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Category: All Interviews

How Disney Fan Dave Tavres Started MouseMingle.com And Scored Massive Press Coverage

Posted on December 21, 2016

OPW INTERVIEW – Dec 21 – Dave Tavres is CEO of MouseMingle.com and describes how he started MouseMingle and got a massive amount of top press within a week of starting his Disney fan dating site. – Mark Brooks

See all posts on MouseMingle

Post by Mark Brooks @ Courtland Brooks.

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CEO Of Twoo Recommends The Match Group Experience, And Introduces Video

Posted on October 14, 2016

OPW INTERVIEW – Oct 12 – It has been nearly four years since Match acquired Twoo, and a little over four months since Joost Roelandts took the reigns as CEO. According to Roelandts, the relationship with Match has proven most beneficial and has provided a wealth of resources. Twoo is also building video into its feature set. The full interview is below, as well as clips of individual questions and answers.

Key information in the interview:

  • Match acquisition and relationship experience
  • The transition from social media to dating
  • Bringing video into online dating

Watch the entire 15 minute video interview above, or, we’ve split it up so you can just watch segments of it below.

  •  Joost’s story
  • What its like working with Match
  • The management relationship with Match
  • Knowledge-sharing with Match
  • The evolution of Twoo
  • The transition to dating
  • Twoo’s new video feature
  • The number of video questions
  • Measuring the success of the video functionality

See all posts on Twoo

Post by Courtland Brooks team

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GreenLight Dating App: PokemonGo Meets Tinder

Posted on September 16, 2016

Greenlight dating app logoOPW INTERVIEW – Sep 16 – GreenLight, a brand new dating app, has just launched in San Francisco. GreenLight works pretty much like Tinder with a few interesting features including a map that allows users to see which locations have the most singles in real time, their relationship status, and how attractive they are. We have interviewed GreenLight founder Tommy Wolf.

What is your background?
BS in Mathematics from Chapman University. Currently working on my MS in Predictive Analytics in North Western's online program. I worked as a clerk for a law firm right out of college and I'm currently a Data Analyst for a real estate brokerage.

What inspired you to launch a dating app?
I wanted to work for myself, and I've been active in the online dating scene ever since graduating college. I thought by handpicking my favorite features from different dating apps, along with adding some features I wished they had, I could make a better dating app than any other that currently exists. So it seemed like a good route to take for beginning my entrepreneurial career.

How is GreenLight different from Tinder?
Greenlight has all the same basic functionality of typical dating apps, (swipe matching, messaging, profile visitors, etc), but additionally we display the locations of groups of singles that meet each user's specifications. We employ a proprietary profile rating algorithm that shows the average attractiveness of people in those groups from 1-10. We also allow each user to specify their relationship status on their profile and on the map as green (single), yellow (it's complicated), or red (taken) to give users an additional search filter. Lastly, we don't offer any premium memberships. All features are free to everyone.

Do you disclose users' location?
Yes and no. Each user is displayed as a green, yellow, or red bulb, (depending on their relationship status) on the map. The "Profiles" tab at the bottom will display a list of profiles for each bulb, but the list will not be displayed if there are 5 or fewer bulbs displayed on the map. The purpose of Greenlight is to let users see where they should go based on where groups are, not individuals. Every user also has the option to not let other users message them through the map, or not appear on the map at all if they don't want to.

How are you funded?
Greenlight has been entirely self funded to this point, but I have some meetings set up with potential investors, so hopefully that won't be the case for much longer.

What is your goal for the next 6 months?
Secure investors, hire an Internet advertising firm to begin a marketing campaign, and begin coding for additional features for when we eventually monetize.

