Looks like snap is making some money but compared to the traffic they have and ads it doesn’t amount to much.
Snap has 1.4 Million visits a day and made $533,000 in 3 months, that works out to .4 Cents a visit. Once they introduced all these paying features and multiple banner ads etc it increased to .6 cents a visit.
Eharmony makes about 75M a quarter on 52 million visits, that works out to $1.45 a visit. Even if i’m off by 50 cents its still 200 times as much revenue per visit as snap.
The problem with free is that every time you double the size of your database the cost of maintaining the site grows 6 fold. I really underestimated how much resources it would take, I have one database table now that exceeds 3 billion records. The bigger you get as a free site the less money you make per visit and the more it costs to service a visit.
We are going to start introducing some products and features to try and get some of the 10 to 20 million dollars a month my users are spending elsewhere. There is really no money in being free and we have to start experimenting with other models now or we won’t be able to compete in 3 or 4 years.