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I’ve been listening to the excellent Season 2 of the podcast Startup, which gives an inside look at YCombinator startup The Dating Ring (NYT coverage here). They talk about many important topics, but I had some specific comments on fundraising for dating products.
Every churned customer is a new customer you’ll have to acquire just to get back to even.When you look at a successful subscription service like Netflix or Hulu, you might find a churn rate of 2-5% per month, and you can calculate the annual churn through the following: If you have an 70% annual churn rate, you have to have a strategy to replace almost your entire customer base each year, plus a bunch of percentage points to drive topline growth.Windows Update for Business (WUf B) allows you to keep Windows 10-based devices in your organization always up-to-date with the latest security defenses and Windows features when these devices connect directly to the Windows Update (WU) service.Configuration Manager can differentiate between Windows 10 computers that use WUf B and WSUS for getting software updates.Here are the reasons usually given for why investors don’t do dating: Let’s break it down.
Built-in churn Churn sucks, and the better your dating product works, the more your customers will churn*.Both factors open up the market to a wider audience, reduce churn, and create opportunities for viral growth.Paid acquisition channels are expensive Dating products have historically depended on paid acquisition channels to build their customer base, and other subscription products have generally done the same.Another way to say this is the dating has “intent” the same way that shopping might, especially when you are talking about a paid subscription service.This limits the market size as well as restricting the types of marketing channels you can use to read those consumers.A similar challenge is that these products aren’t “social” in the same way that Skype or Facebook might be.