All apps and companies

App · Social & Dating

Tinder

A dating app with tiered subscriptions plus boosts, Super Likes and other in-app purchases.

tinder.comApp Store11 sources47 tips
In short

Tinder grew to 30 to 40 million monthly actives before monetizing hard, then built a dedicated revenue team that tested tiers, pricing and paywalls constantly. A 2018 top-nav subscription test brought about $50 million, and an ML paywall adds multimillion-dollar annual revenue. Lesson: put paywalls in prime spots, tie them to one or two power features, and test real purchases. Cheap standalone features cannibalize subscriptions.

At a glanceTinder's paywall now shows each user one product
Static paywall (control)
  • Plus, Gold, Platinum side by side
  • Some bought Platinum, used Gold features
  • Others bought nothing: too many choices
Dynamic paywall (treatment)Won
  • ML predicts willingness to pay
  • Shows the single likeliest product
  • Tracks retention and repurchase too

Estimated multimillion-dollar annual revenue gain (predicted)

From Shawn Gong on Tinder's paywall

What was said about Tinder

1Paid features that let users break the rules of matching

  • Each paid feature lifts a built-in limit that slows matching. Tinder designed paid features as superpowers over the limits of free use, so paying speeds engagement up instead of slowing it down. Seeing who already swiped right on you shortens the time to a match.

    Every paid product aims at one of three jobs: faster matches, the right matches, or conversations with matches. In its fastest growth years this approach added more than $100M in revenue year over year.

  • Seeing who liked you is the most valuable feature because it ends blind swiping. It breaks the rule that you must swipe without knowing who is interested. Shown a person they passed on three weeks later, users are about 30% likely to change their mind.

    Timing and frame of mind change who you like, so resurfacing passed profiles recovers matches that would otherwise be missed.

  • Each tier promises a different outcome, not just more of the same. Plus lets you swipe more, Gold gets you more matches, and Platinum gets you into better conversations, including messaging someone before a match a limited number of times.

    Messaging before matching bent what had always been an "Ironclad rule" of Tinder. Gold was set apart from Plus by promising better matches, not only more swipes.

  • In-app purchases multiply subscription features instead of cannibalizing them. A Gold user who has gone through everyone who liked them buys a Boost to get more likes, or a Super Like for someone they really want. A Super Like makes the receiver three times more likely to swipe right.

    Big spenders add $50 to $100 in purchases on top of the subscription. Super Like and Boost drive much of the revenue, and the Super Like idea inspired Platinum's message-before-match feature.

  • The swipe limit protected the ecosystem and became a strong revenue lever. Tinder capped daily swipes because some users swiped through their whole city in a few sessions and auto swipers broke gameplay. The paywall improved the ecosystem and also monetized well.

    For network products, weigh the second order effect of each free feature and what share of users should get it.

2The dynamic paywall that shows each user one product

  • Users choose in seconds on feeling, so a wall of options backfired. Talking to users showed some bought Platinum only because it was the priciest while using just Gold features, and others bought nothing because there were too many choices.

    Tinder had assumed users would compare Plus, Gold and Platinum side by side across tiers, plans and à la carte items. They don't. Shawn Gong: "don't treat your users as they are logical human beings." Skylight saw the same top-tier buying with hardware buyers.

  • An ML model picks the one product each user is most likely to buy. Tinder replaced its static paywall with one that asks a willingness-to-pay model which product to surface per user. Tinder predicts a multimillion-dollar annual revenue gain from the test.

    No baseline or conversion figures are given. Gong: "customers don't need a lot of option they need the right one."

  • Start the model on a few paywalls against the old static one. Because training and testing a pricing model is slow and costly, Tinder began with a couple of features: control kept the deterministic paywall, treatment queried the model. Conversion and total revenue were measured.

    Tinder now compares several models against each other and against no model, and tracks retention and repurchase as required counter metrics, such as whether a former Plus buyer upsold to Platinum renews or cancels.

  • Without an ML team, three tiers still turn buy-or-not into which-one. Some pick the priciest, some the cheapest, and the unsure pick the middle. Gong calls the real unlock decision design, which any founder can copy.

3Unbundling Passport without cannibalizing Plus

  • Sell standalone the features whose need depends on the moment. Boost fits peak hours or too few likes, Super Likes depend on who is in the app, and Passport suits travel. Passport was sold for one day, three days or a week to non-subscribers, and its conversion "went crazy" at launch.

    Subscriptions stay easier to buy because a package renews automatically.

  • Standalone Passport ate Plus until Tinder raised its price. Some users bought only Passport instead of Plus. Raising the à la carte price cut cannibalization; conversion dipped a little but total revenue went up.

    Tinder raised the price a second time, until 7-day Passport cost the same as 7-day Plus so the subscription looked like the obvious deal.

  • Show the subscription first and the à la carte item as a second chance. Offering Passport and Plus side by side on the paywall still was not enough. The ML model now shows the subscription first, and only users who decline see the standalone offer.

4Tiers as packages for very different payers

  • Treat tiers as packages for customers who differ enormously. Jeff Morris's biggest unlock was designing packages that span a young, lower-income subscriber outside the US to a whale spending $50,000 a year.

    Tinder began with one tier, Plus, priced from a spreadsheet nobody was testing. Jeff thinks a $50 million ARR portfolio company with one tier and no pricing work could double revenue in a couple of sprints.

  • Localize prices by market, starting with your core markets. Tinder's pricing grid used many factors, geography first. Latin America and India, its fastest growing markets, had very different willingness to pay from North America or the UK.

    Pricing became a focus once the US saturated and those markets grew without monetizing well.