Post by Courtland Brooks team

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Skout Acquisition Puts MeetMe On A Path To $100M+ Annual Revenues

Posted on August 10, 2016

OPW INTERVIEW – Aug 10 – MeetMe had impressive Q2 results and announced their acquisition of Skout, one of the hallmark mobile brands in the dating industry. I spoke to Geoff Cook, CEO and Co-founder of MeetMe, about the acquisition and what it will mean for both brands. – Mark Brooks

Why did you choose to buy Skout?
I have always been impressed by Skout’s number of chats per user per day. We’ve made a lot of progress on MeetMe, going from 8-10 chats per day to 25-30 chats per day, and Skout was having comparable numbers. We felt very familiar and comfortable with their business model. 90% of their revenue comes from ads, which is very similar to our business model. They have 700k-800k DAU, combined we’re ~2M DAU. We looked at some of the top level metrics and saw this merge as a pretty clear pathway to $100M revenue. So it made sense both strategically, operationally, and financially.

Would you say that the acquisition of Skout has expanded your geographic footprint?
It certainly expanded our geographic footprint. ¾ of Skout’s DAUs are international. MeetMe is much more focused on the US. Only half of our 1.3M DAUs are international. Skout is strong in Asia, so this will also increase our density among Asian users.

So, in these areas, will you promote Skout or MeetMe? How do you intersperse the numbers and drive membership between the two?
The first thing we will be working on is the lowest hanging fruit. We can improve their ad program based on our knowledge of mobile monetization. We are also thinking about cross promotion to drive MeetMe users to Skout and vice versa. We do intend to maintain Skout as a standalone brand. But over time, there will be no reason to have two separate cloud based chat systems.

How would you imagine someone describing the Skout end user experience vs the MeetMe experience?
They are very similar. In terms of how they are different, MeetMe has put a fair amount of emphasis on “Discuss” feature, where we transformed feeds into topic oriented communities. Skout has “Queue”, a swipe-able feature where you can like or dislike different users to unlock the chat, which is a relatively important piece of their app. We will continue investing in both “Queue” and “Discuss” and make them better.

How about the teams? Will you have an office in San Francisco? Have any changes been made?
At the time of the announcement, there was a reduction at Skout. Skout’s founders, Christian Wiklund and Niklas Lindstrom, have both agreed to help us for a year. We will maintain a team and an office in San Francisco and are looking to be posting open positions shortly to tap into the talent pool there. Right now we have our main office in New Hope, PA, and we have a satellite office in Philadelphia in order to tap into that job market.

See all posts on MeetMe
See all posts on Skout

Post by Mark Brooks @ Courtland Brooks.

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Mobile Dating Conference Interview – The League

Posted on June 11, 2016

OPW INTERVIEW – June 11 –

 
See all posts on The League

Post by Mark Brooks @ Courtland Brooks.

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Interview With Lija Wilson, Co-Founder Of Troozi

Posted on June 7, 2016

Troozi Founder CEO Lija Wilson mOPW INTERVIEW – June 7 – The Indian dating market is hot. I've known Lija and Nikhil since their days at RSVP. Now they've set their sights on the Indian dating app market. Here's my interview with Lija, the co-founder of Troozi. – Mark Brooks

What's Troozi's founding story?
Me and my co-founder Nikhil Jain met when we were working at RSVP. We formulated a rapid growth plan and tried to destigmatise online dating in Australia. RSVP moved from a #3 position in market to becoming the clear market leader in Australia over a 3 year period. We spent ~7 years working on RSVP before independently leaving to pursue other startup interests. Jain turned his focus to India. India posed an incredibly exciting opportunity for launching a new product focused on urban singles and younger women keen to expand their social circles.

Why did you feel there was an opening in the market?
India's middle class was exploding and more and more young singles were turning to online in the search for connections, friends, fun and love interest in urban centres. Australia in comparison was a very small market and had reached a state of maturity.

Mobile is the most exciting opportunity for the future of Troozi. India has just overtaken the US in smart phone users, now ranking as the 2nd largest market in the world.

Troozi has focused on building its social presence which has been very successful in appealing to the female user base. Troozi now has members all over the country and Indian singles in the US, Australia and the UAE have also jumped on board.

How many active members do you have at this stage? 
We don't disclose our active member figures publicly but our engagement numbers continue to perform well and our churn rate is very small, members are checking their accounts frequently.

Are you focused on women more than men? 
Yes, in our marketing efforts and product planning.

