PlentyOfFish Starts Charging Premium Membership Fees

by David Evans on March 5, 2009 in Dating Industry Finance

Picture 1.jpgFree dating sites have had a good run the past few years. Everyone starting a free dating site jumped, and continues to jump, on the free dating bandwagon. Meanwhile, top paid dating sites are making hundreds of millions of dollars, while free dating site are scraping to get by. According to various reports, the current online ad market has undercut revenues significantly. What’s a free dating site to do?

If you’re PlentyofFish, you start charging for premium memberships. Markus, founder of PlentyofFish, just wrote me to say PlentyofFish charges for premium services. Before your head explodes, realize that existing site features will remain free.

In the next serval days I’ll be releasing a paid feature on plentyoffish. With this optional upgrade you can signal to the community that you are serious about meeting someone. This upgrade will last either 3, 6 or 12 months.

1. On paid dating sites most buys are impulse and in the signup process. Paid sites monetize on Impulse, plentyoffish is going to monetize on user intent. I believe we will have far more members that are serious than paid sites. Its one thing to be tricked into paying (paid sites), its another to go out of your way and pay for something.

2. There will be no addtional features and funcationality for users, this upgrade will be strictly to signal intent to the community.

3. There will be no changes to existing users or new users. The site will continue to work as it always has, except some members can now choose to stand out more.

I’ve always told free dating sites that they need to diversify their revenue by offering a paid level of service, or some other revenue stream. And here we have it, the largest free dating site in the world is now going to be charging for “Serious Member Profile Upgrades.”

Granted, Markus has been fairly transparent about his desire to further monetize his members, going as far as to mention the thought of turning PlentyofFish into a social network (where is that link, his blog search stinks). He had to start charging, especially in this ad market.

But just what is a serious member? Turns out it’s someone who has a Serious Member star on their PlentyOfFish profile. Now we get to see just how serious the singles are on PlentyofFish. Leave a comment with you guess as to what percentage of users actually end up paying for the shiny badge.

PlentyofFish can be described as mid-market casual. These are people who for the most part refuse to pay for for online dating. Either they don’t have the money, are cheap, or are ignoring the idea that using a subscription fee as a filter is as close to narrowing down your search to serious daters as you’re going to find. Casual daters simply don’t like to pay for the privilege of meeting other casual daters.

Interesting that until now Markus has always said that being free kept him from various lawsuits, most of which are part and parcel of running a dating sites. That’s why he didn’t go for paid virtual goods or background checks and identity verification.

PlentyofFish is not known for it’s nuanced marketing. I bet the upsell process will be “Pay $20 and date better people” or something simple like that. And you know what? It will probably work, although to what extent nobody, including Markus, knows.

It will be interesting to see how the payment process is integrated into the site and what vendor got the deal.

All the hype and hyperbole about free dating sites killing off paid dating rings just as hollow now as it did in 2006. Nobody talks about the four dimensions, free, paid, casual and serious. When you plot dating sites on this grid, you start to see where the money is, and where it’s going. Pure free is going away, just watch. The model I’ve been pushing for years is a blend of VIP services, ads and whatever else is hot in terms of bolt-on services and pay-to-play functionality. And we haven’t even begun to talk about the casual dating apps on Facebook, which are free for the most part and absolutely dwarf the majority of free dating sites.

Free dating sites need to consider adding paid VIP levels of service, or other paid features, *in addition to* the 10′s of millions of pageviews necessary to run a successful ad-supported site. Contact me if you want to learn how I can help you get there.

Please Digg, share, social bookmark, favorite on Facebook, etc. Interested to see how viral the story gets before the mainstream media gets ahold of it.

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    { 74 comments… read them below or add one }

    Tom March 5, 2009 at 1:26 pm

    I just saw this as well on Markus’s Blog.

    On the part you mention about virtual goods. Markus did do this briefly a few months ago and then stopped because not many people were interested.

    http://www.datingsitesreviews.com/article.php?story=Plenty-Of-Fish-Drops-Paid-Virtual-Gifts

    IMO he was charging way t0o much.

    As you did in your graphic above I guess he will have to change his slogan. The basic membership is free but the new star, search highlighting features and ad removals are not.

    Tom

    Reply

    Kyle O'Connor March 5, 2009 at 1:27 pm

    Wow, pretty big news. I would have thought that with that level of traffic combined with $20-30 affiliate commissions for sending customers to other dating sites he’d have a pretty amazing business model.

