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Christoph Janz, a venture capitalist and initial investor in Zendesk wrote a great essay on this topic, called Five ways to build a 0M business that talks about market size as an issue for this.

Ever gone on a date and thought, "Jesus that was awful, if only I could have known how dull/irritating/rude/doesn't-look-one-bit-like-his-photos this guy was going to be"? Even in the age of intense social media stalking and absolute transparency, it's still absolutely possible that you'll end up going on a date with someone you meet on a dating app and be totally shocked to find out what they're really like.

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So what do the churn rates look like for a dating product? Let’s calculate that: 20% monthly churn = 1-(1-0.2)^12 = 93% annual churn You read that right.

Another way to say this is the dating has “intent” the same way that shopping might, especially when you are talking about a paid subscription service.

This limits the market size as well as restricting the types of marketing channels you can use to read those consumers.

A similar challenge is that these products aren’t “social” in the same way that Skype or Facebook might be.

Although the stigma is quickly passing, it’s not like consumers want to sign up for a dating site and then invite their friends family to join them on the site.

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