How fast is the Indian dating market growing?
India is still showing strong and rapid growth in online dating, forecasts have the addressable market at ~115 M people and conservative estimates suggest this will surpass 200M by the end of 2017.

Obviously, the growth is being largely driven by mobile usage. In 2015, 100M smart phones were shipped to India, up 23% YOY.

How are the use patterns changing?
Users are becoming more and more comfortable with dating profiles and putting themselves out.

What kind of funding are you looking for at this stage?
We will most likely start to roadshow Troozi for our next raise mid year and our next stage of growth. Our plans for how much investment we will go out and seek to secure will directly to relate to our plans to hit some key milestones this quarter.

What are your plans for 2016-2017 for Troozi?
Our plans for mobile iteration continue to be the priority.

See all posts on Troozi

Post by Mark Brooks @ Courtland Brooks.

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Jaumo Grows To Ten Million Users: OPW Exclusive Interview With MD Jens Kammerer

Posted on May 31, 2016

Jaumo Jens KammererOPW INTERVIEW – May 31 – Jens Kammerer ran KWICK!, a German social network that grew to 2.3 million members over 12 years. Now Jens runs the 10 million strong dating app Jaumo, and has launched Pink. Here's my interview with Jens. – Mark Brooks

What is your founding story? Why start a dating app?
We founded a German local social network in 2001 and operated it until 2011 (the company was acquired). One of the main reasons our members at that time used the website was to flirt and chat with others. We knew the days of those local social websites were over (thanks to Facebook) and that was the reason to start Jaumo: a great place to meet new people, honest and simple to use. At first, Jaumo was a dating website and in 2012 we released apps for Android and iOS. Nowadays we focus on our apps only. The company is based in Germany and is still operated by just us: the two founders. The app is available in over 40 languages and we have members in over 200 countries worldwide.

How did you grow the userbase so fast? What channels did you use and what worked best?
It took us quite a while to get to the first million members. That was in 2014. We worked very hard on expanding and improving our app to offer a unique experience to our members. The growth started to increase and we added 9 million new users in the last two years. Most of them in the last months and we currently add over 30,000 new members every day. We surpassed 10 million members lately and wanted to take this moment to say 'thanks' to all our members. The recipe for our success is simple: we love what we do and we keep things real.

Organic growth is very important for us. We're proud that Jaumo is one best-rated dating apps in the world. We have a top rating from over 400,000 satisfied members in both app stores for Android and iOS. That's one reason why so many new people sign up every day. We have 2 million MAU.

We grew mainly via organic traffic. We have a good standing in the app stores.

What is the single most important feature that users love the most?
The most important feature is the match game called "Zapping". Users decide who they like and when both liked each other it's a match. Simple as that. Other than on match-game only apps like Tinder, members can also see who's nearby and who has visited the profile for example. And of course, most of the features are completely free.

Is Pink like Bumble?
Pink is a new app we launched last year and it offers an optimized version of Jaumo for women. We observed the needs and behavior of our female members and realized that this differs from our male members. With Pink, women are always in control: they only get messages from the people they like, and they can decide who can start a conversation. Unlike Bumble, there is no timer for matches and women do not have to make the first move. With Pink, men usually send a request to women and women decide if they want to start a conversation.

What do you charge for your two apps?
It depends on where the user is from. US is $10.99, European countries like Germany or Italy 9.99 € for one month VIP, our premium membership. We have lower prices for 3 and 12 months. We also offer our members to become a VIP for free when they download other apps for example. All basic features are free.

What are your plans and goals for 2016?
We're working on the final steps for our version 4.0 where we focus on a simpler user interface and an improved user experience. We had the biggest growth in our company's history for the first quarter of 2016 and we're on the best way to an even better second quarter. Our goal is to reach more than 16 million members at the end of the year.

Post by Mark Brooks @ Courtland Brooks.

