Hacker News new | ask | show | jobs
by derefr 1886 days ago
Month-to-month is just as bad. The ideal business model for a dating site, from the users' perspective, is a one-time advance payment. This puts the business into the situation where they have an incentive to get you satisfied as quickly as possible, so that they can spend as little time/money on you as possible, so that your value to them doesn't go negative from allowing you to spend too much of their time/money.

This is, as it happens, how professional matchmakers tend to charge.

3 comments

> This puts the business into the situation where they have an incentive

If the payment is a one-time advance payment, I would imagine this disincentives the business to truly do their best, since they already have your money.

I would think, idealistically, maybe the best model would be an advance payment but with a money-back guarantee of say half the payment if you don't find a match through them.

Legally establishing that you don't find a match could be troublesome though, since the "couple" that actually liked each other could both claim they didn't match, get their 50% back, but you as a business would have no recourse if they got together and lived their lives happily ever after, behind your back. You don't have "rights" to their personal life together as a business.

Unless of course it was a government-run dating service that had marriage, housing, and financial records of everyone. That might work. And for many reasons it's in the best interest of the government to get as many people married as possible.

You don't need a refund. Just presume an efficient market of such companies, where the matchmakers who actually make matches have better reputations, and the ones who don't quickly go out of business. That's how most single-shot service-provider businesses work. (At least, the ones with clear success criteria. Psychics and the like never lose reputation, because there's no standard to measure their claims against.)

The one thing single-shot service-provider businesses (including professional human matchmakers) will do, though, is to calculate a quote for their service, corresponding to how much trouble they think your account is going to be for them. They don't usually bill more if it turns out to be even more of a challenge, but they do refine their quote process after each experience.

Though also, back to refunds: a refund guarantee doesn't need to be part of an explicit business-model, to be part of the effective business model. Dating sites charge people's credit cards. Large one-time charges from unknown companies you don't have an ongoing relationship with are exactly the type of thing that banks/credit-card companies are happy to do charge-backs for. Whether they offer refunds or not, the system will offer refunds for them — and kill their business by taking away its payment-processing if too many users ask for said refunds.

> Just presume an efficient market of such companies

And those companies are in the business of matching spherical cows in a vacuum.

Efficient markets are useful as a simple model, but you don’t get to wish away real-world problems by pretending the world conforms to that model.

I’m talking about a game-theoretic dynamic that’s easily observed in real world professions (e.g. plumbers, cleaners, art conservators, etc.), and even in exactly the same industry (human professional matchmakers.) The “presumption” here isn’t really much of a stretch.

It just-so-happens that dating sites don’t currently follow this model, because an external force (Match Group) came in and explicitly chose to consolidate the market into a cartel, where 95% of “competing” dating sites are actually in collusion due to shared ownership. But there’s no reason to expect that situation to last forever, any more than there’s reason to expect the dominance of the currently-dominant social network (MySpace/Facebook/etc.) to last forever.

Actually one would expect the leverage of controlling the market to provide enough funds to pay emerging players multiple times their likely expected result of rolling the dice and trying to compete to continually fend off would be rivals. Absent interference in the market one would not be extremely shocked to see the same dominant players in social media and dating 20 years from now.
The efficient market hypothesis is wrong.

Here’s why: it assumes that the only form of power or leverage that exists is supply and demand. However there are all kinds of forms of leverage in the real world. There is legal power. Voting. Guns. Unions. Price fixing. Cultural norms. Marketing. Blackmail. All of these are forms of leverage and they are not special cases; rather, supply and demand is one special case which comprises a fraction of the total pressure on wages and prices and success or failure at any moment.

Sure, but if it doesn't have rundle potential it's not a modern business.
IMO the ideal business model from users' perspective could be pay-as-you-go, where you pay for each individual you want to send message to (e.g. $1.99).
There are a lot of dating sites at least in Scandinavia/central europe, where men pay per message (or usually buy message packs, it ends up being around 1€ a message IIRC).

The (mostly) men answering these messages, pretending to be women, get paid around 0.15€ per reply. And obviously writing messages where they try to prolong the conversation and turn down real life meetings or changing to other (free) messaging system "for now"

Why does the system charge men and pay women to message, instead of just charging everyone to message?

I would have thought that of all places Scandinavia would not price-discriminate users based on their gender ...

Because if you made women pay, the pool of women would shrink considerably and there would not be enough women for men to message to. Ideologies of gender equality aside, simple observation shows that dating is a women's market. Not even just with humans as biologically, women have a lot more to risk (risk of pregnancy, risks associated with being physically weaker etc.) so they choose while men present themselves and try to "woo" them. Of course not always, but it is a very stable base to build up on. If they made both sexes pay, I bet platform owners would earn a lot less as fewer messages would get exchanged overall.
... until the men who woefully find out that there aren't enough women get off the platform and find a ton of available women?

Or until the women find out that all the men are online and figure out that maybe they need to get an account too?

I mean, the numbers are still close to 1:1 so ultimately it should work out if you treat men and women equally.

If you make men pay you are only propagating stereotypes that men should always pay (and indirectly as a result) that men should get more pay, and that men should be leaders and women should be followers. Treat both equally and start we start eliminating these stereotypes. Women can and should be leaders as well in modern society, including in initiating relationships.

I mean, in cave people times, yes, men had roles and women had roles, but this is 2021, and we should be a whole lot more civilized than assuming roles based on gender, no?

They charge men because presumably men will pay.
Any online dating site that had the fantasy that women had to join their site to get a date would trivially and quickly be disabused of this delusion. The site is following not creating the gender dynamic this is especially true where multiple dating sites all cater to the existing dynamic.
If you're running a business things like actually pricing based on the market you've got rather than the one people idealistically wish you had start to make a lot of sense.
Even Scandinavia is not immune to gender disparities in online dating
It might be because men unfortunately, as a group, disproportionately misbehave in these situations. Sending unwelcome dick pics, sending aggressive messages to people who don’t show any interest in them etc. I’ve wondered myself if charging us to send messages might rein in the antisocial behaviour a bit.
This isn't why, at all.
Care to elaborate on your certainty? Have you ever spoken with women about their experiences with online dating?
Asymmetry in gamete size
Today I learned a clever new word. Thank you :)
If you wanted to go down this route you would pay per date, otherwise what are you paying for? Sure, the algorithm may jinx it by sending you on more bad dates than you wanted, but it would get you further than just a message.
> pay per date

Hmm, I'm pretty sure that's been a business model for a very long time.

We need an uber for ____
Maybe ideally yes, but that's assuming you only had the option to message them through the platform.

You could always message people for free outside the platform, considering any profile worthy of messaging probably lists enough information to find them on, say, LinkedIn or Facebook, and users likely often drop their personal websites or Instagram/Twitter IDs on their dating profiles.

That would incentivizing matching people with those whom they want to message but aren't likely to start a relationship with.