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Furthermore, the online dating industry has made a lot of secondary players wealthy thanks to affiliate marketing.The town sits about 30 minutes southeast of Philadelphia and has a population of less than 20,000. I had about a million questions, but two immediately simmered to the top: By the time I pulled into my parents’ driveway, I had convinced myself that the site was the product of some overzealous local entrepreneur.As I drove past my old high school, my deal-hunting subconscious noticed something bizarre. ORG“ It looked like something the local contractor would ask to stick in your front yard while he replaced your roof. I wrote off the lawn sign as an amateurish stab at guerilla marketing.During this time, every radio commercial, billboard, and t-shirt bearing a domain name held a special meaning: it represented an opportunity to find the next big deal.As you can imagine, the same names kept popping up again and again. One weekend, I trekked down to South Jersey to visit my parents in my hometown of Glassboro.I had visited each of the URLs I saw on the lawn signs, and each contained a multi-step form asking for a bunch of personal contact information.

This led me to suspect that the business wasn’t running its own site, but was acting as an affiliate marketer.

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I was in Central New Jersey on my way to give a guest lecture at Princeton University, which is about the geographical midpoint between New York and Glassboro. The technology required to connect two people is trivial, meaning your only real expense is the cost of customer acquisition.

As my cab rolled through neighboring West Windsor Township, I saw a familiar-looking lawn sign wedged in the grass alongside the road: “Single? If you are part of the natural oligopoly, your product quality will be high and people will seek you out.

Eight feet in the air, tied to a lamp post, was a white sign with black Times New Roman: “Single? Aside from the URL, this sign was identical to the one I had seen in Glassboro. At the absolute least, I was now convinced that this lawn sign business had its tentacles stretched into almost every town in the state of New Jersey. In talking to a few colleagues about this fascinating business, I learned that most private equity shops shy away from dating sites for a number of reasons: However, just because something isn’t a great investment prospect doesn’t mean it’s a bad business.