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Interview With Affinitas New CEO, Jeronimo Folgueira

Posted on March 31, 2016

Affinitas Jeronimo Folgueira for interviewOPW INTERVIEW – Mar 23 – Three years ago we interviewed Lukas Brosseder, the MD of Affinitas, which operates eDarling (see news) and Elite Singles. He co-founded the company with David Khalil in 2008. In October, 2015 they hired a CEO, Jeronimo Folgueira, away from betting company Betfair. He was Betfair's MD, International. 

Update – Mar 31 – I asked Jeronimo to share the revenue figures for Affinitas. He has allowed me to divulge that in 2015 they made slightly over 60 million Euros revenue and were profitable for the second year in a row. – Mark Brooks

What is Affinitas' vision?
Our vision is to become the leading player in the premium segment of the online dating market with our EliteSingles and eDarling brands. We don't want to be the largest. We want to be the platform where you can find the best quality of people for a serious and long-term relationship.

What are your top brands now?
EliteSingles, together with its localized versions such as EliteRencontre, now represent over 75% of our business. Particularly in the English and French-speaking markets, the past two years have seen this brand thrive and deliver exceptional performance for the company. 

Have you mastered mobile at this stage? 
We are nearly there. Half of all our new users are currently registering via mobile and that percentage keeps growing every month. Also from a product perspective, we have shifted our focus to invest in mobile first and foremost. There are always improvements to be made on the product, but I'm confident that by next year we will be where we want to be on the mobile front. We see mobile as the future of our industry and we are embracing that future.

What have been your biggest challenges in the last 6 months?
Launching our site in the US, one of the most competitive dating markets in the world. We have dedicated a lot of resources and attention to this project, and we are extremely pleased with the results we are seeing so far. The US has become in just 6 months our largest market, and we are just starting there.

How would you describe the matchmaking philosophy and methodology of EliteSingles and eDarling?
Our matchmaking algorithm is quite complex and takes into consideration user profile and user behavior variables plus individual preferences stated by our users in order to generate the most suitable matches. We believe that, alongside personality compatibility, the level of sophistication and  intellect of a user's  partner is absolutely crucial for a happy and long-term relationship. We therefore are carefully considering numerous variables that describe one's sophistication and lifestyle next to our scientific personality profiling. As one specific example: the educational background is really important to us and our users. More than 70% of our users have a university degree. Ultimately, our users are looking for someone to have by their side who shares their lifestyle, beliefs and interests, and for those demanding users we provide by far the best platform to find exactly that.

What are you plans for 2016?
Our plan for this year is to focus on our existing markets and secure the leadership position within the premium segment of the online dating market. We want to be the number one choice for people looking for a serious long-term relationship with smart and interesting people.

We do not see the need to expand to new countries for now. The US is already a big challenge and we have plenty of room for growth there. Moreover, we are already present in 4 continents and 25 countries, and over 90% of our business is generated outside Germany. In that respect we feel we are international enough already. Instead of launching new countries, we want to focus this year in owning our segment in all the markets where we operate.

In 2015 we grew revenues by 22%, and we expect that growth to accelerate in 2016. In recent weeks we have seen growth rates of over 30% compared to last year and we feel we are well positioned with EliteSingles to keep this momentum going during 2016.

See all posts on eDarling
See all posts on EliteSingles

Post by Mark Brooks @ Courtland Brooks.

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Interview With Jon Birger, Author Of Date-Onomics

Posted on March 15, 2016

OPW – Mar 15 – There’s a shortage of men according to Jon Birger. Here’s an overview of his thoughts on the subject, and his book. – Mark Brooks

Is your book controversial?
I’m in favor of controversy if it sells books. Certainly there have been some men’s groups who didn’t like the theme. A few feminists here and there seem to think I’m actually endorsing marriage, which I’m not. If you read the chapter on religious groups, ultra-Orthodox Jews are wild about the way I portrayed their marriage culture. Other than that, I think the book has sparked a pretty good conversation.