    Of course he does, but I can see why he’d want to diversify that income stream while keeping more of those customers on his site.

    Reply

    Markus March 5, 2009 at 1:30 pm

    Canadian currency has fallen 30% in the last few months and the site has grown nearly 40%…

    This is more of a response to all the big paid sites that are launching free sites. To effectively compete against the major paid sites we have to have the same or better value proposition in the eyes of the consumer.

    Reply

    David Evans March 5, 2009 at 1:34 pm

    Interesting how POF grew, paid dating sites started to react, now POF is reacting back. Interesting echo chamber effect with a crappy economy to boot. 40% growth is very impressive, even Compete agrees.

    Reply

    Bob March 5, 2009 at 2:14 pm

    Interesting turn of events. If you have the traffic, you might as well monetize it properly. I think this is a good move and hopefully opens the door into other areas where POF could optimize their revenue.

    Reply

    JD March 5, 2009 at 3:52 pm

    As mentioned on plentyoffish.com blog:
    Good luck but:
    At the expense of being rude, and that is not my intent, this will follow your paid gifts into the sunset.

    Sorry can’t see POF members spending money to stand out…
    they are on match.com and lava for that already(?)

    Reply

    Dave Evans March 5, 2009 at 4:14 pm

    I think Markus could do very well, it’s all in how he chooses to position the offer. An icon is worth something, but vetting process or some added functionality to make people feel like they are in the VIP room instead of sweating it out on the dance floor is what he needs to do to succeed. We’ll see what the new badge and system looks like, until then its only conjecture.

    Markus tends to throw things up to see what will stick without giving it as much thought as one would expect. I think that’s the difference between success and stardom. Works for him though, right?

    Reply

    CasualEncountersBlog March 5, 2009 at 5:11 pm

    All of the local dating sites here have a free/paid hybrid model, where the paid listings enable you to stand out more, appear first in results, impart some additional site functionality, etcetera. They’re all very successful. Like I said over on his blog, I just don’t understand why he hasn’t done it sooner – what kind of lawsuits does he think he’s avoiding by not having any paid options?

    Reply

    Dave Evans March 5, 2009 at 5:18 pm

    Define “all very successful”.

    Reply

    CasualEncountersBlog March 5, 2009 at 5:19 pm

    They’ve been around for years and post annual profits.

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    Fred Garvin March 5, 2009 at 7:15 pm

    I’m not sure what stops the non-serious daters from buying the badge saying they are serious, thus giving no value to the badge. Guys have been meeting women for centuries saying they are really interested in an LTR only to chew off their own arm the next morning.

    Reply

    Markus March 6, 2009 at 3:10 am

    “PlentyofFish charges for premium services”

    Plentyoffish isn’t charging for premium services, or any kind of services. Its a static profile upgrade…

    Reply

    Kathryn Lord March 6, 2009 at 8:43 am

    I actually think this is a wonderful idea — charging for intent and then labeling the user’s profile in a way that allows others to see that they are indeed self-defining as serious, and then paying for it. Yahoo! Personals did it with Premier, which I think is still in operation (http://personals.yahoo.com/premierinfo), and I plugged regularly with clients until it seemed of little worth, because Yahoo! wasn’t doing much with it.

    Every single one of my clients has not understood the high ratio of unpaid/paid members on sites like Match and Yahoo which is the main contributor to low responses to first emails. Where Plentyoffish has not had that problem, since all members are on for free and therefore can mail or not, still, this new service will allow those folks who ARE serious to self-identify as such and allow others to find them. I have never suggested that my clients use Plentyoffish, but if this idea takes off, I might. I’d like to see all sites offer this type of feature. It would really help those who are seriously looking themselves and are frustrated by not being able to identify others with the same level of seriousness.

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    John McGrew March 6, 2009 at 11:55 am

    Within your blog your stating that the Free Dating Site is going by the wayside. I’m finding exactly the opposite to be true. In fact, I see a new path that even Mr. Frind did not go down opening up as the Free Dating Sites find a new and more profitable way to attract their members and retain them. As all the owners are scrambling right now to find ways to overcome the advertising revenue spiral that has forced POF into attempting to charge for pictures of flowers, contracting with Imeem & now the serious vs. not-serious member profiles, there is another route.

