Aspiring entrepreneurs frequently approach me personally being an angel investor, touting their revolutionary concept for still another online dating site. I agree the necessity is offered, with more than 91 million singles that are interested the chronilogical age of 19 and 45 all over the world. Yet very little one in ecommerce makes anything, I see since it comes with a larger list of challenges than most other opportunities.
Therefore, we encourage you to definitely examine these challenges as truth checks on your own company concept — dating or elsewhere — before spending all your valuable some time some body money that is else’s vain.
1. The marketplace is oversaturated with rivals.
Based on data, there are many than 5,000 online dating sites worldwide with 1,000 new people showing up each year. In the event that you check your market on Bing and locate figures like these, it is advisable to seek out another possibility where in fact the amount of rivals you will find is lower than 10.
2. This company is affected with the ‘Facebook model’ startup issue.
Numerous online business offerings, like this 1, need thousands or scores of existing users before brand new users and advertisers have an interest to cover money that is real. Therefore, the investment in money and time needed before payback is huge. Facebook invested $150 million before good cashflow. Continue reading