Tinder is without a doubt the hottest thing that has ever happened to dating since the internet. Released in September 2012, it has accomplished the sort of explosive success that can just happen in this digital era. 50 million users, 4.1 million paying subscribers and over $800M revenue in a single year; all these stats are enough to explain why Tinder is currently one of the fastest developing mobile applications and social startups of all the time.
However, the million dollar question is how this revolutionary mobile app works and brings huge money to the table while working on a simple business model. Just swipe, get matched, flirt and date. That’s all. Let’s see how this simple yet effective dating app model works.
Tinder Stats and Subscriber Growth
Founders: Sean Rad and Justin Mateen
Tinder Current Users: 57 million
Company valuation: $3.1 billion
Matches Made On Tinder: 20 Billion
Used in 190 countries in 40 languages
How Does Tinder Work?
Tinder is a location-based social search mobile application that encourages communication between commonly interested users, enabling matched users to chat. Its business model gained fame among users not just as a free application under the Tinder Basic Model but also for the paid membership under the Tinder plus and Tinder Gold Models.
Before discussing these models, let’s first put some spotlight on how Tinder works:
Users make a tinder profile by signing in through Facebook or via mobile number. Tinder imports all the essential data (Profile pic, interests, work or school) from FB.
Using an algorithm, Tinder discovers potential matches for users based on their present location. The application additionally uses the information imported from FB along with the location to be exact in finding a match.
The application then shows the pictures and short bio of the matches to the user just with the first name.
The user is requested to swipe right to like and left to dislike the recommended profile and proceed with the search. Swipe is vital to Tinder’s design and the application is a leader in utilizing this feature.
Users get matched if both of them have liked one another. A match is essential to start a chat. That’s all. If you find a match, go for chat and then date.
How Does Tinder Make Money?
Tinder was released as a completely free application in 2013. In 2015, the application changed its working model as a freemium business model and began charging for few features. These features are the part of Tinder plus which divided the operations into two sections; the network making Tinder and the money making Tinder plus.
Then in 2017, the application propelled Tinder Gold which incorporated an extra special feature. Here are the sources using which the app makes money:
Tinder Plus and Tinder Gold
Tinder Plus and Tinder Gold are in-application memberships offering access to premium features, for example, Unlimited likes, Passport to chat with singles anywhere around the globe, Rewind to take back the incidental swipe, one Boost a month and extra Super Likes to emerge from the crowd.
With Tinder Gold, the users also get exclusive access to Likes You feature, which gives them a chance to see who likes them before they swipe. Users can consider it their own Swipe Right attendant – accessible all day – bringing all of their pending matches to them!
It ended up being hot new money making feature for Tinder. Capitalizing by individuals’ inherent desire to know results promptly, Tinder Gold boosted sales 19% with game-changing features that enhanced the whole application experience.
Advertisements and Sponsored Profiles
Various corporates have begun partnering with Tinder to show their sponsored content as profiles. Tinder, much the same as SnapChat, has insightfully covered the sponsored ads/content to its standard interface to make it look less intruding.
Whenever a user swipe right for a sponsored profile, he gets matched and gets a pre-drafted message from the support with whom he can either talk or connect by tapping on the link. Chatbots are normally utilized for this purpose.
Boost: Boost is a premium feature that users can buy in tinder app. It makes the user’s profile the top profile in the area for 30 minutes. This Increases the chances of a match for up to 10x more profile views and 3x more matches.
Super Likes: With this feature, Tinder allows users to indicate if they extremely like any individual. Users just get a couple of these before they run out, and after that, they will have to wait to get more or they can buy the same.
Key Takeaways from Tinder Business Model for Dating Startups
1. Never Hurt Your Users
Tinder made their idea on positive psychology. Users can swipe right to anybody but they can never know whether they have been rejected. This prevents negative psychology and the feeling of rejection that nobody needs and gives an extraordinary user experience.
2. Truly Understand User Demands
Tinder nailed dating with just one application. Modern daters are too busy and too lazy. They need ease of use and convenience in everything; from streaming the latest episode to hailing a taxi. Tinder did this by making an application that required one gesture. No clicking, buttons or typing, only a simple swipe left or swipe right.
3. Removal of Friction Is Necessary
We all know how irritating it is to walk and type on a keyword, however, Tinder made something that required no efforts – only a simple swipe and you are all done. UX and application designer can learn a lot from this and see how removing friction can equal incredible user experience.
4. Organic Growth Is Crucial
Word of mouth! Tinder perfected viral sharing and word of mouth with their targeting of college campuses. As opposed to spending money into paid promotion and advertising, Tinder concentrated on getting organic traction with users who had an extraordinary experience utilizing the application.
The market of Online Dating Apps is one of the most competitive and is also one of the oldest. Tinder’s success is because of their amazing branding, responsiveness and flexibility to their audience. The brand will surely continue making growth and others should learn from it to be successful in the coming future. Do you want to own the next big thing like Tinder? Get a free consultation here.
Humane yet subtle, Naiya is a girl full of ideas about almost everything. After earning a bachelor’s degree in computer science and engineering, she decided to merge her technical knowledge with her passion for writing – to accomplish something interesting with the fusion. Her write-ups are usually based on technology, mobile apps, and mobile development platforms to help people utilize the mobile world in an efficient way. Besides writing, you can find her making dance videos on Bollywood songs in a corner. To know more, connect her on LinkedIn.