    A test is actually underway with the new site MyDatery.Com, to disprove the myth free can not only work, but giving the members more is simply the way to go. By contracting with specific sponsors we’re able to actually reward the members with things that they want such as vacations, gas & groceries. By offering every option that is currently available online, taking POF’s e-mail filtering system further than POF has taken it (this is a trade secret that I can’t reveal, I’m sorry guys) and rewarding the members with tangible items that are available nowhere else, we just might be able to change the current trend of everyone trying to charge their members for the service.

    In the end, I can not tell you which way is going to work best, but one of them will prevail above the others. Will it be OkCupid who is keeping it 100% Free and offers the same things, just a new layout. POF who is going to move towards charging it’s members without offering anything other than a Gold Star and Gold Bolded profiles, Date.CA who is simply holding their ground and growing or MyDatery.Com that is heading off in a completely new direction by offering all the toys of the paid sites, passing up the free ones with options and then rewarding it’s members with tangible goods? Give us time and this will sort itself out. I’m banking on going the opposite direction as Mr. Frind on this one though…

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    David Evans March 6, 2009 at 2:05 pm

    Tying discounts on home goods and vacations with your online dating experience, I’d say the jury is definitely out on that one. John, please turn of the horrendous music on your home page.

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    John McGrew March 6, 2009 at 3:37 pm

    I’m going to take your advice on this one Dave, as you definitely have far more experience in this field than I do. The music is gone. As far as the jury being out, your right on that one and only time will answer the question as to which direction is the right direction for each of these sites. Though it is still on the site available to the members, just not on the homepage any longer and all auto play has been removed.

    Thanks for the input, I was going back and forth on that one.

    Reply

    CasualEncountersBlog March 6, 2009 at 6:15 pm

    The answer: pay the chicks.

    Reply

    John McGrew March 6, 2009 at 7:32 pm

    That is a very good idea Casual… But I’m not sure any of us can afford to pay the ladies to talk to some of the guys that are online. Nice idea though.

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    Ricky March 8, 2009 at 6:31 am

    you know whats funny all the time plentyoffish seemed to put the user first and never to be geedy and called other paid membership sites

    now how much do you want to bet that the free members in time will be limited to what they can do or see

    plentyoffish is a poor user friendly website it looks dated full of google ads but the only thing which is great about the site is its members

    Now your trying to make money out of loyal users trying to make out that if they upgrade they will look serious in return free members will look like spam

    markus stop worring about your back balance and put the users first of they will be another website round the corner who will

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    Tom March 8, 2009 at 8:54 am

    Markus will probably keep the current feature set of what free members can do. What you may see (especially if profile highlighting doesn’t draw as many sales as planned) is additional features for the premium memberships. Things like appearing ahead of other members in search results, etc..

    Markus mentioned that this was in large response to paid sites launching free sites. I would think he would be equally worried about sites like Match.com who are testing the waters by allowing Paid premium members communicating with all members and not just other paid members.

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    Vivek March 8, 2009 at 2:41 pm

    We have launched a dating website, http://www.hintcafe.com, focused on bridging the gap between the online and offline world. We have included features like voice e-message and secure call forwarding where singles can talk to each other without sharing their phone number. Its free to register, search and connect with potential matches. Our matching algorithms are tailored around the user’s interest and learns automatically from user’s behavior on the website. Our powerful matching engine provides interesting hints for the user to consider and find their perfect match.

    Sign up at http://www.hintcafe.com/register

    Reply

    CasualEncountersBlog March 8, 2009 at 4:21 pm

    @John

    Yeah, I saw a few guys discussing it elsewhere. They were envisaging female site members being paid in terms of volume of messages sent to male site members, etc. Like not salary-type money, more of a small financial incentive to encourage contribution to and interaction with the site.

    All kinds of obvious problems come to mind in terms of the details of such an implementation, but it’s food for thought.

    Failing that, go gay niche if you can stomach it. Growth is great and you’re never going to have the “uh, where are the hot chicks?” issue you have with hetero dating sites.

    0.02.

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    Who Needs Cupid March 8, 2009 at 8:23 pm

    I’m one of those “on the bandwagon”. I recently opened a new and completely free online dating service called Who Needs Cupid. Of course, being so new, I have a long way to go building up my member base. I don’t think it will ever get quite as popular as POF but I definitely think FREE is the way to go. Google started it all with their free services and it seems as though the sites doing best these days are the ones providing a free service.

