There used to be a stigma to using a dating agency to find love, but the internet has changed all that.
Online dating has become enormously popular over the last 15 years. It’s estimated that one in five relationships worldwide start online, and according to the Daily Mail, the internet dating industry contributed around £170 million to the UK economy in 2012 – the highest turnover of any European nation, ahead of Germany with £164 million and France with £99 million. The paper estimates 1,500 of Europe’s 5,000 dating websites originated in Britain.
Such is the importance of online dating to the UK economy, the Office of National Statistics (ONS) has added the cost of it to the basket of goods and services used to calculate inflation rates.
So if you’re thinking of starting an online dating business, it’s fair to say you’ll be entering an industry rife with opportunity. What’s more, internet dating is among the few areas of business unaffected by the squeeze on disposable income following the economic difficulties of recent years. In fact, many agencies reported a rise in membership during the recession.
Kate Devine, online marketing manager of mysinglefriend.com, told Huffington Post UK: “Online dating is an industry that can sustain a recession – people may cut back on luxury items and the amount they go out and stay at home instead. This makes online dating websites an appealing and more affordable place to meet new people.”
Karl Gregory, UK and Ireland managing director of match.com, agreed, commenting: “It’s traditionally a time for people to reassess their life priorities, meaning that relationships are front of mind.”
However, as the figures suggest, it’s a very competitive area. The big names tend to dominate the mainstream market – meaning new entrants should focus on differentiation and finding a niche. But even that could prove a challenge, with so many niche sites already in existence, such as JDate (for Jewish dating), Asiand8, Muslim & Single, Uniform Dating, Veggie Romance and Yoga Romance. There are even specialist sport lovers’ sites such as Sporty Singles and Rugby Lovers.
So you could have your work cut out finding room in the market. If you think you’ve found a niche, research the idea thoroughly to make sure it’s not already covered by another site. You also need to find out whether there’s actually a market for it so find out the relevant numbers relating to your potential customer base.
Set-up costs for the business should be relatively low. You can start the enterprise from home and your main expense will be the cost of building your site – you’ll need to purchase a domain name and pay hosting and web design fees, etc.
Think carefully about what you charge your customers. It might be an idea to offer free trials to grow your list of members. You could also encourage long-term sign-ups with discounts and special deals. Have a look around at similar sites to yours to get an idea of the payment plans available and refine them to suit your business model.
You’ll need to comply with privacy laws regarding your members’ details and data. For more information, visit the Information Commissioner’s Office (ICO) website: http://ico.org.uk/for_organisations.
Also consider joining the Association of British Introduction Agencies (ABIA), which provides a code of practice for members and can help you with advice and guidance. For more information, visit: http://www.abia.org.uk.