Let me pull a quote here. “In 2012, women earned 1,000,000 bachelor degrees, versus 765,000 for men. 34% more women than men graduated from college in 2012. By 2023, women college grads will outnumber men by 47%.” …Why?
The last year that men and women graduated from college in the U.S. in the same numbers was 1982. Pretty much every year since 1982, women have incrementally been outpacing men when it comes to higher education. This isn’t just in the U.S., pretty much every Western country – the U.K., Canada, Australia, Italy, and Israel – the numbers are all trending in the same direction. The argument I make in the book is because it’s happening in every country, you can’t blame this on public policy. You can’t blame Title IX in the U.S. for holding back men, which is an argument you hear from some men’s groups.

What is Title IX?
Title IX is a law passed in the 1970’s in the U.S. that basically prohibits sex discrimination in any educational institution receiving federal aid. Basically, prior to 1972, colleges would routinely discriminate against women when it came to athletics or admissions. In high schools, girls might have been excluded from honors programs for no good reason. Title IX basically leveled the playing field and forced educational institutions to stop discriminating against school girls or against women in higher education.

There’s an idea out there that, these days, Title IX has gone too far and it’s actually favoring women in the U.S., but as I argue, the same trend is happening everywhere around the world. You can’t blame a law in U.S. for what’s happening in Italy.

My argument is that the reason women are now outpacing men in higher education and universities, is because the old discrimination basically hid a biological truth: girls are developmentally ahead of boys when it comes to brain development. They’re intellectually more mature and socially more mature than boys by about a year. Intellectual and social maturity goes a long way towards predicting how well you perform in high school and how well you do with college preparation. What’s interesting is that there’s some evidence that if you hold back boys – if you have them start first grade at age 7, instead of age 6 – that will go a long way towards leveling the playing field.

How do you see this changing the dating behavior?
The core argument of my book is that these phenomena that we are so familiar with: the everything-going-for-her, educated woman who can’t seem to meet a decent guy, while lesser men can’t seem to stay single for longer than ten seconds. Also, the growth of the hook-up culture. These are both by-products of lop-sided gender issues. In the U.S. and in most Western countries, we now have four millennial educated women for every three millennial educated men. There’s been a ton of social science done by academics on how sex ratios affect behavior. The consensus is that when men are in over-supply, the dating culture is more traditional and more monogamous. When women are in over-supply, the dating culture permissive, more sexualized, and less monogamous. That’s the core argument of Date-Onomics.

How do you think dating sites should adapt?
I’m probably one of the few people who pushes back against this idea that dating apps or dating sites are actually responsible for the dating culture becoming more permissive or more sexualized. I don’t buy this idea that Tinder is to blame for the hook-up culture. The one bit of advice I do have is probably more directed toward people who use dating sites than people who run them, but perhaps the sites themselves could factor this in. Obviously, it wouldn’t matter so much what the gender gap was in higher education if we were more open minded about who we date and eventually marry.

Over the past 50 years, there’s been a big trend toward what economists and sociologists describe as assortative mating. It’s a fancy way of saying that university graduates tend to date and marry other university graduates. Men don’t really get penalized for this kind of classism or close-mindedness, but women do because they are limiting themselves to a very narrow dating pool. They’re basically empowering educated men to act like jerks.

Not long after the book came out, I got an email from a woman who read the book and told me she was happily married for a few years. She wanted me to know that she met her husband after she unchecked the college grad box on her online dating site. She stopped searching for people who were college grads like her. I do feel that online dating has kind of made this problem worse, because searching for a date on an online dating site is sometimes a bit like choosing options on a car. You check boxes for the things that you think you need. If you’re the children of educated parents, then no one thinks twice about checking that box for seeking another person who went to college. Others may disagree, but I do not believe that a college degree or university degree makes you a better wife or a better husband. I believe that if we were all more open-minded about this sort of thing, some of these inefficiencies in the marriage market would go away.