    Anywho, just my two cents.

    Reply

    Ross Williams - WhiteLabelDating.com March 9, 2009 at 2:54 am

    I go away for a few days holiday and come back to hear this :)

    This will be really interesting to monitor – PoF’s only redeeming feature was that it was free. The user experience was poor, customer service was non-existent – but it was free, so that was okay.

    I’ve learnt through other projects that the difference between free and paying just one cent is huge – it’s not about what people have to pay, it’s weather they have to pay or not. And a huge number of people will strop about having to pay now.

    I’m surprised that Markus chose this route – which dilutes the unique selling point of PoF – rather than simply setting up his own paid site as well.

    I hear he’s hired 5 customer service reps or something similar – I think he’s woefully underestimated the amount of people required to happily service paying members. Based on how we calculate support staff requirements and his traffic levels, I’d expect him to need 5-10 times that amount of support staff.

    And then of course, he’ll need to worry about office space increasing, HR issues, employment etc.

    This time last year he was small (from a headcount perspective) and I suspect a lot more profitable than he is now or will be in the future.

    He could have started his own paid dating brand (Plenty of Premium Fish) and outsourced the whole thing to a partner – I wish him well on this development but he’s going to be dealing with a lot more headaches now he’s growing.

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    David Evans March 9, 2009 at 8:40 am

    Fred, good point. If anyone can purchase the badge it’s usefulness is limited.
    Tom, I think you are correct about adding features.
    Ross, agree about paying, even one cent, it changes the game considerably. Should he really have set up his own site? That’s a lot of expense, time and resources to burn.
    He’s just doing the badges now, that doesn’t require a lot of customer service reps.
    Don’t know about hiring more people, although I would imagine that happening sooner or later.

    There is no way he would outsource, that makes no sense in his situation. A nice business for you though.

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    Ross Williams - WhiteLabelDating.com March 9, 2009 at 8:53 am

    Hi David – once people have paid for the site, I think they will expect a higher degree of customer service, I really believe it will be a shock to the system.

    Markus has tough skin and will be able to handle the surge of complaints that he’s going to get.

    I disagree with you about outsourcing – financially it makes a lot more sense for a secondary brand (obviously not his main site). We’ve already seen smaller players set up secondary sites with us – it simply makes sense when their only cost is cross-marketing emails and they receive most of the revenues. Using a white label platform pretty much always makes sense financially (particularly as we’re now offering 100% revenue share for US partners) – sometimes though it doesn’t make sense for the ego which is why it takes people time to do it ;)

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    David Evans March 9, 2009 at 9:06 am

    Ross, people are paying for a badge. This doesn’t take a lot of customer service reps. Don’t confuse future changes to free and paid roles on the site. Right now it’s a graphic on a profile, but it is a gateway to more paid services as Tom states and you infer.

    Let’s stick with current reality: WLD satisfies the criteria for a portion of the online dating startups and established sites. As a mostly-free site, POF is a long way off from considering partnering up with a third-party.

    100% revenue share is only one of the criteria prospects evaluate when looking at various platform solutions. There are many other considerations that need to be addressed. Profile ownership and the nuances of a shared database are much larger issues with the people I talk to.

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    Tom March 9, 2009 at 9:07 am

    I’ve just blogged about the upgrade being live now at POF. Prices range from $39 to $70. I wonder if Markus will add the ability to search for just Serious Members? I didn’t see a way to do this.

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    Ross Williams - WhiteLabelDating.com March 9, 2009 at 9:16 am

    Profile ownership is a good point David which is why we do shared ownership with people who require it so they can walk away at any point with the data.

    The nuances is a shared database is always an issue though – on the plus side you get a huge number of members already on your site when you start, but on the down side….. I haven’t come across a downside really, only that when you leave the white label partner you can only take members with you who joined through your site.

    I don’t lose much sleep over it – our revenues are still increasing by 10-15% per month across the board which in real terms means hundreds of thousands of dollars of increased revenues every month – people can be a part of that or not ;)

    With regards to people paying for a badge – I can only base my views on my experience with a social network we ran which did something very similar. Whatever it is people pay for, they’ll regard themselves as “better” than the members who don’t have a badge. Once Markus prioritises those badged members in the search results and contact options (which he will, money talks) then I think you’ll see most of his members paying for the service.

