Aspiring entrepreneurs often approach me personally as an angel investor, touting their revolutionary concept for still another online site that is dating. We agree the necessity is offered, with more than 91 million interested singles between the chronilogical age of 19 and 45 all over the world. Yet very little one out of e-commerce makes hardly any money, I see since it comes with a larger list of challenges than most other opportunities.
Therefore, we encourage one to evaluate these challenges as reality checks for your own personel company concept — dating or elsewhere — before spending all of your some time somebody money that is else’s vain.
1. The marketplace is oversaturated with competitors.
Relating to statistics, there are many than 5,000 internet dating sites global with 1,000 brand new ones showing up each year. I suggest you look for another opportunity where the number of competitors you can find is less than 10 if you check your market on Google and find numbers like these.
2. This business is affected with the ‘Facebook model’ startup issue.
Numerous online business offerings, like that one, require thousands or scores of existing users before brand brand new users and advertisers have an interest to cover money that is real. Thus, the investment in money and time needed before payback is huge. Facebook spent $150 million before good cashflow.
3. Obstacles to entry are hard to establish.
For a fresh startup, the way that is best to make sure success would be to file patents or any other intellectual property to help keep future rivals from copying your success. Dating just isn’t a highly clinical process, therefore the first-mover benefit had been taken. Look at this challenge for the idea that is best.
4. Separation from current businesses that are major tiny. Continue reading 8 Reasons Online Dating Sites Are A Definite Business Dead End