When we realize how many lonely or unhappily married people in the world, some young and ambitious entrepreneurs start thinking about dating business. At first, it seems useful for society because your aim is to help people. At second, looking at the numbers of users on a dating site (let’s take this, for example, https://planetofbrides.com/list-user/), we can count up a solid income in the nearest future. However, you can’t underestimate the drawbacks and obstacles that may ruin your startup without taking wise actions and investing huge sums into safety, PR, and IT. So, which difficulties are waiting for every dating business starter?
For today, the online dating market is too oversaturated, no matter if we talk about mobile apps or long-living sites. Moreover, a huge part of internet dating and meetings is taken by Facebook and some other social networks. This is the primary risk for the beginners. You have to realize that you’re stepping into a very competitive field full of experienced rivals. Which unique offer would you like to invent? What are your main differences? This is the age when you have to attract and impress users with something unusual. Maybe, if you are not inventive enough for this industry, it is better to choose something else?
Unfortunately… This is, probably, the most tragic aspect of the business. Each year, thousands of men and women pretend someone they are not to suck out money. Each year, more desperate and lonely souls get tricked by cold and hard-headed frauds. There are some good tips and solutions for face control to get rid of the problem, but it requires much time and money. Are you ready to provide a financial safety to your users? Otherwise, you have no rights to step into this business.
Scammers are not a single problem that threatens your reputation. Just take into account that almost 40% of dating sites’ frequent users are already married or are in committed relationships. This fact does not add any points of karma to online dating sites owners’. Do you want to be blamed for someone’s marriage or engagement is done? Add scammers to this and you will get an unbearable headache that never stops.
Huge Time and Money Abyss Before Payback
New customers make the most profit for a new business. It is an obvious truth. In addition, they remain the most loyal customers that will bring you more profit in the future. For this kind of startup, there is a huge time gap between the establishment of the site (or the app) and the period of payback. Moreover, you will need many, many, MANY USERS for remuneration. Learn deeply the history of Facebook and take into account how much money and time did they spend before the cash flows to their pockets.
Apprehensions of investors
Summing all up, these risks are not really attractive for investors. The sites with a potentially contentious reputation can barely become an interest of moneybags. Finally, you can’t provide a fast and reliable payback. Professional investors avoid this business. Again, your unique offer and distinguishing features are the key factors of success. Work on it!