Tinder is among the most popular dating apps. Initially named MatchBox, it leveraged a “double opt-in” mechanism that helped remove the initial friction of having to meet strangers. Later on, the product was renamed Tinder. The company (now parts of the Match Group) makes money via its main subscription plans and premium features like boosts and super likes.
Tinder is a North American online networking and dating application.
The prototype for the app, named MatchBox, was created at start-up incubator Hatch Labs by Sean Rad and Justin Mateen. Rad had identified an absence of platforms allowing users to meet each other and noted that a “double opt-in” system could alleviate the stress of interacting with strangers.
Six months after creation, the prototype was renamed Tinder to match the flame logo designed by eventual CCO Chris Gulczynski. Then began an aggressive marketing campaign, which involved launching the app at multiple college campuses. By 2014, there were over 1 billion swipes per day equating to 12 million matches.
Tinder became a part of Match Group in 2017, a portfolio of popular online dating services including OkCupid, Meetic, Match.com, and PlentyOfFish. As of Q4 2020, Tinder had 6.7 million paid subscribers, with almost 1 in 5 adults in the United States having used the service.
Tinder revenue generation
The app is free to use, but Tinder subscribers can pay for a variety of added features and functionality. Let’s take a look at them below.
In addition to the free “plan”, users can upgrade to one of three paid plans:
- Tinder Plus – starting at $9.99/month, users get unlimited likes and rewards with 5 super likes per day. Location can also be changed for those using the service while on vacation.
- Tinder Gold – starting at $29.99/month, users get all Tinder Plus features in addition to top picks and the ability to see who likes them.
- Tinder Platinum – a relatively new plan starting at around $39.99/month. Platinum users can message others before they match and see prioritized likes.
Prices for each plan vary according to geographic location and market, particularly if the company is beta-testing new features. Like many subscription services, a cheaper price can be obtained by paying six-monthly or annually. For example, the cost of the Tinder Plus plan drops from $9.99 to $4.17 per month if paying yearly.
Prices are also dependent on age, which has attracted some controversy. Users over 30 years of age are generally charged much more for equivalent service than those under 30. Anecdotal evidence suggests that price is also dependent on geographic location and sexual orientation.
Tinder argues that its dynamic pricing allows the more budget-conscious younger generation to access paid subscriptions.
For users who want extra functionality without signing up for a plan, they can pay for premium features on a once-off basis including:
- Boosts – which increase visibility.
- Super Likes – which provide extra social signals of profile popularity.
Again, prices are dependent on the abovementioned factors and cheaper prices can be had if purchased in bulk.
- Tinder is an American online dating and networking application. It was created by Sean Rad and Justin Mateen at start-up incubator Hatch Labs. Originally called MatchBox, the name was changed in 2012 to reflect a previously designed logo.
- Tinder operates on the freemium model with three paid plans for extra functionality. Prices are highly variable and are dependent on age, geographic location, and whether plan features are being tested in new markets.
- Tinder also gives free users a chance to enhance their experience by purchasing Boosts and Super Likes.
- Tinder Overview: Tinder is a popular North American online dating and networking application known for its “double opt-in” mechanism that reduces initial friction in connecting with strangers. It’s now part of the Match Group, a portfolio of dating services.
- Origin Story:
- Tinder was initially developed as a prototype named MatchBox by Sean Rad and Justin Mateen at Hatch Labs.
- The concept of a “double opt-in” system was introduced to make interacting with strangers less stressful.
- The app was rebranded as Tinder and launched with a flame logo, which led to an aggressive marketing campaign.
- Tinder gained rapid popularity, with over 1 billion swipes per day and 12 million matches by 2014.
- Integration with Match Group: Tinder became part of the Match Group in 2017, which includes other dating services like OkCupid, Meetic, Match.com, and PlentyOfFish.
- Revenue Generation:
- Tinder operates on a freemium model, where the basic app usage is free, but users can pay for additional features and functionalities.
- Subscription Tiers: Tinder offers three main subscription plans:
- Tinder Plus: Offers unlimited likes, 5 super likes per day, and the ability to change location. Prices start at $9.99/month.
- Tinder Gold: Includes all Tinder Plus features, plus top picks and seeing who likes you. Prices start at $29.99/month.
- Tinder Platinum: Offers features like messaging before matching and prioritized likes. Prices start at around $39.99/month.
- Dynamic Pricing: Prices vary based on factors such as geographic location, age, and market conditions. Discounts can be availed by opting for longer subscription durations.
- Premium Features: Users can also purchase premium features individually, including Boosts to increase visibility and Super Likes to indicate profile popularity.
- Pricing Variability: Tinder’s pricing structure takes into account factors like age and location, leading to some controversy. Older users and users from different locations might be charged differently.
- User Engagement: As of Q4 2020, Tinder had 6.7 million paid subscribers and is widely used, with nearly 1 in 5 adults in the United States having used the service.
Read Also: How Does Bumble Make Money.
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