How does Tinder Make Money – Let’s Swipe Right for the Analysis with Unicornomy!
About Tinder, Funders, Founders & Facts about Making Money
Swipe Right – has become much of a misfit communication Verb these days, people using Tinder are very well aware of how to use this phrase right! Tinder should be credited with all the mammoth tasks of actually putting it right next to “Google it” as a Verb.
Tinder is a “Quick Match” social network app that gives users to decide quickly whether or not they like a particular profile at display on the basis of the images of the person and a short bio.
Tinder Founders: Sean Rad, Jonathan Badeen, Justin Mateen, Joe Munoz, Whitney Wolfe, Dinesh Moorjani, and Chris Gylczynski.
Tinder Funding: It was rumoured that Tinder is raising capital from Benchmark Capital at a Valuation of 1 Billion USD – No news of that front as such.
Tinder is owned by IAC – Inter Active Corp, which is a Media Giant and owns companies like OKCupid, Match.com (Pretty much in the same user base category) as a dating and social product.
Tinder competes with the likes of FaceBook – Where people lurk around adding unknown girls / hot guys in the hope that they would score a 2nd base with the other over a chat or so. Primary competition with FaceBook is over time share and mind share of the mobile user in the age of 18-30. Tinder does about 1 Billion Swipes daily!
Interesting Read : How does FaceBook Make Money!
How does Tinder Make Money
Before we move on to the monetization strategies used by Tinder, we must know of the model that it uses to keep users engaged.
How Tinder Works
Tinder works on the Swipe Gesture of the Touch enabled Devices. As of now Tinder is available on Android and iOS phones.
- You sign up to Tinder with Verified FaceBook Account (To prevent Fake Profiles).
- You enter basic details of Bio, Geo etc.
- Tinder Algorithm finds potential matches (using some data from FaceBook as well)
- You are shown the Images and Short Bio of the Matches (with only first names)
- You can either show interest (Like) them by Swiping Right or By clicking on the Heart
- If you don’t like them Swipe Left or Click on the oXo at the bottom
- The person who you liked, is given a notification, of Your Tinder matches.
- They can swipe right or left as well
- IF they swipe right, you are gonna get lucky! You get a notification of the same and now you can chat and do some other things with them 🙂
- If they don’t, well, you can nothing more with your right hand but Swipe! 🙂
People say that most of their swipes end up getting wasted and they end up comparing it with SnapChat where they can just hook on to the phone number of the girl they like and send them Snaps and chat! Believe me – they are ways apart. Prior to moving on to How does Tinder make Money, please read through SnapChat’s Business Model first for clearing your doubts!
Interesting Read : How does SnapChat Make Money!
How does Tinder Make Money
The basic features (all of them) are free for all Users. Tinder has a Freemium Model to Monetize its huge user base and the billion plus swipes that its Users do. Tinder has following things added to the Premium Account – How does Tinder make Money from TinderPlus!
- Unlimited Number of Swipes – The number of swipes in the Free account are limited and are only regenerated at the end of 24 Hrs after exhaustion of free limit
- Tinder Passport : Tinder for free users is restricted to a fix radius from their current location. With the TinderPlus account the users can fix a location which they are not in and can get Swipe right! (For Travellers)
- Tinder UnDo : Mistakenly Swiped Right or Left when you did not want to! Now UnDo the same with TinderPlus
How does Tinder Make Money from Ad Sales
Up until recently, Tinder was against putting up ads (mobile only) but now they have understood the benefit of the Right Swipe!
Their Ads are similar to “Tinder Profiles” – While you are swiping right to everything blindly, a branded promoting image would slide in smoothly and once you swipe right to it, you will be redirected to the advertisers landing page.
Brands are using this strategy to promote themselves for free on Tinder, which in Turn gave Tinder this idea. 🙂
Hope you guys had fund reading How does Tinder make Money!
Disclaimer: The understanding of the How does Tinder Make Money is of the Author’s himself, neither any investor, banker or VC (local or global) or qualified consultants or the company have confirmed or explained the same to the author and the descriptions, stats, facts and figures, if used, are either obtained through secondary web research or interrogation of relevant search professionals or other resources on the web. Please use your own discretion to use this info when required and by continuing to read, you agree to indemnify the author & Unicornomy from the entire liability arising out of using this info on your own.