Every time a dating site succeeds in making a match, it loses two users. To offset churn, Zoosk tells me that tomorrow it’s announcing a new business model that complements subscriptions with date discounts, expert relationship advice, gift ideas, holiday reminders and online scrapbooks. The products could convince users to pay even after they’ve found their sweethearts. If users fall in love with the new revenue streams, the whole dating industry could start courting happy couples.
Zoosk now has 15 million monthly active users across its site, mobile, and Facebook app. It also has a $90 million annual sales run rate, up from $20 million in 2009. Still, it’s had to raise $40.5 million to buy ads and failed dating sites so it could replace the users who canceled their subscriptions once they’ve found a mate. Most users don’t want to look like losers by sharing their Zoosk activity on Facebook or Twitter, so the service misses out on the organic virality enjoyed in other verticals.