Thoughts about investing (time and money) in the dating market
Thoughts about investing in the dating market
As the market has recovered into pre-depression levels, I will be biding my time for my war-chest to recover while looking for undervalued opportunities. Due to the influx of marriage and child birthing propaganda from fellow peers on my Facebook feed, Fear Of Missing Out (FOMO) sets in. As I re-balance my priorities from the financial markets to the dating market, here is a recount of the research I have done based on scuttlebutt analysis of the dating market.
One unique trait about competent investors is that due to the emphasis of staying objective and be non emotional, competency in investments prowess and dating prowess could be mutually exclusive. Tree of prosperity (Chris Ng) notably has an unique take on relationship advice especially on Tinder and the government supported SDU. Due to professional and personal interest in this area, I will be venturing on fundamental analysis of the dating market, and prospect on whether there is relationship building and investment related opportunities in this under-covered area. This post does not constitute as dating and financial advice, and readers are expected to do their due diligence before proceeding.
Problem : The traditional dating market is predominantly an Over The Counter Market and pretty much based on luck and affinity. It has a poorly run business model despite its social and emotional importance.
1) There must be mutual attraction in the physical appearance of the counter-party.
=> Not all people put on their best appearances all the time.
=> Some parties might have specifications about the quantitative measures about their counter-party (Above a certain height, weight and figure, facial features, skin color)
2) There must be a common experience and time shared between both counter-parties, whereby both parties can genuinely known each other.
=> Per my scuttlebutt analysis, most relationships from my peers are developed in their schooling years .
=> Counter-intuitively, due to the immense pressure put on students to ace their grades, traditional Asian values general frown upon development of romances in their schooling years.
=> Illogically, Asian families expect a 180 degree turnaround in their children's behavior in their adult / university years to actively search for appropriate counter-parties. For those whom missed the boat, opportunity does not ring twice.
3) Both parties need to signal to the counter-party their interest in matching. The counter-party must understand and receive the green light to proceed.
=> Figuring out what a girl thinks is harder than figuring out the management decisions of SGX listed companies. There is no (relationship / earnings) guidance on how to proceed.
4) The matchmaker may not be acting in the best interests of the participants.
=> Some people may be gold diggers or have a mismatch in intrinsic values. There is significant time between matching and settlement finality. Matching is not binding and there is significant counter-party risk, and each counter-party can withdraw their instruction and interest before settlement finality (settling down).
=> External influences such as matchmakers does not have a fiduciary duty. They might not be acting in your best interests to find the appropriate counter-party. They have conflict of interest to fulfill the government quota to increase the birth rate (SDU), or increase the commission earned from hosting dating events. This presents direct conflict in protecting the guys' financial well being or the ladies' emotional well being.
Solution : As a poorly run business model, there is an influx of dating apps that can counteract the problems with traditional matching.
1) Both parties can indicate their matching criteria for their counter-party.
=> Both parties can 24/7 put on their Sunday best, which may best fit what they look best.
This will improve the success rate of mutual attraction in the physical appearance of the counter-party.
2) Sharing of photos and experiences with the counter-party
=> Both ends can share common experience, hobbies and topics to relate to the other half.
3) As willing and able participants in the dating platform, both counter-parties have implicitly expressed their content in the dating market.
=> One party is willing to receive, the other is willing to deliver.
=> If there is matching by both parties swiping right, the hit rate is better than blind guessing the counter-party intentions.
4) The matchmaker will be acting in the best interests of the participants
=> Matching apps are non commissioned when searching for their counter-parties. It is equitable to free to play users as well as Pay to win users.
=> Pay to win users can opt for a paywall package through Tinder Plus to improve their hit rate. Features like Unlimited Right Swipes, Skip the line, Control who you see, Super Likes, Ability to see who actually likes you, Rewind last swipe, Hide ads, literally cost nothing for Tinder to implement, but adds value to time sensitive participants whom desires instant gratification.
=> As participants are willing and able to pay irrational amounts for irrational needs, it creates a high profit margin business whereby network externalities are key to grow the ever increasing ecosystem. One whom targets the right market segment and capture significant market share can enjoy network externalities.
