We are monetizing in 52 countries right now with the service localized in 20 languages.
The second thing that sets us apart is that we approach dating from a different perspective.
While the gaming industry has adopted a hybrid virtual currency slash subscription model for a long time, this is the first time that we are doing it in a dating context, which helps us to maximize customer value by offering services in a la carte fashion, with coins in addition to subscription. 2007, and we launched the product in December 2007, and so far we have raised $40 million from investors like ATA Ventures, Canaan Partners, Bessemer, and Amidzad Ventures. SZ: Ninety percent of our users are younger than 40 years old, 65% are younger than 30 years old.
This is very different from the normal 38-50 years sweet spot for most traditional sites in the dating industry.
Since the summer of 2009, we started adding a lot more product features for users who want to use the virtual currency and that’s when the virtual currency became a more-meaningful part of our revenue.
Even our subscribers use virtual currency, so it’s not a mutually exclusive universe.
We are present on all of the major social networks; we have our destination site on Zoosk.com; we have our mobile Web property, and an i Phone application, and we have a desktop client.
From an investor’s perspective, Zoosk is interesting in a few ways.AB: What is conversion rate from free users to paying subscribers and those paying for virtual currency?SZ: We’re in double digits, percentage-wise for subscription and obviously the volume on the virtual currency transactions are much higher than subscription because of repeat purchases.AB: You mentioned that the social networks have helped you a lot in terms of distribution.Is that the primary user acquisition channel or do you also use other online or offline campaigns for user acquisition?And that is a function of two things (a) our positioning, and (b) our acquisition channels.