Business Operations Business Models

How Does Tinder Make Money (Business and Revenue Model)

The Tinder business model

How Does Tinder Make Money?
Here’s what you should know:
  • What is Tinder, and how does Tinder work?
  • How does Tinder make money?
  • Tinder Subscriptions (3 Tiers)
  • Super Likes
  • Boosts and Super Boosts
  • Tinder’s profit and revenue
  • What is the Tinder business and revenue model?
  • Tinder’s funding and valuation

How does Tinder make money if it’s free? Here is a full, in-depth, breakdown of their three (3) revenue streams and the different products and services they offer, as well as the Tinder business model, their year-over-year revenue, and how Tinder works.

What is Tinder, and how does Tinder work?

Tinder is an online dating app that allows users to like or dislike other users on the app by swiping left or right on their pictures. Two users who like one another “match” and can message each other in the app.

How Tinder works is: Once users download the app and create a profile, they can swipe left or right to match with other users. When a match happens, they can message each other on the app.

Founded in 2012 in a startup incubator called Hatch Labs by Sean Rad and Joe Munoz, Tinder now has over 66 million users and a $10 billion valuation.

Some of Tinder’s competitors include Bumble, Hinge, and other online dating apps.

Tinder App in Apple App Store | Tinder Business Model | How Does Tinder Make Money?
Source: Apple App Store

How does Tinder make money?

To date, Tinder has 66 million users swiping on their app. Of those, 6.7 million are paying users. So how does Tinder make money from those paying customers?

Below is a breakdown of how much money Tinder makes and its revenue model. Including their revenue streams and how much they make from their services.

Here are the 3 ways of how Tinder makes money (in 2021):

Tinder has a revenue model that makes money in three (3) ways – Tinder Subscriptions, Super likes, and Boosts.

#1. Tinder Subscriptions (3 Tiers)

Tinder makes money by offering paid subscriptions to its users. These three (3) paid tiers are: Tinder Plus, Tinder Gold, and Tinder Platinum.

In 2015, Tinder launched its first paid subscription, Tinder Plus. Followed by Tinder Gold in late summer 2017 and Tinder Platinum, their newest service, in late 2020.

To date, Tinder has 66 million users swiping on their app. Of those, 6.7 million are paying users.

Tinder operates on a freemium business model. Their dating app service is free but is designed to be very limited in features to get users to upgrade.

Upgrading to Tinder’s paid subscriptions like Plus, Gold, and Platinum gives users the perks that the freemium model doesn’t offer – like adding a message for free with every super like, getting prioritized likes, seeing who likes you, top picks, unlimited likes, 1 boost per month, 5 Super likes a day, rewind, and passport.

Tinder Subscription Cost: (Plus, Gold, and Platinum)

  • Plus: $4.99 to $27.99
  • Gold $14.99 to $82.99
  • Platinum: $19.99 to $99.99
Tinder Premium | How Does Tinder Make Money?
Source: Tinder

Note: All subscriptions are recurring, so it auto-renews itself on the Apple App Store until the user cancels the subscription. If not, the user will continue to be charged.

#2. Super Likes

Aside from packaging features together in their three (3) subscription services, Tinder also makes money by selling premium features individually.

The free version gives all users 1 free Super Like per month. So Tinder sells the option to purchase additional Super Likes in quantities of 5, 25, or 60.

Tinder Super Likes Cost:

  • 5 super likes: $7.99
  • 25 super likes: $29.99
  • 60 super likes: $59.99
Tinder Super Likes
Source: Tinder

#3. Boosts and Super Boosts

The other add-on premium features Tinder sells are Boosts and Super Boosts. A Boost gives a user’s profile, as Tinder puts it, “10x more profile views” for 30 minutes and a Super Boost gives “up to 100x more profile views” for 3 to 12 hours in that user’s geographical location.

Tinder Boosts Cost:

  • Boosts: $6.99 to $49.99
  • Super Boosts: $39.99 to $129
Tnder Boosts
Source: Tinder

Tinder’s profit and revenue

In 2020, Tinder made $1.35 billion in revenue, which accounted for roughly 57.6% of their parent company’s, Match Group, total revenue of $2.34 billion.

Note: Because Match Group Inc, the parent company to Tinder, is a publicly traded company, under the Securities Exchange Act of 1934, they must file continuous financial filings with the U.S. Securities and Exchange Commission (SEC). You can find all of Match Group’s publicly released financial reports, including annual reports, through Match Group’s investor section on their website.

What is the Tinder business and revenue model?

Tinder makes money through a few revenue models that they combine within their company, they are:

  • Freemium (upselling) business model
  • Software as a service (SaaS) business model
  • Transaction-based business model

Tinder’s funding and valuation

According to Tinder’s Crunchbase profile, Tinder raised $50 million over 3 rounds with a valuation of $10 billion.