"There will be no addtional features and functionality for users, this upgrade will be strictly to signal intent to the community."
So basically, all you get for your $20 a month is a badge saying that you're cooler than people who didn't pay. And for your premium membership, you still get the same crap service that freeloaders get.
Are people really that stupid? Asking people to pay something for nothing reeks of arrogance. I'm starting to think Frind got lucky with PoF.
Well luck definitely had a huge component of it. Speaking of his new subscription model, I wouldn't exactly call it "stupid," (nor would I call it especially smart) I just think he didn't explain it correctly.
That's the psychology that the luxury goods market exploits. A $30,000 watch won't tell time any more accurately than a $30 watch, nor will it look much better than, say, a $500 watch, but some people who can spring for luxury items do simply as a token of wealth. Just look at the stereotypical nouveau riche spending habits.
Indeed, usually the $30 watch is more accurate than the $30,000 watch. After all your cheap quartz watch is 99.999% accurate, while your $30K watch is only 99.997% accurate.
Paying for something makes (many) people value it more/be more serious about it. In that sense paying for "signaling intent" makes sense. Eharmony, for example, has always charged high rates and branded itself for more serious relationships. Of course it's dubitable whether this mechanism works in a larger community that is free.
On the ludicrousness spectrum it's slightly less ludicrous than virtual gifts, I'd say.
As for POF/Markus making more money that way, I guess it's like a game to him, figuring out what works and getting a kick out of beating (up) the big guys.
Actually I think he's pretty smart. It's Price As Signal.
Having the free level of service may not say that you're not serious about meeting someone, but having the paid level definitely indicates that you are. In a world with a lot of people who sign up on a lark, this gives other users a tool to indicate who not to waste their time with.
So basically, all you get for your $20 a month is a badge saying that you're cooler than people who didn't pay. And for your premium membership, you still get the same crap service that freeloaders get.
Are people really that stupid? Asking people to pay something for nothing reeks of arrogance. I'm starting to think Frind got lucky with PoF.