The challenge with this model is that extracting money from users requires repeated action on their part. That subscription money is so much easier. With an average account life of six months, match.com gets about $180 per paid user.
If you went with a Groupon-like model for a site that revolved around sending people on dates, and assuming you could make about $10 on $20ish dates, each user would have to get out there 18 times in order for you to beat the subscription model.
I still think there could be a big opportunity in a site like this, but it's not hard to see why the incumbents hang onto their subscription models for dear life.
http://news.ycombinator.com/item?id=878657
The challenge with this model is that extracting money from users requires repeated action on their part. That subscription money is so much easier. With an average account life of six months, match.com gets about $180 per paid user.
If you went with a Groupon-like model for a site that revolved around sending people on dates, and assuming you could make about $10 on $20ish dates, each user would have to get out there 18 times in order for you to beat the subscription model.
I still think there could be a big opportunity in a site like this, but it's not hard to see why the incumbents hang onto their subscription models for dear life.