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gassi 7 days ago

I think the author missed an important factor: misaligned incentives.

Dating apps make money when users spend time (and money) on the platform. Users who find a partner tend to leave the platform, so dating companies are incentivized to prevent that from happening. Those companies then have more opportunities to up-sell those users on premium features, which they're more likely to purchase due to repeated failure and/or feelings of inadequacy.

10000truths 5 days ago | parent | next [-]

This is often parroted, but the reasoning is flawed. The vast majority of the platform's growth will come from new users, who are entering the dating scene. If they fail to capture that audience (say, by having a reputation of not performing as advertised), then no amount of upsells or string-alongs of existing users will sustain them, as their user base will only ever decrease, and investors will see that and withdraw accordingly.

onlyrealcuzzo 5 days ago | parent | next [-]

Everything about this is wrong.

1) The platforms aren't growing that impressively. Most of their users have been on the platform for a while, were previous users, etc.

2) It doesn't matter how good the app is, you need a network effect. New users are going to go to where the potential dates are.

3) Marketing does wonders. An app can suck and have great marketing. It will get users over an app that actually works and doesn't have good marketing.

4) Lots of people on dating apps are looking for dates (hookups), not partners. If the apps can keep you getting dates, not partners, they can keep you on the app and happy.

adaml_623 5 days ago | parent [-]

"If the apps can keep you getting dates, not partners, they can keep you on the app and happy."

I know this sounds judgemental but I'm not convinced the people going on lots of dates are "Happy" even if they're being successful in dating and hookups.

yousif_123123 4 days ago | parent [-]

Happy in terms of being a customer of the app perhaps.

TheOtherHobbes 5 days ago | parent | prev | next [-]

Match's growth peaked a long time ago. The site is now trying to grow by "offering new products" and "cutting operational costs."

The relative newcomers - Bumble and Hinge - grew by trying to offer a better experience, especially for women, who are traditionally overwhelmed with unreciprocated interest on conventional apps. Both seem to have admitted defeat now and moved to the usual model.

In terms of revenue, the incentive to keep millions of users spending is far higher than the nominal gains from persuading friends of a successful couple to join up. Given that most users aren't successful, that network effect is tiny.

There's an opposing network effect of *keeping customers unmatched, because this provides gossip and entertainment among friends, which gives them a reason to continue using a service.

We know that string-alongs are a real thing on dating sites - especially, but not exclusively, for men.

There's also a small but not negligible subculture of (mostly) women who use dates for free meals and get a good return on their monthly subscription.

And a lot of sites - not just Tinder - overlap hook-up culture with people seeking marriage and kids. If anything the former is a more popular option now.

trashface 4 days ago | parent | next [-]

FWIW, Hinge has been owned by match for some years now. Bumble is still independent by their stock is down ~92% over 5 years. I think they will eventually be bought out by match.

ta12653421 4 days ago | parent | prev [-]

Wrong claim: "There's an opposing network effect of *keeping customers unmatched, because this provides gossip and entertainment among friends, which gives them a reason to continue using a service."

No, this is implying they are doing it with intention - which they dont even have to insist on! They can keep the users, because matching based on an app does not work for 99.99% real cases. So if you treat them well, they will stay anyway, unless your product is shitty.

Etheryte 5 days ago | parent | prev | next [-]

I don't think this counterargument holds. It's a hell of a lot easier to get a customer who already paid once to pay a second time than it is to get a customer to pay for the first time. Also, I think most people are well aware that by and large, dating apps have a very low success rate for the majority of their users. People use them anyway.

ta12653421 4 days ago | parent [-]

Since your marginal costs per customer are veeeery low, you can hammer thm with 50-60% discount, which ends up on most platforms at 10 - 20 bucks per month, and if you make 3 - 4 dinners, you get much more out of it than an evening in the cinema

parpfish 5 days ago | parent | prev | next [-]

And to add to that- seeing a real world friend go on dates or start a relationship because of an app is better than any marketing you could ever buy.

If you want to drive top-of-the-funnel growth, make the product good even it causes some folks to drop out once they’re in a relationship.

CuriouslyC 5 days ago | parent [-]

They don't need that. What option do most young people have?

Most young men can't approach women, most young women can't handle being approached and we don't have shared spaces where people can get to know each other and pair off anymore. Young people think the apps are dumpster fires, they hate them, but the alternative is sadly worse.

djoldman 5 days ago | parent | prev [-]

> The vast majority of the platform's growth will come from new users...

Userbase expansion is new users less leaving users for a time period. So there are two factors, not just "new users."

