
J-LO may not be the go-to source of information when it comes to the world of digital media, but in this case her song lyrics are right on the money (or rather, lack of it). According to a recent post by way of tech crunch, free online dating sites may soon give their paid counterparts a run for their money. (Ok no more bad puns...)
The full article can be found here, but to quickly recap:
-IAC, which owns and operates popular paid dating sites Match.com
and Chemistry.com
, launched a completely free dating site called DownToEarth.com
-The somewhat counterintuitive move is IAC/Match.com's answer to Plentyoffish.com
, an incredibly popular dating site run by one man
out of his apartment.
-IAC believes if someone is going to put Match out of business, it might as well be Match.
This situation seems to be indicating that content providers are quickly starting to understand that the "Freemium" model is very much becoming a reality, especially when it comes to the social networking space. Some of the most popular social networking sites such as Facebook, MySpace, Twitter, LinkedIn, etc are built around free access with monetization coming mainly from premium features.
Although the end goal of users wish to have on a dating site is different from other "traditional" social networks, the experience is still very similar. Users are being conditioned to message, view profiles, and chat on social networks (all for free) and having to pay for such activities on dating sites is clearly becoming an obstacle for consumers of these types of sites. It's obvious that these services can be provided for free, and as more of the target audience starts to realize this, the more important it will be for companies like IAC to come out as the BEST free resource for this niche social network.
IAC is showing a great deal of foresight here by leveraging its current infrastructure and use base towards pushing its own free version to the top of the charts. (with a strong advertising support model of course). There's no doubt they will try to milk the paid model for as long as they can, but building a safety net of sorts in the form of DownToEarth.com is a smart move.
In terms of other brands that are seeking to enter, or maintain their foothold in the social networking environment its important to remember that the above psychology is going to apply to many situations. Let's say you're a brand that is offering desired content. Perhaps it doesn't cost the audience any actual money, but if they are being advertised to, or somehow being asked to engage a brand, then in effect they are somehow paying for what they are getting. That being the case, the question that needs to then be asked is, can that audience go somewhere else to get the same content for free without the clutter of advertising intrusion?
Does the above point mean that all cobranded efforts are a waste of money? Not at all. However it needs to be understood that the brand, product, messaging needs to tie into the content or services in a way that enhance the original iteration. If you plan on competing with "free" you need to bring to make sure the customer is getting value from your intrusion so they look to your brand for content and not the countless other resources on the net.