How does Tinder, as a business, make money?

Tinder was launched as a free application in 2013 and in two years changed to a freemium model. This means that the basic application is free but you must pay for upgraded features. In this app, those upgraded features would include, unlimited swipes, changing locations and many other benefits. Tinder began to offer Tinder Plus, which costs between $9.99 - $19.99. Tinder Gold was an extension of Tinder Plus and the next step up. Boost was the newer feature that has been added on. This feature allows users to be the top profile in the area for 30 min. This can be bought for $1.99 to $3.99. All of these different aspects go into the business model for Tinder and ultimately how they make a financial gain. Another way Tinder makes money is from businesses. Different corporation partner with Tinder in order to show their sponsored content in the form of profiles. They have camouflage these sponsored profiles so they almost blend into the normal outline, which makes it less obvious for Tinder users. (Pahwa, 2017) Once a user swipes right to these sponsor pages, an automated message comes up telling the user about the business or event. So does Tinder really make all that money from their app? The answer is YES! “Tinder will generate more than $800 million in revenue this year, according to Match Group SFO Gary Swidler.” (Wagner, 2018)

          We live in a society where people talk and use their phones more than they have actual physical connections with people on a daily basis. So it makes sense that more and more people are switching to a mobile app in order to find love. When you go to a restaurant, if someone is sitting alone, they are usually using their phone. Thirty years ago, when cell phones were not as popular when someone was sitting at a bar alone they might pick up a conversation with the person next to them. These days we are so attached to our phones we don’t even see what’s truly going on around us. Online dating has become a mainstream with the rise of dating websites. “Now, a new survey of nearly 20,000 Americans suggests that spouses who met online have marriages that are at least as stable and satisfying as those who met in the real world – possible more so.” (OK, Cupid: Online Dating Can Lead to Love, 2013) Do you think that online dating that leads to marriages will become more popular than old-fashioned meeting in real life?