The dating app industry is a pretty popular and lucrative segment in the mobile app industry. Grand View Research reveals that in 2022 the global online dating application market size was valued at $7.9 billion and from 2023 to 2030 it’s expected to grow at 7.6% CAGR.
There are at least 300 million people on dating apps worldwide, with 20 million subscribed for premium features. With scores of people using dating apps, there’s a huge opportunity for businesses and entrepreneurs foraying into this domain to become successful and learn how dating apps make money.
The dating market is highly fragmented with a large number of local as well as global players in the segment. Tinder, Bumble, Match.com, OkCupid, and Badoo are among the most popular dating apps worldwide.
Introduction: How Dating Apps Make Money
Dating apps have revolutionised the way people meet and interact with each other. With the increasing popularity of dating apps among the masses, entrepreneurs and businesses are looking for ways to monetise their offerings in the dating app segment.
In this blog, we will discuss some of the best practices and strategies to monetise your dating mobile app and how dating apps make money.
The freemium model is among the most popular medium to monetise dating apps. In this model, the app is free to download and use, but users would have to pay for additional features and services. This is a preferable means of monetisation for startups. Here you can:
- Increase brand awareness
- Provide valuable information
- Attract and onboard users
- Develop and enhance customer loyalty
Freemium model can be a great way to attract users to your app, expose them to premium features and generate revenue. Once users are hooked to the app, you can then offer them the option to upgrade to premium subscription.
Tinder offers a free version with limited features, while the premium version allows users to access additional features like unlimited swipes, location change, and more.
In-app advertising is another popular manner to monetise dating apps. Dating apps can generate revenue by selling advertising space to businesses. This can be done through banner ads, native ads, or video ads.
Users are target audience for various industries and a dating app is a preferred ad space for companies such as: flower delivery, restaurants, jewellery stores, travel agencies, etc. to promote their products and services.
Ads can be displayed within your app to generate revenue based on the number of clicks or impressions. Many firms can benefit from high ad conversions of dating apps.
However, make sure the ads are relevant and do not disrupt user experience. Users also can be offered the option to pay for an ad-free experience.
Subscription model is also an effective route to monetise dating apps. In this model, users pay a monthly or yearly fee to access premium features and services. Subscription model can be a great way to generate a steady stream of revenue and realise how dating apps make money.
People usually take breaks from dating, hence it’s a pragmatic idea to include both shorter billing cycles and longer ones. This can be incentivised by allowing free trials or displaying “locked” features on free accounts. Now users will be in the know regarding the options available in the premium version.
In the subscription model users pay a monthly or annual fee to access premium features, such as unlimited swipes, the ability to see who has liked them, and more. This is a tried and tested way how dating apps make money.
This option allows users to purchase virtual goods, such as flowers, gifts, or boosts, which can help improve their chances of finding a match. Some apps also allow in-app purchases for features, like super-likes and profile boosts.
A profile boost gets your profile higher views for a set period, (an hour or 12 hours). Now users have the option to provide higher visibility for their profile for longer periods.
Bumble offers a premium subscription that allows users to access features like unlimited swipes, access to advanced filters, and more.
Premium memberships is the most common and popular method of monetisation where users can avail premium features as in:
- Extended timeline to respond
- “Boost” your profile
- Get add-ons like super likes, gifts, etc.
- See who liked you
- Ability to fine-tune the filters
- Allow “incognito” mode for privacy
- Read receipts
- Undo sent messages
- Ephemeral messages and photos
- More profiles in the feed
Users should feel they are getting good value for their money when they upgrade to a premium subscription. Make sure your premium features are useful and that it will help users find a match.
Dating apps can also sell data about their users to businesses. This data can be used for a variety of purposes, such as targeted advertising or conducting market research.
Protect Users’ Data
If you are selling data about your users, make sure you do it in a way that is ethical and transparent. Users should be aware that their data is being collected and used, and they should have the option to opt out.
Virtual currency is another innovative way how dating apps make money. In this model, users can purchase virtual currency that can be used to unlock additional features and services.
For example, users can purchase virtual coins to send virtual gifts to other users or access premium features. Virtual currency can be a great way to generate revenue without relying on traditional payment models.
Conclusion: How Dating Apps Make Money
In conclusion, there are several ways to monetise a dating mobile app. The freemium model, in-app advertising, subscription model, and virtual currency are some of the most popular ways to generate revenue.
However, it is important to ensure that the monetisation strategy does not compromise user experience. By implementing these best practices and strategies, you can successfully monetise your dating mobile app and generate a steady stream of revenue.
Entrepreneurs looking to dive into the world of online dating and establish a successful platform, look no further than our cutting-edge Dating Software – Datum.
Our Dating Software is well-designed to empower entrepreneurs to launch a powerful and feature-rich online dating platform with ease. Whether you’re aiming to target a specific niche or cater to a broader audience, our solution offers unparalleled flexibility and customisation that suits your unique vision and business requirements.
After an Engineering degree and a Diploma in Management I devoted 16+ years working in the automotive industry. My innate skill and extreme passion in writing, encouraged me to adopt it up as a profession. I have been writing for more than 10+ years in the software industry. The 400+ blogs I published are informative, exhaustive and interesting to a professional and causal reader.