I think that online dating will remain prevalent in the future, but I also wonder if The League is doing enough to differentiate itself from a growing number of apps. Thanks for sharing the post. The better the League is at the job-to-be-done helping people find relationships , the less valuable its platform becomes. The company essentially has to constantly refill its marketing funnel in order to replace the users that leave the platform. The company must ensure that it attracts younger generations to the platform in order to refill the funnel.
And it must ensure that the League stays relevant in a competitive space. Great post! Beyond the conflict of business model of a dating app mentioned in the comments above, I would also love to learn how does the premium fee work for this business. Given highly competitive space, lack of loyalty and high multi-homing, are there actually people willing to pay for it? Maybe, The League could differentiate by offering exclusive services for free to make people come back on it again and again?
I find the niche market they chose to focus on, high flying achievers , an interesting choice in terms of willingness to pay. Is there any data on a higher WTP from this segment? Or a higher conversion from the freemium model to the paid one? I would guess that was the founders hypothesis, but curious to see if data backs this up.
A little late to the party, but great post! I wonder about ways that The League can reduce disintermediation. How effective is their messaging platform? Is it good enough to be an alternative to text messaging? A notable weakness of GroupMe is the inability to call through the app, and that tends to cause disintermediation.
I wonder if The League could mitigate this risk through better integration. From a BSSE standpoint, the league seems to have crafted some sort of new market disruption, with arguably more valuable users, despite the disintermediation issue. My thesis is as follows : disintermediation is bound to happen, so the focus should be on maximising user LTV; while premium accounts do help, the bulk of revenues must come from ads.
On the League, users are being vetted — hence ads can be sold as higher quality and conversion rates are likely increased since profiles would be more complete and show more data points. While targeting a niche market bears with it some limitations, the aspirational aspect of it coupled with the exclusivity might end up drawing more users and attention. My questions revolve around their current business model and if they can sustain on fees from premium profiles alone.
Are there any in-app ads or do they capture any value from the events and activities they facilitate? Thanks for sharing! If anything, it might increase it. If I am recently single and have to wait X weeks to gain access to an app, I am likely to download and use other apps in the meantime. Furthermore, I think showing a limited number of individuals might contribute to multi-homing.
You must be logged in to post a comment. Register for an account. Skip to content. The HBS Digital Initiative brings together perspectives across disciplines to help people understand how technology is transforming organizations and the greater world. Want to learn more about digital transformation? Assignment: Growing Businesses in the…. Source: The League , Company Website Key Challenges: The primary challenge dating platforms face as a business model is that the inherent goal of the service is for users to ultimately disintermediate and date each other.
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