In terms of our own business, we wanted to find out Tinder has been successful as free application. Looking into their business model, they have used a freemium business model. This meant that the initial download is free, known as Tinder Basic, which allows consumers to network for free. The premium element, Tinder Plus, requires a monthly fee which allows access to further benefits through added features. The other way tinder makes money is through advertisements in the form of profiles on the app.
Three things that are significantly important to the success of the Tinder business model is the free install, the swipe function and the co-branding element with facebook for added security.
- The free install allowed a multitude of consumers to interact with each other in an easily accessible way. Once Tinder had grown its databases, increased exposure and established customer loyalty, it was able to deliver a successful service and offer extensive benefits (at a price).
- Tinders USP (unique selling point) is their swipe feature and ability to connect users with strangers they otherwise wouldn’t have met. This feature is essential to the user experience and convenience of using the app. It ultimately contributes to todays demand for instant results (see now buy now, what what you want when you want it).
- The ability for Tinder to co-brand with Facebook, ensured security and safety through association of an already existing and reliable social media platform.
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