    Good on him, it’s a good move for the industry as a whole and I’m pleased for him.

    Reply

    Tom March 9, 2009 at 9:40 am

    Dave,

    In regards to Customer Service, I agree that the badges themselves may not require much additional customer service (unless the pay module has a lot of problems) but the expectation from users will be if I am paying for something, I will want prompt customer service for all problems I may have with the site.

    Reply

    John McGrew March 11, 2009 at 3:01 pm

    I found this while browsing through the Plenty of Fish Forums, it appears that in an effort to promote his “Serious Member” Gold Star Badges, Markus has chosen to give some of them out. Only this one appears to have backfired on him, as the lady he chose to post it on has her profile clearly written to say she is not there to date. In fact, she is listed as Not Single/Not Looking and thus obviously not a “Serious Member” Here’s the link to the thread and the profile:

    Forum Thread

    Young Ladies Profile
    And it seems he has issued a slew of theses Gold Star Serious Member Badges in an effort to market the sites newest feature for charging members. Seems to me, this just might be hinting at a new marketing technique to make people think others are buying the stars, thus adding credibility to an item where the credibility does not exist. So much for Serious Member’s paying for Gold Stars.

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    Dave Evans March 11, 2009 at 3:44 pm

    Giving out features for free to people are supposedly hot and will drive adoption of new features is nothing new and there is nothing wrong with it, if the person opts-in to the feature. If he did post it on profiles without their knowledge, well he should know better than that. Why would you join the site if you’re not single? Do people just meet friends there? Have not paid much attention to that aspect of the site.

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    John McGrew March 11, 2009 at 3:52 pm

    I wouldn’t say that he gave it to them without their knowledge, as they see it as soon as they look at their profiles, but it appears reading the threads on this, that he did not seek nor gain their permission and the members discovered it after the fact and have no way to remove it on their own.

    As far as those not looking to date joining the site, POF has been evolving for close to the past year from an online dating site to an online social dating networking site, in that it seems a number of his members have chosen the “Not Single/Not Looking” status when commenting on their marital status. This seems to be the most prevalent within those who use the forums on the site. What would be truly interesting would be to see the numbers of members who have joined in the past say, year, who have chosen this option when creating their profiles in comparison those who have opted for a single/divorced/married status and are looking to actively date.

    What I find funny about his assignment of the Free Stars is that they’re ending up on the profiles of individuals who are not looking to date which might lead a member considering purchasing one to feel it is a devalued item and thus not make the purchase. Just looking at this from the position of Devil’s Advocate here.

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    Dave Evans March 11, 2009 at 4:01 pm

    I spend more time in the forums poking around than I do browsing profiles. I’ve taken to looking at the profiles of people who post interesting items.

    Badges are to signal intent, nothing more. Imagine if POF offered something more substantial and valuable like identity verification. Notice I didn’t say background check, there is a significant difference between the two.

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    JamesT March 13, 2009 at 5:16 pm

    when i see a yellow dot on a profile, i think thats one stupid person. wasting hard earned money for a service that is completely free.

    when you try to voice your opinion of this this change on the POF forum, the Moderators are quick to delete posts and comments, Delete and Ban people who disagree with it. they sensor all the posts just like Nazis.

    if anyone is stupid enough to give this guy money for no reason go right ahead.
    where does this extra revenue go to? back in to upgrading the site? paying employees? nope.. there is no employees, no customer service.. it goes in his pocket.

    he makes over 10 mil just off ads. maybe his site cost a few thousand to keep online.. hmmm how can you justify charging money when you add no extra features. and your site contains no employees and is lacking any kind of customer service

    and he i carefully worded his TOS to allow himself to charge people money yet still call his site 100% free

    and if your lookign for someone “serious” its pretty simple to filter youtr searches to only show people interested in long term relationships.. but of course that makes to much sense yes?
    dont believe what you see people just common sense

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    JamesT March 13, 2009 at 5:19 pm

    I see the gold stars on profiles with no pictures.. on profiles in which people are looking for “hang out” and “intimate encounter” i have msged every gold profile in my area and not one of the ladies even knew it was on there profile, let alone bought an upgrade, so where does his research facts come from about increased views and email. its all randomly given out freely. and to anyone who did pay. if this idea does not work you will not get any refund. so i imagine this will be around for 1 year so as to forgo any kind of disputes..
    just goes to show all these were randomly seeded by POF to make people think others are buying this when in fact no one is buying it its a big scam.

