This case tests candidate ability to brainstorm multiple monetization strategies, conduct market sizing, and perform comparative financial analysis. The key insight is recognizing that while the monthly fee model generates the highest profit initially ($25.7M), market trends (Exhibit 3) showing declining subscription willingness post-2012 make the premium account model ($20.6M profit) more sustainable long-term, demonstrating the importance of considering market dynamics alongside raw profitability.
Our client is an online dating startup named Grad-U-Date, which specializes in matching graduate students with other graduate students. Grad-U-Date has finished building their app and are now looking for your assistance in deciding on a monetization strategy.
What is Grad-U-Date’s best method of monetization? How profitable will the company be?