SWOT analysis
Compared to the craze in the Fintech and social media platforms, Dating platforms can be immensely profitable and enjoy high profit margins.
Statistical studies have shown wide adoption of such social media platforms, with plenty of room to grow as the human population increase.
There is significant reputational risk in the branding of each company as well as target market segment . In Singapore, Tinder has a more sleazy reputation while Coffee meet Bagel gives empowerment and choice advantages to the female counterpart.
Major players in the Dating Market
Tinder Dominant strategy
1) Through checking out various counter-parties as well as competition from the same gender, there is immense competition by guys and ladies in flexing their physical assets (figures) and also their financial assets (Net worth). (Cars, luxurious dream lifestyle and clothing, glamorous holidays).
2) The focus on Tinder is for mass quick swipes based on solely physical appearances.
Due to the market segment it is perceived to be targeting, there could be a trend towards pump and dump as well as high turnover schemes instead of long term ownership interests in the counter-party.
3) Based on statistical studies and scuttlebutt analysis
The average female is bombarded by massive amount of likes leading to decision fatigue
Immense effort has to be made to figure out whether the guy has ulterior motives and what is the appropriate plan for him, and swipe right / left based on judgement calls.
There is a noticeably amount of girls whom use Tinder for personal affirmation, increased Instagram followers and instant gratification about her self worth rather than any serious attempt to find an appropriate counter-party.
For the average male, due to the (just swipe right) behavior of his competition, the photograph / physical appearance must be especially striking.
Tacit or explicit flexing of upper body muscles and abs is widely utilized in beach shots as well as gyming or climbing related photography.
The widespread usage of cute cats and dogs in photos (probably borrowed from a neighbor) is as widespread as the black plague.
Coffee and Bagel Dominant strategy
1) Through checking out tips and direction of Coffee and Bagel, there is less emphasis on the flaunting of physical assets and more emphasis on the spiritual and intrinsic value of the counter-party. There are more stringent matching criteria and emphasis on narrative text merely than judging a book by its cover.
2) The perceived focus on CAB is for selective and limited amount of swipes by the male. Females have more empowerment and number of choices to accept or reject requests.
The branding and target market segment perceived by participants, is for the development of long term relationships.
3) Based on statistical studies and scuttlebutt analysis
The average female has possibly less likes,but popular ones still has to tackle decision fatigue
The female is less burdened by decision fatigue and have more latitude in her choices.
Instant gratification and mass matching is NOT a plus point of CAB. Still, the female can invest less time in sieving out the wheat from the chaff, and simply use the lunch bagel function and waste less time on seemingly unlimited suitors.
For the average male, as the competition cannot simply swipe right
The male is forced to be extremely selective on the limited letters of interest he can release, unless he utilities multiple accounts.
The photograph / physical appearance must be especially striking. More effort has to be spent on crafting a good biography and narrative to find a matching counter-party.
Conclusion
Navigating the dating market could be more complex than the stock market. With the stock market, there will be auditors checking on the validity of the claims. Financial ratios cannot be blatantly made up and window dressing of accounts is illegal. The stock market is heavily regulated and there will be hefty penalties for those whom breach the regulations.
In the dating market, latent interest of counter-parties are concealed and claims could not be easily verified. Due to photo-shop and warpaint / makeup by both counter-parties, strategic figures and ratios could be concealed, or even pumped up. As all is fair in love and war, the dating market adopts laissez-faire management (Thankfully!) and there is plenty of hidden rules as well as opportunities.
Sticking to my circle of competence, I will be continuing my prospecting in the dating industry to attempt to score for an appropriate candidate in my personal life as well as investment portfolio. Match Group is an interesting candidate for my investment portfolio. The dating landscape is changing and interesting opportunities await!
As the market has recovered into pre-depression levels, I will be biding my time for my war-chest to recover while looking for undervalued opportunities. Due to the influx of marriage and child birthing propaganda from fellow peers on my Facebook feed, Fear Of Missing Out (FOMO) sets in. As I re-balance my priorities from the financial markets to the dating market, here is a recount of the research I have done based on scuttlebutt analysis of the dating market.