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    David Evans March 13, 2009 at 5:20 pm

    People are not stupid because they are doing what they can to stand out from the pack. Not recognizing that is what’s stupid.

    Agree that the deleting and banning is bad news. The truth hurts some entrepreneurs more than others. It’s all about having a thick enough skin about certain things.

    Costs a LOT more than a few thousand to run any large dating site.

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    JamesT March 13, 2009 at 5:22 pm

    it cost alot less than 10 million though.. lol what does he pocket out of that? a lot more than any of us would make in a year..

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    John McGrew March 13, 2009 at 8:59 pm

    A little while back Markus Frind did a post regarding the costs of running POF. At that time, a few months back I believe, the server costs were at $5400 per month, $64,800 per year. Now, this does not include advertising costs which if he is doing it effectively in this market, he is placing another $15,000 out on the current image ads, and more than likely another $10,000 per month on Search Engines. That’s another $300,000.00 per year, for a total of $354,800.00 per year in site costs.

    Now, everyone knows that Markus does not do this alone, he has Katie to handle his advertisers at a minimum, which would entail another $100,000.00 per year in payrolls costs, beneifits and such, provided Katie is not looking to get rich off the POF mine.

    Now Markus could be spending up to $100,000.00 per month on advetising, but I would be surprised if he is investing anywhere near that amount, knowing his QS is 10/10, he does his advertising via Google Adwords, and is known for not straying from the Google system. So, with an annual cost of $454,800 per year, taxes at 15% of the $10M that he makes (That’s $1.5M per year in taxes) his costs of doing business come in around $2M per year Canadian.

    Now, we all know that advertising revenue is down majorly, thus we can figure his $10M per year income from the site has been cut to $5M (50% Loss in advertising revenue) thus he is only realizing a $3M per year profit, in Canadian dollars. Adjust this to the US Dollar where many of his competing sites are based out of and he is only realizing $2.4M per year ($.80 exchange rate approximately).

    So when you bring all of this into mind you can see why Markus is not happy with what his income has been reduced to. In an effort to curb this, Markus has attempted to cut a deal to anyone who wants to advertise by offering ads on his site at $.80 per thousand impressions, minimum of 500,000 impressions per order. If you track him on Google Adwords, these ads run approximately $.90 CAN per thousand impressions, so this is overall a good deal. The problem is that he has failed, unlike Sam Yagan owner of OKCupid, to maximize this revenue and instead relies heavily on Google Adsense to supply ads for his site.

    The problems of the industry are not leaving POF out, he is feeling it the same as all other site owners and thus he is attempting a new direction to steer POF into. This is not a surprise to any of us, as he has hinted at it for the past year in his blog posts. The only real surprise to any of this is, what took him so long?

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    JamesT March 13, 2009 at 10:16 pm

    so if you make 3 million a year for sitting on your ass you gonna complain? haha

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    John McGrew March 14, 2009 at 1:11 am

    James, while I’ll be the first to call Markus out on certain things, I can attest personally that running an online social network is not an easy task and it is not done sitting around. I can assure you Markus has worked his behind off building his site up, and while to many his decisions do not make sense, to him at least they do.

    To begrudge any person the rewards of their work simply not right. He built it, he worked hard to keep it going and now he gets to reap the rewards for that work. Had you built the site, would you think you did not deserve the income it generates?

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    David Evans March 14, 2009 at 9:14 am

    Nice breakdown John. I wouldn’t say that ad revenue has dropped 50% yet and you’re not taking into consideration the affiliate marketing, which, by all indicators, should be increasing earnings. I’d like to know the split between ads and affiliates.

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    JamesT March 14, 2009 at 12:51 pm

    he calls his site 100% free and you will never need to use your credit card.. so explain it to me?

    Qoute from his site.

    “This is a 100% Free Dating Service – NO Charges EVER.”

    Reply

    JamesT March 14, 2009 at 12:53 pm

    and explain how it is good bussiness to delete a member profile simply beciase i spoke my mind in his forum.

    and i didnt say anything that 100 others before me didnt. but im singled out. im gonna pay for that kind of treatment?