I used to live in Silicon Valley, and I headed east and met my wife in Prague. Your advice is the opposite for women. Women should head westward. Can you tell us more about that?
Silicon Valley interests me on many levels. It’s actually one reason why I do not believe that dating apps or hook-up apps like Tinder are to blame for the hook-up culture. If you look at the marriage rates for college educated women in Silicon Valley, they are through the roof. In Silicon Valley, or in Santa Clara County, which is a geographic proxy for Silicon Valley, 78% of college grad women in their 30’s are married. That compares to 67% nationally. If you look at cities like Chicago, Atlanta, Houston, Washington, New York, and Boston – in those cities it’s all 50% or maybe 40%. The marriage rate in Silicon Valley is sky high. I believe that’s because the demographics of singles who are college grads in Silicon Valley, there are 30% more single college grad men age 35 and younger than there are single college grad women. As the social science predicts, when men are in over-supply the whole dating culture becomes more traditional and monogamous. You actually see it in the divorce data, too. In Silicon Valley or Santa Clara County, the percent of college grad women in their 30’s who are divorced or separated is 4%. Nationally, in the U.S., it is 9%. The marriages there are more stable.

You were a reporter for Crain’s, you were a reporter for Red Herring, and Fortune as well. What led you to write this book? What inspired you?
I normally write about much more boring stuff like the stock market, oil, and gas. The editorial staffs at my last two employers, Fortune Magazine and Money Magazine, were disproportionately female. More women than men were on the staff. I couldn’t help but notice that most of the men were married or involved in long term relationships. Most of the women, who I think I can objectively say, had more going for them dating wise – better looking, better conversationalists at cocktail parties and the like – were single and unhappily single. So many of them had these dating stories or histories that made no sense to me as an old married guy. They would go out and date and guys would never call them back. They had boyfriends who would cheat on them unrepentantly. Some of them, including some of the most beautiful women I know, claim to never get asked out on dates at all.

I think, for me, the tipping point was a lunch I had with my friend, Sarah, who had been dating the same guy for a while. Just so you know, Sarah is fantastic in every way. She’s really smart, really nice, really beautiful, et cetera. Everyone assumed that she and her boyfriend, Matt, were well on their way to getting married. I casually asked her, “How’s Matt?” and her expression basically crumpled and she said, “Oh, we just broke up. Matt told me he wasn’t quite ready to settle down.” Here’s the thing, Matt was 45 years old. They had been dating three years, and Sarah was 38. Everybody knew that Sarah wanted to get married and have kids. For this boyfriend to basically run out her clock, so to speak, and not marry her after dating for almost three years, all seemed kind of cruel to me.

I wanted to explore why dating was so much harder for women like Sarah. It should have been easy for her, because she’s kind of a catch. However, it was hard for her and easy for Matt, even though I wasn’t so impressed with Matt. I think this is a familiar story. Why is dating so much harder for women than men? If you go into any book store, there are 20-30 dating books on the shelf, almost all of them aimed at women. The message is that women are bad at dating. It’s their fault. If only they would follow 37 not-so-simple rules, they too would meet their match. It’s my argument that it’s not that you’re returning his text message an hour too soon, or an hour too late. This is a demographic problem, not a strategic problem.

People choose things that they probably shouldn’t and we don’t weight things the way we probably should. Is there an answer for the dating industry to do the responsible thing?
I’ve always thought that the one really good investible idea that could come out of the book, would be creating a dating site that was geared towards pairing educated women with working class men who are interesting. In the African American community in the U.S., the gender gap in college is much wider and much more long-standing. As a result, African American women are much more likely to be married to working class guys. It’s much more accepted in the African American community.

If you’ve ever seen a Tyler Perry movie, he makes a lot of comedies built around African American families and the African American experience. His movies always have some high-powered African American career woman married to a mechanic with a heart of gold. Something like that. I like to joke around, that if this were a white movie, you would need a ten minute on screen explanation for why Julia Roberts’ character was married to a fireman. It’s all much more matter of fact than the African American community. It’s my view that African Americans are on the leading edge of a bigger social change. Twenty years, or ten years from now, these pairings that I call mixed collar marriages, will be much more common going forward. I would figure out some way to pair up the firemen, policemen, mechanics, or electricians, with the female lawyers.

Post by Mark Brooks @ Courtland Brooks.

