Web 3.0 formula discussion (4C, P, VS)
Here, we will take a look at the Web 3.0 aspects of online dating sites.
As we mentioned earlier, Context for dating sites is becoming increasingly more focused and nichy, as sites look for different avenues to differentiate. Some popular contexts that are emerging are Seniors, Gay, Single Parents, etc. >>>
By Frank Lara, Guest Author
The quick answer – they are worth your attention.
Electronic Arts is the big daddy of the gaming sector with a $16.9 billion market cap, they are the world’s biggest video game publisher. This month ERTS posted a smaller-than-expected quarterly loss due to a boost from hits such as its latest “Harry Potter” title. >>>
It won’t be too far fetched to say that today, Nokia is the Microsoft of the mobile devices industry. This Finnish giant is the one company that Apple would definitely need to bite at if it wants to create its place in the mobile devices market.
On the other hand, Nokia has proven to be resilient and the experience of 2004 when it lost ground to Motorola’s Razr will help it address the iPhone challenge better. It’ll be interesting to see how Nokia reacts to the anticipated paradigm shift in the mobile devices market, post the launch of the iPhone. Here is my prior analysis of Nokia wrt the convergence device movement.
Finland based Nokia Corp(NYSE: NOK) is the world’s largest manufacturer of mobile devices. In Q2 2007, the company shipped over 100 million units worldwide accounting for 37% of total units shipped. Nokia’s dominance in the market can be judged by the fact that it was a shade under about 3 times clear of the nearest rival Samsung, which shipped 37.3 million units in Q2 2007. >>>
SM: What are your pricing guidelines now? SS: We actually don’t share that publicly, but it is not too different than payroll processing costs. The core point is if you look at the paper model, and you go to companies and ask them how much it costs to process an expense report via paper, it is about $45 – $50 per transaction.
SM: When you say that, is it because people have to manually write it down, and place it into the computer, is that what you are quantifying? SS: No, in fact our buyer is the CFO or controller of a company. They do not look at soft-dollar savings, so your time and my time are not factored in. What they do look at is how many people in the accounting department who receive your paper expenses, enter them into the general ledger system. What does it cost to do paper-based checks? How much do you save in supplier contracts? What benefits can you get in reducing the transaction processing costs? We can take that from $45 – $50 down to well south of $10. >>>
Most of the online dating sites earn money mainly from subscription, ad revenue and products and services sold through its sites.
The subscription rates for the dating sites vary from $29.99 per month for Match.com to $39.95 per month for Yahoo! Personals to $49.99 for True.com to $59.95 per month for eHarmony.com. eHarmony claims to have some incredible insights into psychological profiles of its members, and advertises “chemistry” match through its rather clever television ads.
Match.com generated revenues of $311 million in 2006 with a growth of 25% over 2005. eHarmony is expected to earn $200 million in revenues in 2007. Though revenues of these sites have been growing they are still not making profits due to rising marketing costs. >>>
SM: What are some of your key learnings from this journey so far?
JW: At my first startup we cut off our consulting business to focus on raising venture capital that never materialized. Cash is king. Build the business that makes you money and keeps the doors open; it can finance your riskier investments.
During the early days at Shockwave.com I learned the perils of hyper-quick growth. Don’t hire faster than you can grow your management capabilities and revenues, and don’t spend all of your money unless you are certain that you are investing in things that will give the expected return.
Honest communication is of the utmost importance, in life and in business. Alissa and I were very different people. None of our friends thought we made a good couple early on, but we communicated very well so we converged. >>>
Starting with this post on RIM, I will look at some major players that the iPhone will be competing with. An earlier post on RIM can provide good background for this post. In it, I have suggested that RIM does not directly compete with the iPhone, because of its prosumer focus, whereas the iPhone is a consumer media phone.
RIM(Nasdaq: RIMM) is a leading designer and manufacturer in mobile communications industry with revenue of $3.04 billion and 6,250 employees in fiscal 2007. RIM is the king of the converged mobile devices market for the enterprise or prosumers with over 9 million subscriber accounts. As per IDC, RIM is second behind Nokia in the converged mobile devices market for Q4 2006. >>>
Top Players and Rankings
Online dating, personals and matchmaking sites have been riding a boom for the past five years. According to the latest Hitwise data True.com is the most popular dating site in the US with 11% market share followed by Singlesnet.com (9.93%), Yahoo! Personals (9.13%) and Match.com (8.22%). True, founded in 2003, has 16 million members and an estimated 3.8 million unique visitors per month. The site is among the top 100 most-visited sites in the US.
According to Hitwise 50.8% of the visitors to the dating sites are male. Among the male users the popular sites are ManHunt.net, Adam4Adam, Gay.com Personals, etc. Among the female users, eHarmony, Love Access, Don’t Date Him Girl! and LocalHookUpz are very popular. >>>