Monday, February 8, 2010

Cost of a Brainy Single

Since my online dating website BrainiacDating.com just passed the 15,000 member mark, this is a good point to reflect on the cost of acquiring all of these members. Firstly I should point out that this is the net number of active members on the site, not the total number that have ever joined - which is closer to 17,000.
According to my exit survey - about half of those who have left have done so because they have met someone, the rest of the departures were split by "did not find enough matches or activity on the site", "did not like using the site", or did not answer.

So the net number of members on the site - which is close to 15,200 as of today has been reached in about sixteen months since I started.


The following table shows the paid advertising sources of the new members:



SourceNumberAverage cost per acquisition
PlentyofFish.com (via AdWords)10,000$3
Facebook advertising 3000$3
Google Search( via AdWords) 200$5
Ad in the MENSA bulletin 120 $4
Slashdot.com (via AdWords 100 $4
Yahoo Search Marketing30 $5


Currently conversions on AdWords cost over $10, so I do not target it anymore. Cost of acquisition, usually called "conversion cost" is how much it costs in terms of clicks multiplied by cost per click to get each new member.
Not every click results in a new member joining the site, on average my ads have been running at about 5-10% joins/click.

Initially I exclusively focussed solely on Google, but the price of clicks kept rising through the end of 2009 so I switched to Facebook advertising almost exclusively starting in November of 2009. It has taken a few months to improve the use of the Facebook ads, and currently it is running at $2.50 per new member.

My AdWords costs were at a minimum from March to June 2009, as I suspect this was the period when the economy was at its lowest level and the large advertisers had pulled back. Also in the middle of last year many of the newest scams started to appear such as the acai berry weight loss, and they pushed the price up.

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