Tinder’s business model is as simple as making a swipe in their app. Yes, it is effective and nowadays Tinder is an extremely successful company with a constantly growing revenue. This dating app is one of the most rapidly growing startups among social networks. It has a huge impact not only on the development industry but also on relationships in general.
Its phenomenon has become an inspiration to develop a dating app for many businesses. But if you have ever wondered how dating apps make money, we will clarify the things in this article and explain the business model.
Table of contents
How does Tinder work?
Before we move on to discussing how Tinder makes money, let’s look at the basic features of this mobile app.
The users register via Facebook and create a profile. The sign-in process is fast and effortless as this app imports all the necessary information like phone number, photos, interests, the background automatically. The users can edit it and add extra information optionally. The profile is the core of this business model.
The next milestone is the user location. In Tinder, everything relies on the user’s location, interests, and preferences. This is a must-have feature to add if you want to know more about how to create a dating app that would be convenient and engaging for users.
Swiping is the highlight of this app that caused a boom in the dating app industry. Choosing whether you want to communicate with a person becomes a piece of cake. The user sees a photo and main information about a person, like a name, age, and a brief description. Swiping left means you like this person, swiping right means your dislike and keep on searching. Tinder was the first application that introduced this feature.
And if the swipes coincide and you like each other, there is a match and users can start chatting.
How does Tinder make money?
First, we would like to mention that Tinder earns money in different ways. There are multiple ways of monetization and offers numerous paid features and plans that meet the needs of different users. It is necessary to highlight that the monetization strategies of this dating app are flexible and user-oriented. Keep on reading to find out the successful ways of dating app monetization for your future products.
However, you shouldn’t use all of them right away, you need to consider the unique needs of your application and future audience. Make sure not to overwhelm users with paid content or subscription suggestions, especially if you are a startup.
It works based on a freemium model and offers specific features that are available only if you purchase a subscription. In the US, the subscription cost depends on the users’ age. These features are well-thought and encourage users to upgrade their profiles. It enables users to
- Swipe without limits
- Eliminating location restrictions
- Sending many Super Likes
- Unlimited number of right swipes
Moreover, Tinder plans to launch an Undo opportunity. This feature allows returning users to the lost profile by a left swipe.
It was introduced later than the Plus version. This is an extension of the Plus account and has exclusive functionality available to members only. The users get access to all the features of paid account and the ability to see who liked them. This functionality is helpful if the user wants to find out more about how many likes they have and view the people who liked them. They can swipe only people from this list and receive a match without spending time on other candidates. The price is also flexible and depends on the age and user location.
Apart from paid plans, the users can add their profile to the top list for half an hour. This enhances the possibility of a successful match and makes the profile visible to ten times more profiles. The Plus plan involves this opportunity, but the users can purchase it separately for a lower price.
Free users can find sponsored content on Tinder that promotes different companies, upcoming events, news, and campaigns. If the user swipes right a sponsor profile, they receive a message in a chat. The ability to decide whether you want to begin a conversation still belongs to the user, which is very convenient and important not to overwhelm free users with unnecessary or undesired content.
This is a recently new feature that allows giving a super like to a user by swiping up. For free profiles, there is a limit of once a day, and for paid users it is unrestricted. Users can purchase a pack of super likes at an extended price, which is more affordable than the whole subscription plan.
How much money does the Tinder app make?
Now that we know how Tinder earns money, let’s dive into the concrete numbers. Statistics reveal that the Tinder revenue in 2020 comprised $1.4 billion. Compared with 2019, when their revenue amounted to $1.1 billion, we observe an 18% percent increase. Such rapid growth became possible thanks to a detailed approach to feature and subscription plan development. Tinder is an app that tailored them to correspond to the needs of most target users.
We hope that we managed to answer the popular question:” How does Tinder make money?” with this article and explained the unique business model in detail. Keep in mind that this app has gained huge success among users and increased revenue thanks to its unique functionality and user-oriented approach. Its monetization strategy integrates seamlessly with the goals of this app and helps the user achieve their aims faster.
Another highlight is that Tinder combines different monetization approaches, such as subscriptions with one-time payments. With such a wide range of paid functions, this app is still effective for free users and its basic functionality is enough to reach user goals. If you want to build your own dating app, put your user needs first.