In any case, Match Group apps are well into the phase of focusing on extracting the most money possible from their paying users as opposed to gaining new users.

After all, infinite users are useless to a company, even if it costs nothing to support them, if none of them pay.

ta12653421 4 days ago | parent | prev | next [-]

By far absolutely _not_ true:

- i have worked in the space for some years for two of the biggest platforms in my country

- dating sites track a lot KPI and discuss them and test them thoroughly

- the KPI "do-more-users-leave-our-platform-earlier-if-our-matching-algo-is-just-too-good" - I promise: In alle the years, this question WAS NEVER - NEVER!!!!!!! - raised, regardless wich Manager or which Exec. This metric isnt even debated.

And here comes why: the most important thing to form a relationship are "technicals" which can NEVER be introduced into an app. There may be some advances in genomic matching, but no body deployed this so far and it wont happen unless Apple watch as a gene encoding module.

There are one night stands, there some marriges (we had a "winners board" in our office), but 99% of all cases when people met, its going to be "failure" (in a sense "no match")

Regardless how good your algo is - it doesnt matter when it comes to a reality check.

Therefore, Dating apps have absolutely no fear of you signing off because you fond someome - its very likely that you will come back soon, second: From operators perspective it would be a good thing if people would tell "i found my match on XYZ", but sine this does happen only super rarely, there are only few such stories.

So - NO: Dating sites do fear someone deleting the account.

(except: you are a startup and have to keep every profile to gain some size)

voidmain 4 days ago | parent | next [-]

The good dating apps just naturally made less money than the horribly destructive ones and got bought out and converted into destructive ones.

svv 4 days ago | parent | prev | next [-]

> - the KPI "do-more-users-leave-our-platform-earlier-if-our-matching-algo-is-just-too-good" - I promise: In alle the years, this question WAS NEVER - NEVER!!!!!!! - raised, regardless wich Manager or which Exec. This metric isnt even debated.

What labels do they use for training their algos though? What is their definition of a successful match, is it a date, a recurring date, or something closer to a long-term relationship?

If matches predominantly result in "failure" they might just not have enough "long-term success" labels to go by, and their proxy labels will be biased towards short-term successes.

ta12653421 4 days ago | parent [-]

Wrong approach; at least until latest, NONE of the standard apps does apply any kind of "real AI" stuff, maybe this changed through the last 3 - 4 years.

All thi matching stuff like "match with X%" is just bullshit.

The only platform having a useful approach here was OKC years ago. (but even for their scoring you would not need any type of sophisticated tech)

xg15 4 days ago | parent | prev | next [-]

Well, what kind of KPI do you track then?

ta12653421 3 days ago | parent [-]

- new user sign up - new subscriptions - enlengthened subscriptions - mails send - overall interactions - testing of new marketing campaigns/channels (they do massive MVT, even fontsize&coloring)

just to make that clear: churn is tracked/written down for sure, but its not debated in a context of "is churn growing if more people are matching successful" - because in 99.9% of all cases people do not meet successful, so this metric is irrelevant

thomastjeffery 4 days ago | parent | prev [-]

And yet, the premium features are overtly aligned against user success!

I believe you that these app devs think they are optimizing for user success, but that doesn't change the incentives that frame their work.

The greatest utility of a dating app should be that it provides a higher number of opportunities. This feature is explicitly broken by the most popular dating apps. Often, it is put behind a paywall, which has the same effect as being broken.

kelnos 4 days ago | parent | next [-]

> The greatest utility of a dating app should be that it provides a higher number of opportunities.

I'm not sure I agree with that. Limiting opportunities can actually be a better experience. Too many choices can lead to decision paralysis.

ta12653421 4 days ago | parent | prev [-]

> higher number of opportunities. <

Limitting search/result is often used to tease users into the subscription. Eg. Tiner allows in free mode only a certain number of swipes. Is it this what you mean? This is usually depends on: Search + text for free but limited, or "pay for everything" I do not see why putting some features behind a paywall is "against users interest" and how this limits/increases his/her chances?

You are claiming that dating sites should be free - this doesnt work usually (POF as exception) - and making users pay for those does not increase his/her chances: EVERYTHING that happens before you met someone will be crashed usually in the very first second you met (and smell!) someone.

So if you have a chance with another person, is something that is completely(!) out of control of the website operator. EDIT: this is something website operators do know, they cant change it and this is something that they should put on their website - they are selling dreams and expectations, which wont become true in real.

cbondurant 5 days ago | parent | prev | next [-]

This is exactly why I always make it a point to discourage my friends from using dating apps.

