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Paid acquisition channels are expensive Dating products have historically depended on paid acquisition channels to build their customer base, and other subscription products have generally done the same.In order to make the ROI work, you have to calculate your customer acquisition cost (CAC) versus your lifetime value (LTV) and make sure you are making enough money to support both the marketing as well as operations.

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Dating is niche and has a shelf-life All this churn is especially complicated by the fact that the dating market at any given time is pretty niche.In Saa S, you’d try to get a 3X ratio for CAC: LTV but that’s building in some profit for the company – a dating startup might be able to run it closer to the metal to get their initial growth.Here’s a couple scenarios for products that buy their customers: Here’s a visualization of this: When you start to fill in this chart, you can see a couple things: First, you’ll observe that of course the “ideal” case might look like a super low churn business that also generates a ton of revenue from each customer.If your goal is to get a date—or find a mate—are you better off with one type over the other?Both kinds are popular, so you can’t go just by that.Built-in churn Churn sucks, and the better your dating product works, the more your customers will churn*.Every churned customer is a new customer you’ll have to acquire just to get back to even.The landscape of technology is constantly changing, which means so are many aspects of our lives. Before dating sites came along in the mid-1990s, most people were meeting their partners through friends, work, or classified ads in the newspaper.Today, there are millions of people on thousands of dating sites looking for their perfect match, whether that’s for a hookup, date, relationship, or marriage.Similar to buying a car, refinancing your student loans, or moving into a new house, the reality is that being “in the market” as a single person looking to meet others has a limited time window.Another way to say this is the dating has “intent” the same way that shopping might, especially when you are talking about a paid subscription service.