The Economics Of Ashley Madison

October 13, 2013 in Daily Bulletin

Ashley Madison is a “dating” service that focuses on facilitating extramarital affairs. According to Lynnley Browning it’s incredibly successful:

  • The site made $30 million last year and expects $40 million this year.
  • There are now 12.7 million members in the United States and 8.7 million overseas.
  • The fastest growing markets are in Japan and Hong Kong.
  • It makes its revenues by selling credits that allow male members to use its secure email facilities. People can buy additional services such as a $20 “Travelling Man” program for business travelers.
  • There’s also insurance in the form of a $249 guarantee that promises a full refund if a member is unable to set up an encounter within three months.
  • Women can use the site’s basic features for free.
  • The city with the most infidelity is, of course, the seat of American politics: Washington D.C. 6.2% of all residents are members of the site almost twice as many as second placed Austin.
  • Males who work in finance are most likely to use the site. The same is true for females in education.
  • Membership spikes after days with celebrations of commitment such as Valentine’s Day and New Year’s.
  • There are four times as many 39 year old men as there are 38 year olds. The fear of turning 40 appears to have a weird effect on men.

The full article has many more details, talks about other services that users can purchase, why if it ever has an IPO stocks will likely be a bargain, and the (married) founder of the site and where he got his inspiration. Find it here.

Source: Newsweek

Via: Marginal Revolution