Fool.com Tells Eharmony to convert to free.

http://www.fool.com/investing/general/2007/09/18/cupid-can-be-stupid.aspx

interesting article,   but in order  for eharmony to Make $200 million dollars a year in advertising revenue as a free site  its got to be 2 times the size of Facebook.com  and have 10 times as many pageviews as the entire dating industry combined does.

Facebook is close to 2 billion pageviews per day  and on course for 100 Million in revenues this year.     Eharmony supposidly makes $200 million year on 13 million pageviews per day.     As you can see from eharmony’s tech spending and Americansingles  Public filings if they converted to free those sites wouldn’t even be able to pay for thier existing tech costs.

12 Responses to “Fool.com Tells Eharmony to convert to free.”

  1. Shawn Says:

    Markus,

    Facebook has initially launched their version of Flyers Pro, their ppc advertising program. Facebook will be able to generate ALOT more than $100 million/annually if they turn Flyers Pro into a quality ppc advertising destination for marketers.

    With the exposure facebook has, they can become a competitor to google adwords, yahoo search marketing, etc. and with a proper ppc advertising platform (if they build it right) facebook becomes alot more than alot of impressiones – they become an advertising medium.

    I would suspect dating communities may want to look at the same path to drive more ad dollars. Advertisers will only buy high cpms for so long, but offer traffic at a ppc level, and let the market dictate how much your impressions are worth.

  2. Markus Says:

    Shawn, Google gets 140 clicks per 1000 page impressions. Facebook gets 1 click for every 10,000 page impressions. There is several orders of magnitude difference and facebook will never be on the same level as google or yahoo. Last I heard facebook is getting around 200,000 clicks a day. Assuming someone is crazy enough to pay 50 cents a click that is only $37 million a year in revenues.

  3. Shawn Says:

    Markus, I agree with some of what you said, facebook will never be able to squeeze the same revenue per impression as google, facebook isn’t a search engine, however, as they learn to better target ads, and acquire advertisers to place those ads, they will be able to drive more clicks/impressions. Currently, their placment of ads, and selection of ppc ads is primitive. As they evolve their platform, this will improve and easily eclipse what they generate thru cpm buys.

  4. Marc Says:

    I agree with you response to Shawn, Markus. My question is: Where did you get the info Facebook is pulling $100 million a year? That number sounds much bigger than I think they are capable of. In some sense, I think FB has the problems eHarmony would have if they converted to free. I’m out of the loop, but I suspect FB will have one hell of time just becoming profitable. In fact I don’t think they can pull it off without killing their growth and driving off a lot of their current user base.

  5. Marc Says:

    One other thing, I think this whole platform thing is a sham. I think Myspace got it right the first time (by mistake of course) Widgets freeforall on the net that can be platered anywhere. I’ll hearken back to Tim O’Reilly’s words of a few years ago… The INTERNET is the platform! I think FB and closed platform promoters will discover that soon enough. They don’t realize they are on the wrong side of fundamental market principles.

  6. Slinky Says:

    I think with a product as addictive as FB, it is only a matter of time before it eclipses most in rev$ – other than Google. As people work harder and longer – and socialize less – the need to stay in touch with friends will only grow.

  7. Carlos Says:

    I am also not a big beleiver in this whole SocialOS thing but I do see some value in having everything aggregated into one place and the only thing that the Facebook platform can provide that other frameworks can’t, is programming access to a large social graph so it becomes a lot easier to get the viral effect going on apps. The UI is also very nice and polished.

  8. Ken Says:

    One of the things that makes EHarmony work (I am a success story) is that those who are not serious about finding long-term relationships are discouraged by the current expense of joining the site. If it were free to the user, there would be many, many more users who aren’t serious, thus wasting the time of people like me, who wanted to find a woman to marry.

  9. Mayo Says:

    LOL Ken,

    you can also be serious finding women to have sex with besides your wife… that does not change the picture…

    for me jerks that are willing to spend money are same as the jerks who are jerking for free.. they are just jerks (No offense to people who like jerking but are not jerks ;D)

  10. Startup News Says:

    Ehamony is very profitable …Why would they wan to be free
    $200M a year and $100M in Cash

    http://money.cnn.com/2007/09/14/magazines/fortune/fastforward_eharmony.fortune/?postversion=2007091413

  11. Tom Says:

    Markus,

    How can I email you to see about getting 3 profiles of mine that were accidentally deleted by PlentyOfFish restored?

    This is very important to me.

    And is that possible or are they literally gone for good (erased or destroyed forever by your computer system)?

    Sincerely,
    Tom

  12. Judith Rovelto Says:

    Have You Checked Your Bounce Rates Lately

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