Wednesday, October 31, 2012
The White Label Dating enigma???
I have just seen this post at Online Personals Watch about " A Record-Breaking FY2012 "
"WhiteLabelDating paid out over USD80 million in revenues to its top-tier and fast-growing partners. "
Mark Brooks had published a comparative study about White Label Dating sites this year.
Free online dating sites are only marketing tools to send prospective customers to paid online dating sites.
PlentyOfFish (POF) as the biggest freemium dating site has a revenue in the range of USD40 million.
PlentyOfFish also owns and operates several white label online dating sites which uses to receive payments from paid daters.
The IAC (Match, Chemistry, OkCupid, Meetic Group, People's Media Communities, SinglesNet, DateHookUp and more) is the biggest online dating operator and receives a revenue in the range of USD 700 million from its dating business unit.
In a recent article at Paid Content, The Guardian revealed "Guardian News & Media's latest annual operating loss grew 42 percent from GBP33.1 million to GBP44.2 million (USD69 million) thanks to the costs of digital investment and of ongoing staff cutbacks. Digital revenue, a significant part of which is dating classifieds, grew 16.3 percent to GBP45.7 million."
So a big company will never use a white label dating company to power its online dating site.
"WhiteLabelDating provides the dating software, membership database, payment processing, customer support, hosting infrastructure and much more. You provide your brand, website design and marketing and we do the rest." When you use a while label dating solution, you really do not own anything, you spend your money in marketing, but you do not own the database of clients, if you want to leave or launch a dating site by your own, you will lose everything.
How WhiteLabelDating had reached those big numbers of its revenue?
Because if you check some of their partners they really do not have traffic at all, like PlentyMoreFish or the dating category at the Independent.
(Just surprised to see PlentyMoreFish redirects to PlentyOfFish from USA, Canada, Brazil and Australia. Remember PlentyOfFish Media Inc. had sued PlentyMoreFish but lost circa 2011)
The Meetic Group is in the range of 760,000 paid subscribers, and suppose the same applies for the WhiteLabelDating company. They claimed to power "over 7,600 sites across 7 countries for a vast network of international partners whose database totals over 16 million members." In August 2012 alone, over 775,000 members joined a dating site powered by WhiteLabelDating, with the company predicting to break through the "1 million new members a month" milestone in the upcoming months.
7,600 sites with less than 100 paid members on AVERAGE each one?
Is there any other explanation?
Like are they running some big adult online dating sites ?
could some of those partners are using white label dating sites to launder money?