  • Interviewing whales overturned the team's guess about why they paid. A single-digit percent of users drove a large share of à la carte revenue, spending $200 to $300 versus about $30 average. The team assumed rich people flaunting money; they were military, sales and newly relocated people who compared the cost to dating.

    Spending a couple hundred dollars a month on Tinder looked small next to the cost of a few dates. The research led to Platinum, with bundled consumables, and a Super Like with a note priced higher than the team expected.

  • Other apps copy the tier and consumable pattern. Tolan modeled Light, Plus and Unlimited on Plus, Gold and Platinum, and some subscribers pay $200 a month. Tinder was an early non-gaming example of selling consumables on top of a subscription.

    35% of consumer subscription apps now offer lifetime plans and/or in-app purchases.

5Paywall placement and the revenue team

  • A throwaway top-nav paywall test made about $50 million. In 2018 Tinder tested a toggle in the top navbar opening a new subscription tier, as a small to medium A/B test the design team had not wanted. It generated about $50 million.

    Jeff admits a top-nav paywall might not convert as well in, say, a meditation app.

  • Every paid feature got its own paywall entry point, tracked daily. A dashboard showed clicks and conversion per entry point mapped to incremental subscription revenue. Features whose paywall didn't move the needle were made free.

    Low conversion can mean weak placement, so check placement first. Tinder never moved a feature from free to paid.

  • Two to three power features drove most paid conversion. Jeff saw a power law: a few features drive most new subscriptions, everything else is incremental.

    Start with one or two paid features, follow what power users ask for, and keep paid features scarce so they stay valuable.

  • Paywalls got real design work, but not too many of them. In 2017 Tinder spent a couple of days of engineering on a gold shimmer animation for a paywall.

    Paywalls that look PM-designed signal low quality, and too many paywalls make a mature product feel spammy.

  • Revenue grew into a dedicated team that tested instead of forecasting. The revenue team went from Jeff and about six engineers in 2016 to over 40, constantly testing tiers, localized pricing and entry points.

    Finance pressure created an Excel culture of forecasting everything; small roadmap items often worked big, so testing beat modeling.

6Tinder Select, the luxury tier that didn't fit

  • Whales' willingness to pay didn't make a luxury tier fit a mass-market brand. Select targeted big spenders at $499 a month, but buyers still saw ordinary people on the app, like an expensive table in a regular club. Tinder is gradually scaling it down.

    Gong says it was not a failure: Tinder learned what it set out to learn and has better bets. People don't always do what they say in surveys, so test with real purchases.

7When Tinder started charging

  • Tinder grew to 30 to 40 million monthly actives before monetizing. It earned almost nothing for its first three or four years and focused on monetization in years four or five, leaving a large pool of never-paid users.

    Jeff warns that fast early revenue from young cohorts can look like product-market fit when it isn't.

  • Ask for money only after a match and a conversation. Tinder waits until users believe in the product. A website builder that paywalled before delivering a working build drew Twitter complaints.

  • Dating success ends the subscription, so revenue can't wait on retention. High built-in churn pushed Tinder to monetize users while active, placing payment where it wouldn't shrink the network.

    Viral growth was slowing, so revenue also funded paid acquisition. Gong: don't feel bad charging, users who want to pay deserve to.

8Monetizing value, not extracting it

  • Squeezing prices past delivered value drives users away. Higher prices and more paid products now make dating apps feel too expensive, pushing users toward Instagram for discovery. The weak link has shifted from monetization to engagement.

    Ravi Mehta: "how do we monetize the value that they're getting rather than try to extract from it."

9Launching at USC and the campus playbook

  • Cut onboarding friction, but add friction where it improves quality. Facebook sign-in and light profiles cut onboarding to under five minutes versus 20 to 30 on desktop sites. Double opt-in matching made conversations better.

  • Tinder seeded USC one fraternity and sorority at a time. Location showed new users people they knew, pulling in the campus. An ambassador network then scaled it to every US college.

    Bumble and dozens of others copy the ambassador model.

  • Product features recreated dense networks in time and place. Tinder U ran swipe-offs between colleges, Festival Mode covered the summer dip, and Swipe Search sent peak-time notifications to everyone nearby.

10Serendipity over search: the no-filter rule

  • Bright-line principles decide what Tinder never builds or charges for. Height is the most requested filter, yet Tinder never added it, wanting serendipitous discovery rather than a search engine for people.

    Hinge and Tinder share many roadmap items but differ on filters and prompts.

11Branded search and SEO city pages

  • Tinder out-searches the category words dating and online dating. Paid marketing and brand building created that branded demand.

    So stats like 63% of downloads from search are mostly branded.

  • City pages targeted loneliness, not the category term. Tinder's inbound search was all branded until it built local pages pitching Tinder as the fix for loneliness in a new city, each leading to a download.

    Product backing got them built.

More in Social & Dating

Social & Dating

Facebook

A social network built around connecting people and sharing.

58 sources · 128 tips
Social & Dating

Instagram

A photo and video sharing social app built around creators, Stories, Reels and feeds.

38 sources · 79 tips
Social & Dating

TikTok

A short-form video app where creators post content and can earn through a revenue-sharing program.

35 sources · 75 tips
Social & Dating

LinkedIn

A professional networking platform for jobs, hiring and career content.

15 sources · 55 tips
Social & Dating

Snap

The company behind Snapchat, a camera-first messaging app popular with teens.

6 sources · 29 tips
Social & Dating

Discord

A chat and voice platform for gaming friends and communities.

10 sources · 29 tips
Social & Dating

Snapchat

A camera-first messaging and social app built around close friends, Stories and AR lenses.

10 sources · 23 tips
Social & Dating

Twitter

A social network for short public posts and real-time conversation.

11 sources · 29 tips