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    Markus March 14, 2009 at 1:25 pm

    You dramatically under estimate what it costs to run a site of this scale. CDN&Hosting costs alone run at 40k/month. Canada tax rate is 40% not 15 and adsense years ago long stopped being the primary revenue stream.

    Also if we really got 90 cents in adsense per CPM that would be 2 Billion monthly pageviews * .9 = 1.8 Million a month.

    Reply

    JamesT March 14, 2009 at 3:29 pm

    why not go full paid then. or change your slogon, dont pull out your credit card unless your “serious”

    im not knocking you just dont agree with how you went about it all. and how you seeded the site with “free” upgrades etc.. thats expected from a US bussinessman but not a Canadain lol

    and u still make more then enough money to live more than comfortable, and what a time to indroduce a paid option in this economy, theres to many free sites out there and you will lose memebers which amounts to losing money by makin such a transition

    BTW u shuold look in to your moderator “trappedonbayst” he sensors out alot of posts and speaks nonsense always sputtering propaaganda. you shuold look into hiring real staff so people can actually lodge complaints and not wait months or a year for some kind of response

    at anyrate I enjoy your site, and i just wanted to speak my 2 cents worth which i wasnt allowed to on your forums so you wont hear any more from me.

    good luck in the future.
    karma is a wonderful thing

    Reply

    JamesT March 14, 2009 at 3:56 pm

    remember you goal
    “The owner of Plentyoffish is called Markus and he created plentyoffish because he was tired of seeing faceless corporate dating sites preying on singles. Finding love is not about handing over a monthly fee to a dating site that only care about making sure you stay another month to pay them again. “

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    John McGrew March 14, 2009 at 9:15 pm

    “You dramatically under estimate what it costs to run a site of this scale. CDN&Hosting costs alone run at 40k/month. Canada tax rate is 40% not 15 and adsense years ago long stopped being the primary revenue stream.

    Also if we really got 90 cents in adsense per CPM that would be 2 Billion monthly pageviews * .9 = 1.8 Million a month.”

    Don’t take offense Markus, the Adsense rate was taken from what I know from experience is the rate to place ads on your site per thousand impressions. Everyone who runs the Adsense program on there site wishes they got anywhere near what google charges for the ads. I know I do, and I’m positive you do also. I was simply pointing out that Sam Yagan seperated himself from Google years ago and has done quite well by controlling his own ads and deferring away from the Google programs. If you like, I’ll be happy to screenshot my Google Adwords Accounts to show what I’ve paid out for ads directly targeted to POF in the past. The leverage could be extremely useful in future negotiations with Google.

    As far as my estimates of the cost of running your site, that was based upon a post you did some time back, I can’t recall exactly when, referencing the $5400 per month in server costs. In relations to the taxes, if your running at 40%, then might I suggest a new accountant and additional reinvestment of company revenues into your site or into related sectors within the industry to reduce this tax load. This is one area I can feel assured that your tax bracket is outrageous if you at 40%.

    Apologize if the numbers were off, but I think the point was made that your revenue has been drastically cut by the current advertising reduction and the large number of dollars slipping through your hands and the hands of any site owner, free or paid right now.

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    JamesT March 15, 2009 at 1:02 pm

    markus made his millions if he is losing money now he should jsut delete his site and move on with his life. instead of ripping off millions of people

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    John McGrew March 15, 2009 at 2:41 pm

    JamesT, I’m sure that you will find great pleasure in this:

    “I just upgraded serious members to allow them to have 16 images instead of the standard 8. There are a lot of little things I can give serious members that simply aren’t practical to roll out to the whole userbase.

    What do you guys think of being able to edit your sent messages, as long as the reciever hasn’t read them? Doing this for all users is simply not possible but since serious members are such a small portion of the site I might be able to get away with it. Just depends on how many people actually try and edit messages.

    Any other features that might be useful to ad”

    That is Markus Frind’s original post from this thread on his site:

    http://forums.plentyoffish.com/datingPosts11968938.aspx

    I’ll be screen shotting it for all of us to be able to review it when it gets deleted. So it appears, that Plenty Of Fish is indeed going to a paid venue. I’m sorry to hear this Markus, you had such a great thing going. Time to fire up the marketing machine and get the True 100% Free Online Dating Site growing into something real.

    Thank you for the hand in making mine more popular Markus.

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