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Written by: Natalie Fell
Natalie is a business writer with experience in operations, HR, and training & development within the software, healthcare, and financial services sectors.
Edited by: David Lepeska
David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.
Published on May 17, 2022
Updated on July 2, 2024
Investment range
$1,650 - $8,000
Revenue potential
$63,000 - $126,000 p.a.
Time to build
0 - 3 months
Profit potential
$57,000 - $94,000 p.a.
Industry trend
Growing
Commitment
Flexible
Here are the most important factors to consider when starting your dating service:
You May Also Wonder:
Is a dating service profitable?
Yes, dating services can be extremely profitable. However, it’s important to spend time differentiating yourself from the competition. Consider focusing on a specific niche market to see the most success.
Do I need any special certifications to get started?
No specific certification is required to start a dating service. However, if you are interested in offering dating coaching services, you may consider enrolling in programs offered by the Matchmaking Institute.
How can I offer a safe dating service?
To offer a safe dating service, prioritize user safety by implementing verification processes, moderating user profiles, protecting privacy, and providing reporting and blocking features. Educate users about online dating safety and provide resources to help them make informed decisions.
How do I attract a diverse and engaged user base to my dating platform?
To attract a diverse and engaged user base to your dating platform, use targeted marketing for specific demographics and create an appealing, easy-to-navigate site. Encourage interaction through chats and interest groups, promote inclusivity, and partner with influencers to broaden your reach.
What risks are there when using online dating services?
Risks associated with using online dating services include encountering fake profiles or scams, potential privacy breaches, and meeting individuals with dishonest intentions.
What are the different monetization strategies for a dating service?
Monetization strategies for a dating service can include subscription plans with different levels of access or features, offering premium add-ons or virtual gifts, displaying targeted advertisements, partnering with related businesses for promotional collaborations or sponsored content, or organizing paid events or dating experiences.
It’s a good idea to weigh the pros and cons of starting a dating service before deciding whether to go all in:
Trends in the dating services industry include
Challenges in the dating services industry include
Here are the percentages of online dating service or app users by age range. (2020)
Starting a dating service costs anywhere from $1,600 to $8,000. How much you spend will depend on the software and marketing budget. To compete with established players like Match.com and eHarmony, it’s important to spend on smart marketing to stand out from the competition.
To learn how to build and grow a successful dating service, websites like Udemy offer affordable online courses.
You’ll need a handful of items to successfully launch your dating service, including:
| Start-up Costs | Ballpark Range | Average |
|---|---|---|
| Licenses and permits | $100-$300 | $200 |
| Insurance | $100-$300 | $200 |
| Marketing and advertising | $1000-$5000 | $3,000 |
| Website | $150-$400 | $275 |
| Dating Services Software | $100-$1000 | $550 |
| Office Equipment | $200-$1000 | $600 |
| Total | $1,650 - $8,000 | $4,825 |
Dating service membership usually costs around $35 per month. If you offer coaching sessions or in-person events, you may be able to charge more. Most of your ongoing expenses will be related to marketing and technology, so expect around a 90% profit margin.
In your first year or two, your marketing efforts could generate 150 subscribers. At $35 each every month, this would mean $63,000 in annual revenue and a profit of about $57,000, assuming that 90% margin. As you build a reputation and gain referrals, you’ll likely need to hire staff, lowering your margin to around 75%. But with 300 subscribers you could expect annual revenue of $126,000 and an impressive profit of $94,000.
One of the biggest challenges in the dating services industry is competition. Most of the market share is held by large companies, like Bumble, Match.com and Tinder.
Step by Step Business values real-life experience above all. Through our Entrepreneur Spotlight Series, we interview business leaders from diverse industries, providing readers with firsthand insights.
Explore Eric Leonhard’s innovative journey in modern dating coaching, from its challenges to triumphs.
Now that you know what’s involved in starting a dating service, it’s a good idea to hone your concept in preparation to enter a competitive market.
Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.
Research dating services online and in your area to examine their services, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a dating service for the LGBT community or divorcees.
You might consider targeting a niche market by specializing in a certain aspect of your industry, such as a dating site specific to your city or for people with a certain interest, such as RVs or with children.
Read how Sam Moorcroft found a niche in Christian dating and gain valuable insights into this faith-based matchmaking platform.
When it comes to your dating service’s offerings, you have several options. You could offer all of the below, a combination, or just choose to focus on one.
The average cost of a monthly membership on today’s popular dating websites and apps is $40. The amount you charge will depend on your offerings and subscriptions and other features. After factoring in technology and marketing costs, you should expect a profit margin of around 90%.
Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.
Your customers will be singles looking for a partner. This demographic is extremely varied, so it’s important to hone in on a specific niche. Decide on your audience first, as that will drive how you’ll find them. For example, if you’d like to work with older adult daters, chances are they’re on Facebook. Younger daters between the ages of 25 and 35 are more likely to hang out on social media platforms like TikTok and Instagram.
In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out an office. You can find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.
When choosing a commercial space, you may want to follow these rules of thumb:
Here are some ideas for brainstorming your business name:
Discover over 230 unique dating service business name ideas here. If you want your business name to include specific keywords, you can also use our dating service name generator. Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.
Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.
Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.
Here are the key components of a business plan:
If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.
Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.
Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!
Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to dating services.
If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.
Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your dating service will shape your taxes, personal liability, and business registration requirements, so choose wisely.
Here are the main options:
We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.
Choose Your State
The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.
Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.
The IRS website also offers a tax-payers checklist, and taxes can be filed online.
It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.
Securing financing is your next step and there are plenty of ways to raise capital:
Bank and SBA loans are probably the best option, other than friends and family, for funding a dating service. You might also try crowdfunding if you have an innovative concept.
Starting a dating service requires obtaining a number of licenses and permits from local, state, and federal governments.
Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.
You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.
You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.
This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.
If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.
Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.
Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your dating service as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.
Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.
Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.
Here are some types of insurance to consider:
As opening day nears, prepare for launch by reviewing and improving some key elements of your business.
Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.
You may want to use industry-specific software, such as WPDating, SkaDate, or iDateMedia to manage memberships, accept payments, and develop a dating app.
Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.
You can create your own website using website builders. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.
They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google.
Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your dating service meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.
Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your dating service could be:
You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a dating website, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in the online dating industry for years and can offer invaluable insight and industry connections.
The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in dating services. You’ll probably generate new customers or find companies with which you could establish a partnership. You might also consider affiliate marketing as a way to build relationships with potential partners and boost business.
If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a dating service include:
At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.
Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.
App dating has skyrocketed over the last decade, and it’s only continuing to grow. People of all ages and interests will always be searching for their better half, which means there’s great opportunity in this market. With your own dating service, you could help people meet their true love while carving out your own piece of the lucrative dating industry pie.
Now that you’ve done your homework, it’s time to put on your matchmaking hat and create your dream business!
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