Are you curious about how does Hinge make money? Hinge, the dating app, has seen significant growth over the past few years, gaining over 10 million global users. This article covers the Hinge Business Model and explores how does Hinge make money.
Hinge: Company Profile
What is Hinge?
Hinge is a matchmaking app, similar to Tinder, OkCupid or Bumble. It was founded in 2012 by Justin McLeod. Hinge claims to be different from other dating apps by using a more traditional matchmaking method.
What makes Hinge different from the rest? Hinge targets singles who are serious about dating.
Hinge wants to be the relationship app for millennials, focusing on creating meaningful relationships and natural conversations instead of hookups. It makes intelligent matches and brings people with common interests together.
How was Hinge started?
Justin McLeod started Hinge because of his own dating challenges. He had broken up with his long time fiancée because of his addiction issues.
When he wanted to move on after a couple of years, he was overwhelmed with the number of dating apps available and felt most dating sites were just glorified hookup sites. Justin started Hinge to fill this void.
Hinge claims that they can create stronger relationships than other dating apps because their matchmaking algorithm is designed for long term success in a relationship, not just immediate hookups.
For those wondering, no, Justin did not find his soulmate on Hinge. He reconnected with his lost love, Kate Stern, and married her after a long gap of 7 years, with encouragement from Deborah Copaken, who interviewed him for the New York Times.
How does Hinge work?
Hinge is quite similar to several dating apps such as Tinder, Bumble, OkCupid or Plenty of Fish. It is entirely free to use and has mobile apps available for iOS and Android.
Once you download the app and create a profile, you can start liking other profiles and matching with Hinge members. When you get matched with other members, you’ll be able to message them.
Hinge has marketed itself brilliantly, with its tagline “The dating app designed to be deleted”. When it launched in 2012, Hinge struggled to differentiate itself and hit the top charts on the App Store.
Although it had the swiping features of Tinder when it launched, it completely rebranded itself in 2016, focusing less on swiping features and matching people based on shared interests.
Hinge’s succeeded because it has created a meaningful social network that helps its users meet new people. Its success is also because of its revamped marketing strategy, where Hinge positioned itself as a relationship app that’s right for those who want more than just casual dating. Thus, Hinge managed to gain traction and become one of the most popular dating apps among millennials.
Who owns Hinge?
In June 2018, Match Group, which owns Tinder, OkCupid and Match, acquired a 51% stake in Hinge for an undisclosed amount and completed the acquisition of Hinge in 2019. Hinge is wholly owned by Match group.
Hinge’s users: Hinge has 10 million active users globally and 1.2 million active users in the US.
Hinge’s valuation: Hinge is valued at $6.4B
Hinge’s employees: Hinge has 140 employees.
Hinge’s revenue: Hinge is a private company, so it does not make its revenue numbers public. However, Hinge generates an estimated revenue of $16.1M per year.
Hinge’s funding: Hinge has raised $20.6M over four funding rounds. Investors in Hinge include Shasta Ventures, Eniac Ventures, Great Oaks Venture Capital, among others.
How does Hinge make money?
The free version of Hinge lets you access member profiles and match with them. Hinge makes money through its premium features such as Preferred Membership, Boosts and Virtual Roses.
Preferred Membership features include sending unlimited likes, setting your partner preferences and viewing all members who liked you. Hinge Preferred Membership is priced at:
- 1 month – $29.99
- 3 months – $59.99
- 6 months – $89.99
Hinge charges members a one-time fee to access its premium features, in addition to selling them as Preferred Membership subscriptions.
Boost is the one-time fee version of the Hinge Preferred Membership. With Boosts, members can boost their profile to be promoted for one hour. Hinge Boosts are priced at:
- 1 Boost – $9.99
- 3 Boosts – $8.99 each
- 5 Boosts – $7.99 each
- 24-hour Superboost – 19.99
You can also purchase virtual roses, which you can send to members instead of likes. Members can buy virtual roses for the following prices.
- 3 Roses – $3.33 each
- 12 Roses – $2.49 each
- 50 Roses – $1.49 each
What is the Hinge business model?
Hinge has a couple of business models.
Hinge uses the freemium business model, the SaaS (Software as a service) business model and the transaction-based revenue model to make money.
In the freemium business model, Hinge offers a basic service for free and then charges users for an upgraded version of the same service.
With the SaaS (Software as a service) business model, Hinge charges its users monthly for its service.
The transaction-based revenue model is when Hinge earns money by charging for transactions completed through its platform.
Hinge burst into the overcrowded dating app scene in 2012 and managed to gain traction. It is one of the most popular dating apps globally, with over 10 million global users. It has successfully differentiated itself from its competitors like Tinder by focusing less on swiping features and more on matching people based on shared interests. With new features such as voice notes and voice prompts on dating profiles, Hinge has cemented its position in the dating app market. We hope this article has given you some insights into the Hinge business model and how does Hinge make money.
Frequently asked questions about Hinge
1. What is Hinge?
Hinge is a dating app known for its “relationships not random hookups” approach to online dating.
2. Is Hinge a free app?
Hinge is free for its basic service, but you have to pay to access its premium features like Boosts. It also sells virtual roses on its app.
3. Who owns Hinge?
Match Group, which also owns Tinder, acquired Hinge in 2019.
4. How many users does Hinge have?
Hinge has over 10 million active users globally and 1.2 million active users in the US.
5. How is Hinge different from Tinder?
In addition to being focused on shared interests, it is seen as a more classy dating app than Tinder, which focuses on casual flings. It also differs from Tinder in that it encourages meaningful conversations between matches.
6. Who is eligible to use Hinge? What is Hinge’s age limit?
If you’re over 18 years of age, you are eligible to use Hinge.
7. How does Hinge make money? What is the revenue model of Hinge?
Hinge makes money through its SaaS (software as a service) business model, where it charges users monthly. It also monetizes through its Hinge Boosts program where it allows users to pay to have their profile highlighted on the app.