HOTorNOT.com $5million a Year -> Case Study

November 21, 2006 at 4:42 pm Leave a comment

When HOTorNOT first swept onto the scene a few years ago, not many people thought it would amount to anything more than a short-term fad. Even today, not many people recognize that HOTorNOT has a very profitable casual dating service consisting of 500,000 – 600,000 active users. HOTorNOT is making somewhere between $5M – $10M per year in revenue with very little cost since they don’t spend any money on marketing.

One month after James and Jim launched HOTorNOT they had an acquisition offer to be bought for $3-5M. Not a bad result for a couple months of work. However, they rejected the offer for several reasons. For one, they thought they could launch the premium dating service and make more money that way. Since the dating service had yet to be launched, this was a big gamble. Luckily, it paid off and Jim and James have been paid the $5M several times over. They were also fearful that the acquirer would not run the service the way they intended – as a community.

Read Full Article http://www.startup-review.com/blog/hotornotcom-case-study-mixing-free-and-premium-services.php

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Entry filed under: Internet Startup.

If at first you don’t succeed – Try, then try Again !!! In the web world rich people now envy richer people

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About Biz News

My Name is Bisi and this is my blog This blog features stories that I have read that I think are interesting . I usually bookmark the stories that I find interesting but they are getting too many . I have decided to catalog and share them on this site . I am not really promoting the site so you might have accidentally stumbled on it . Thanks for visiting .
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