A dating app that is effective at solving the problem it is ostensibly designed to solve will never make money as people will be matched quickly and will have no need to pay for the service. So clearly no profitable dating app is good at matching people.

I'm of the opinion that using a tool that is constantly setting you up for romantic failure and rejection in the name of keeping you on its platform is a really good way to wreck your mental health.

zelphirkalt 5 days ago | parent [-]

On the other hand, if it was so easy to find a match, then we wouldn't be trying to use dating apps. I think it is just generally hard to find a good match for many people these days.

nradov 5 days ago | parent [-]

The other side of that is that many people are simply terrible and really unsuitable for being in any sort of long term stable relationship. No dating app can solve that problem (unless maybe they incorporate mental health and life coaching services, which seems kind of sketchy as a combination). Whether the situation has gotten generally harder these days is impossible to say but I certainly don't envy those still in the dating pool.

e2e4 5 days ago | parent | prev | next [-]

Facebook dating has different incentives.

https://www.facebook.com/dating

phkahler 5 days ago | parent | next [-]

IMHO they should be the best one and use that to draw people to FB. They don't need to keep people in the dating app since its not the primary business.

jeffbee 5 days ago | parent | prev [-]

The only thing I can dream up less appealing than that would be dating on Nextdoor.

TimTheTinker 5 days ago | parent | prev | next [-]

Bingo. This is the effect that keeps (a) incumbent platforms in place, (b) users on those platforms, (c) and potentially new platforms from coming online and offering a "superior" experience.

NoahZuniga 5 days ago | parent | prev | next [-]

This is pretty obviously addressed in the article. The premise of the article is why don't users migrate to better platforms when the large ones are extracting as much money as possible (because the incentives are misaligned)

KolibriFly 5 days ago | parent | prev | next [-]

I'm not sure it's purely malicious. It might just be the result of optimizing for engagement metrics

brudgers 5 days ago | parent | prev | next [-]

Users who find a partner

Tinder is not Match is not Grind. People partner for various reasons and durations.

feoren 5 days ago | parent | prev [-]

[flagged]

tomhow 4 days ago | parent | next [-]

Please don't use HN for ideological battle like this. https://news.ycombinator.com/newsguidelines.html

feoren 3 days ago | parent [-]

Anyone can decide a statement is "ideological" just by disagreeing with it. The statement "the government can and should provide services to its people if those services are important to its future and the free market is incapable of providing them" should not, and did not used to be, ideological. The fact that such a statement is far outside of the current Overton Window is the result of a decades-long propaganda campaign to destroy everyone's faith in government so it can be looted, and everyone who parrots "government bad" is (knowingly or not) playing a part in this propaganda campaign. I assume the issue you have with my comment is that I knew 95% of readers would immediately regurgitate "but government bad!", but of course I was right that that happened.

When the Overton Window shifts to the point where saying "people should be decent to one another" becomes a radical ideological statement, make sure you flag every comment that says that too. We can't have radical ideologues on HN, after all.

tomhow 3 days ago | parent [-]

The question of what goods and services should/shouldn't be provided by government is about as ideological as any question there is, given that the size/role of government has been one of the most central matters of most major ideologies for at least the past couple of centuries.

It's fine to discuss ideology on HN, but it needs to be done so in a spirit of curiosity and exploration, not battle and belligerence.

We've had to ask you to respect the site and observe the guidelines a few times before in the past couple of years. The HN guidelines and HN's intended purpose are the issue here, and sermonizing about ideology seems a deflection.

We just need you to observe the guidelines, no matter what point you're trying to make (and we really don't much care what point you're trying to make). Indeed this is in your interests to do this, because your point will carry more weight if you make it whilst keeping your discussion style within the site's guidelines and norms.

linguae 5 days ago | parent | prev | next [-]

I’m sure there are many people who don’t want their dating lives influenced by whatever rulers are in charge of their governments. Democrats won’t like a MAGA dating service, and vice versa.

tbossanova 5 days ago | parent [-]

What about a nonprofit instead?

sqrt_1 5 days ago | parent | prev | next [-]

I think Japan did this last year https://japandaily.jp/japans-government-initiatives-to-boost...

DaSHacka 5 days ago | parent | prev | next [-]

> This is exactly why a dating app should be developed and provided by the government. Side note: If this gives you the heebie jeebies, you are part of the problem.

Bravo, I haven't laughed this much in a while. God-tier satire.

5 days ago | parent | prev [-]
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