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The Truth About True

Posted on March 1, 2016

True.com ruben buellOPW – Mar 1 – Mark Brooks: Remember True.com? (see news on OPW). True was started in 2003 by Herb Vest, who had an 8-figure exit in 2001 with his innovative but controversial H.D. Vest accountancy firm to Wells Fargo. I remember sitting down at iDate in 2004 with him and his strategist, Trish Bellows, when the site was TrueBeginnings.com. After iDate they relaunched as True.com and started to scale up rapidly. (Full disclosure: True were a client of Courtland Brooks for a couple years circa 2005). The company grew rapidly and was similarly innovative and controversial, and achieved 8-figure revenues a few years later. Then it went into steep decline but soldiered on through to 2013. Ruben Buell is the former CTO and President. I asked him what happened, and he weighed-in with this frank account.
__

Ruben Buell: At the peak of our success I was managing over 10 million dollars a month in marketing spend. We had grown a company from nothing to over $130 million a year in revenue within four years. It took longer than that to unravel, but it seemed just as quickly as we had risen, we had fallen back to nothing. What happened, and what changed?

Much of what happened at True was external, but internally we had done nothing to protect ourselves in case we hit a speed bump. We were moving at full throttle with full confidence in ourselves, our technology and our plan. 2008 presented one large-ass speed bump. The success of our marketing and site had hidden other problems that existed within our business model. When the housing market collapsed and the banks began pulling back credit we did not fully comprehend how that would affect our business model. It became very clear very quickly.

Online dating is a recurring business model. We charged individuals an average of $55 a month for our services.  As with all online dating sites some people used the services and huge numbers of other individuals just never bothered to cancel. It is the cornerstone of the industry, people are lazy. In 2008 the banks were cancelling credit cards en masse. The cards they didn't cancel pulled the credit down. Individuals didn't have any additional room on their cards. This resulted in monthly billings dramatically falling off a cliff. When half your customers have their cards cancelled, it isn’t exceptionally great for your business model.

2008 hit True harder than other large dating sites for several reasons. The primary issue being lack of capital. We were putting every dollar we earned back into marketing spend. We were growing the business as fast as we could, and why let money sit in the bank earning a percent and a half when it is earning three hundred percent over eighteen months? When 2008 hit our models completely changed. Our ROI calculations no longer worked. Ten million a month in spend no longer made sense. We slashed spend to what was working well, or at least what seemed to be working. The recession continued and things did not get better for a very long time. Marketing spend went from ten million a month to three million. We did not have the capital to ride out the storm. We also had not spent money on traditional branding. All of our marketing was directly targeted on the Internet. This meant that we didn't have traditional goodwill or free traffic organically that had been built up year after year. So when we could not advertise at high levels any longer we could no longer replace the clients we had.

The company itself was also just too big. True was around four hundred and fifty employees when the recession hit and we were very reluctant to let any of them go. We had just cut our marketing spend by two-thirds! In the online dating space that really means you need to cut your staff by the same amount which we just were not willing to do. Not right off the bat at least. It really was one of the key mistakes at True since the beginning. 

We tried to be everything to everyone. We spent money and had staff focusing on psychological testing, and continuous site improvements, better matching algorithms etc. The truth in the dating industry really is that you need to get your site up and running well, and then spend everything on marketing. It is one of the misconceptions in the industry. When truth be told once you figure out how to get the right picture in front of the right person they sign up and pay you money. True could have competed just as well with a third to half the staff that we had in place. 

There were other factors that helped take down True. From always balancing credit card charge back rates to the rise of Facebook and therefore the loss of MySpace as an advertising source.  The CEO going through a terrible divorce and landlords that were out for blood.

We had our chance to profit hugely from True. In 2007 we were meeting with investors. The firm was worth $250 million dollars. The initial investment was a little more than $50 million dollars so this would have been another huge success for our Founder/CEO, Herb Vest. We did not agree to sell. The company was just taking off too fast. At the end of the day it was the biggest and most expensive lesson to learn. 

When you have a chance to cash out at a huge profit, take it. You never know what the next year or the next quarter will bring for you. Timing is everything. 

Post by Mark Brooks @ Courtland Brooks

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