One unique trait about competent investors is that due to the emphasis of staying objective and be non emotional, competency in investments prowess and dating prowess could be mutually exclusive. Tree of prosperity (Chris Ng) notably has an unique take on relationship advice especially on Tinder and the government supported SDU. Due to professional and personal interest in this area, I will be venturing on fundamental analysis of the dating market, and prospect on whether there is relationship building and investment related opportunities in this under-covered area. This post does not constitute as dating and financial advice, and readers are expected to do their due diligence before proceeding.
Problem : The traditional dating market is predominantly an Over The Counter Market and pretty much based on luck and affinity. It has a poorly run business model despite its social and emotional importance.
1) There must be mutual attraction in the physical appearance of the counter-party.
=> Not all people put on their best appearances all the time.
=> Some parties might have specifications about the quantitative measures about their counter-party (Above a certain height, weight and figure, facial features, skin color)
2) There must be a common experience and time shared between both counter-parties, whereby both parties can genuinely known each other.
=> Per my scuttlebutt analysis, most relationships from my peers are developed in their schooling years .
=> Counter-intuitively, due to the immense pressure put on students to ace their grades, traditional Asian values general frown upon development of romances in their schooling years.
=> Illogically, Asian families expect a 180 degree turnaround in their children's behavior in their adult / university years to actively search for appropriate counter-parties. For those whom missed the boat, opportunity does not ring twice.
3) Both parties need to signal to the counter-party their interest in matching. The counter-party must understand and receive the green light to proceed.
=> Figuring out what a girl thinks is harder than figuring out the management decisions of SGX listed companies. There is no (relationship / earnings) guidance on how to proceed.
4) The matchmaker may not be acting in the best interests of the participants.
=> Some people may be gold diggers or have a mismatch in intrinsic values. There is significant time between matching and settlement finality. Matching is not binding and there is significant counter-party risk, and each counter-party can withdraw their instruction and interest before settlement finality (settling down).
=> External influences such as matchmakers does not have a fiduciary duty. They might not be acting in your best interests to find the appropriate counter-party. They have conflict of interest to fulfill the government quota to increase the birth rate (SDU), or increase the commission earned from hosting dating events. This presents direct conflict in protecting the guys' financial well being or the ladies' emotional well being.
Solution : As a poorly run business model, there is an influx of dating apps that can counteract the problems with traditional matching.
1) Both parties can indicate their matching criteria for their counter-party.
=> Both parties can 24/7 put on their Sunday best, which may best fit what they look best.
This will improve the success rate of mutual attraction in the physical appearance of the counter-party.
2) Sharing of photos and experiences with the counter-party
=> Both ends can share common experience, hobbies and topics to relate to the other half.
3) As willing and able participants in the dating platform, both counter-parties have implicitly expressed their content in the dating market.
=> One party is willing to receive, the other is willing to deliver.
=> If there is matching by both parties swiping right, the hit rate is better than blind guessing the counter-party intentions.
4) The matchmaker will be acting in the best interests of the participants
=> Matching apps are non commissioned when searching for their counter-parties. It is equitable to free to play users as well as Pay to win users.
=> Pay to win users can opt for a paywall package through Tinder Plus to improve their hit rate. Features like Unlimited Right Swipes, Skip the line, Control who you see, Super Likes, Ability to see who actually likes you, Rewind last swipe, Hide ads, literally cost nothing for Tinder to implement, but adds value to time sensitive participants whom desires instant gratification.
=> As participants are willing and able to pay irrational amounts for irrational needs, it creates a high profit margin business whereby network externalities are key to grow the ever increasing ecosystem. One whom targets the right market segment and capture significant market share can enjoy network externalities.
SWOT analysis
Compared to the craze in the Fintech and social media platforms, Dating platforms can be immensely profitable and enjoy high profit margins.
Statistical studies have shown wide adoption of such social media platforms, with plenty of room to grow as the human population increase.
There is significant reputational risk in the branding of each company as well as target market segment . In Singapore, Tinder has a more sleazy reputation while Coffee meet Bagel gives empowerment and choice advantages to the female counterpart.
