to buy or destroy PlentyOfFish after a 2 years long negotiations trying to acquire it.  

Revenue of IAC Personals (Match, Chemistry, OKCupid, Meetic, ParPerfeito, MeeticAffinity, SinglesNet, People's Media Communities, DateHookUp and others) is in the range of USD750 million.
Revenue of eHarmony' sites (USA, Canada, Australia, UK and Brazil) is in the range of USD250 million.
Revenue of IAC Personals + Revenue of eHarmony' sites == USD1,000 Million == USD1B
Revenue of PlentyOfFish Media's sites (PlentyOfFish, eVow and several dating sites powered by a white label dating company) is in the range of USD40 million.
USD40million / USD1,000 Million == 4% of market (in revenue).
PlentyOfFish has the traffic but others receive the money.

1 comment:

  1. Just to correct you fernando: is actually a paid premium dating brand in Chile with a memberbase of more than 700.000 Chileans - and the business is profitable(!).