Aspiring entrepreneurs often approach me personally as an angel investor, touting their revolutionary concept for still another online site that is dating. We agree the requirement exists, with more than 91 million singles that are interested the chronilogical age of 19 and 45 across the world. Yet very little one in e-commerce makes hardly any money, I see since it comes with a larger list of challenges than most other opportunities.
Hence, we encourage you to definitely examine these challenges as truth checks on your own company concept — dating or elsewhere — before spending your entire some time some body else’s cash in vain.
1. Industry is oversaturated with rivals.
Relating to data, there are many than 5,000 online dating sites global with 1,000 brand brand new people showing up on a yearly basis. I suggest you look for another opportunity where the number of competitors you can find is less than 10 if you check your market on Google and find numbers like these.
2. This company is suffering from the ‘Facebook model’ startup issue.
Many online business offerings, like that one, require thousands or an incredible number of current users before brand new users and advertisers have an interest to cover money that is real. Hence, the investment in money and time needed before payback is huge. Facebook invested $150 million before good cashflow.