Major players in the Dating Market
Tinder Dominant strategy
1) Through checking out various counter-parties as well as competition from the same gender, there is immense competition by guys and ladies in flexing their physical assets (figures) and also their financial assets (Net worth). (Cars, luxurious dream lifestyle and clothing, glamorous holidays).
2) The focus on Tinder is for mass quick swipes based on solely physical appearances.
Due to the market segment it is perceived to be targeting, there could be a trend towards pump and dump as well as high turnover schemes instead of long term ownership interests in the counter-party.
3) Based on statistical studies and scuttlebutt analysis
The average female is bombarded by massive amount of likes leading to decision fatigue
Immense effort has to be made to figure out whether the guy has ulterior motives and what is the appropriate plan for him, and swipe right / left based on judgement calls.
There is a noticeably amount of girls whom use Tinder for personal affirmation, increased Instagram followers and instant gratification about her self worth rather than any serious attempt to find an appropriate counter-party.
For the average male, due to the (just swipe right) behavior of his competition, the photograph / physical appearance must be especially striking.
Tacit or explicit flexing of upper body muscles and abs is widely utilized in beach shots as well as gyming or climbing related photography.
The widespread usage of cute cats and dogs in photos (probably borrowed from a neighbor) is as widespread as the black plague.
Coffee and Bagel Dominant strategy
1) Through checking out tips and direction of Coffee and Bagel, there is less emphasis on the flaunting of physical assets and more emphasis on the spiritual and intrinsic value of the counter-party. There are more stringent matching criteria and emphasis on narrative text merely than judging a book by its cover.
2) The perceived focus on CAB is for selective and limited amount of swipes by the male. Females have more empowerment and number of choices to accept or reject requests.
The branding and target market segment perceived by participants, is for the development of long term relationships.
3) Based on statistical studies and scuttlebutt analysis
The average female has possibly less likes,but popular ones still has to tackle decision fatigue
The female is less burdened by decision fatigue and have more latitude in her choices.
Instant gratification and mass matching is NOT a plus point of CAB. Still, the female can invest less time in sieving out the wheat from the chaff, and simply use the lunch bagel function and waste less time on seemingly unlimited suitors.
For the average male, as the competition cannot simply swipe right
The male is forced to be extremely selective on the limited letters of interest he can release, unless he utilities multiple accounts.
The photograph / physical appearance must be especially striking. More effort has to be spent on crafting a good biography and narrative to find a matching counter-party.
Conclusion
Navigating the dating market could be more complex than the stock market. With the stock market, there will be auditors checking on the validity of the claims. Financial ratios cannot be blatantly made up and window dressing of accounts is illegal. The stock market is heavily regulated and there will be hefty penalties for those whom breach the regulations.
In the dating market, latent interest of counter-parties are concealed and claims could not be easily verified. Due to photo-shop and warpaint / makeup by both counter-parties, strategic figures and ratios could be concealed, or even pumped up. As all is fair in love and war, the dating market adopts laissez-faire management (Thankfully!) and there is plenty of hidden rules as well as opportunities.
Sticking to my circle of competence, I will be continuing my prospecting in the dating industry to attempt to score for an appropriate candidate in my personal life as well as investment portfolio. Match Group is an interesting candidate for my investment portfolio. The dating landscape is changing and interesting opportunities await!
Hi INTJ,
ReplyDeleteI felt that dating apps are mostly for those who are looking for flings, and it is indeed hard to verify hidden agendas or marital status. I have friends who encountered married counter-parties there.
Have you personally tried the apps? How do you find it?
Hi RC
DeleteI experimented with Coffee Meet Bagel, OKCupid and Tinder. To be frank it is more about branding of each app that attracts the type of users and intentions communicated.
Brands like CMB are more towards giving women the ability to accept / reject, Tinder focus exclusively on physical appearances, and OKCupid has detailed personality tests to identify the intentions and personality of both counterparties.
Negative social norms about online dating are hard to change. In any social setting there will be people with different intentions. Nonetheless, they solve a real social need and I have person all known people getting married after meeting and dating on the app!