A January 2006 JupiterResearch consumer survey found that 5% of Internet users paid for online dating subscriptions in the last year, down slightly from 6% in 2005. Industry-wide user conversion rates fell for the first time since JupiterResearch began tracking that metric.

"Although online dating revenues continue to grow, rising prices have kept a large number of users from converting to paid subscribers," said Nate Elliott, JupiterResearch Analyst. "Thirty seven percent of visitors who don't convert say dating sites cost too much, making it their leading complaint," added Elliott.

The JupiterResearch report also concludes that social networking sites pose little threat to the online dating industry. Just 14% of dating site visitors who donÕt pay for subscriptions say they use free sites, like social networks, for online dating instead.

"Only one-third of Internet users who went to dating sites in the last year became paying subscribers," said Elliott. "Our research shows there is an opportunity for dating sites to use targeted discounting strategies to convert more of their visitors into paid customers," added Elliott.