Newsmaker: China's king of online dating

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What did you personally want to do?
Marine: I voted to accept the 10 million renminbi. At that time, I was not happy with the other founders. But today, we are friends. You know, another founder of Fanso is also in my company, Efriends, now.

You mentioned that Fanso later went bankrupt. What did you end up doing next?
Marine: I joined NetEase. But first I spent two or three months at home to think about the whole deal, to think about my future. When I joined NetEase, I took charge of the wireless business. At that time, in the end of 2001, the wireless business was just an emerging market in China, and I wanted to know how to do this kind of business. I had already learned a lesson from Fanso: If you want a business to be successful, it must be a profitable business.

When I joined NetEase, I think the revenue for the whole wireless division was no more than 1 million renminbi per month. When I left two years later, our revenue was nearly 40 million renminbi ($5 million) per month.

So now you've started a new dating-services company, Efriends. What are your plans?
Marine: We have a five-year plan. For the first two years, 2006 and 2007, our target is to accumulate more users. I think there will be a chance, which is the Olympic games in China in 2008, to build our brand in Asia. When the foreigners come to China, we'll let them know, "If you want to find a life partner in China, come to Efriends."

With your dating network, do you have any problems with prostitution or other issues?
Marine: I think we have some problems in the industry in China. For example, fake problems, trust problems, paying method problems, but we have solutions.

What is the No. 1 headache for you?
Marine: I think that is the (current) bubble. The good thing is, more competitors help us to educate the whole market. The downside is that they pay employees double or triple. We will lose some of the employees. They put more money into marketing, and our marketing expenses will also increase. For example if we want to buy an advertisement (with a) newspaper, a competitor may talk with the newspaper and say, "I'll pay you twice."

Well, so why will Efriends win out?
Marine: Currently, I think only Efriends is profitable. If not, I think there only a few profitable dating companies in China. We have a social-networking database, which is totally different from the other dating providers. When you search on Efriends Net, you can find whether there is a relation chain between yourself (and another person you're interested in)--that will help you feel more comfortable and more safe.

You're a pretty young fellow. In Asia, there is the culture of respecting the older generation. Is there any problem being a young CEO in China?
Marine: You're right. In September I will be 30. I have a lot of challenges. Nearly all of my customers, my partners, for example from China Mobile, are older than me. The important guys are above 40--I'm getting used to that. In the beginning, I think they don't believe such a young guy can do something. But I think after several times of discussion (they see) I can bring value to them.

In the United States there's been a lot of discussion in the last few months about American companies providing information to the Chinese government and helping to enforce its policies. Google, for one, says that in order to do business in China, it has to cooperate with the powers that be. But a lot of Americans don't agree with that. What's your opinion?
Marine: I think China is changing--the mind, the whole system. But today if we want to do business, if we want to win in China, we have to accept the current situation, play by the rules. Sometimes, I think the best way is to help to make the rules.

More Newsmakers

[Jackson Cracker]

first met in late November of 2006?

I realize China is in a later time zone than the USA, but I didn't think it was that late.

[katamari]

Hahaha

Had me laughing. Good comment in jest.

Cliff, fix your article. Makes you look bad...

[Jon Skillings]

Typo fixed

Even on that side of the International Date Line, China's clocks don't run that far ahead. The year was actually 2005.

[Kushan]

Interesting interview.

Seems like a neat guy.

[ss_Whiplash]

No revenue???

"but we didn't generate any revenue, and the worst thing is that we didn't think generating revenue was necessary"

Way too many companies had this mindset a few years back and it absolutely floors me. How do you come to the conclusion that generating revenue is not necessary for running a business???

[jabbotts]

better products come from less revenue focus

well, that'd be my guess anyhow as I'm not business genious. Here's my thoughts though:

In the technology industry, the better technology rarely wins out over the better marketed technology.

A revenue focused business produces the cheapest "good enough" product that they can to maximize profit margin (revenue). All that revenue means great advertising and a loss for the better technology.

A innovation focused business produces the best possible product that they can for minimal profit margin because they're concern is moving technology forward not investor's bank accounts. But then, less revenue for marketing means the "good enough" technology and greed win over the better technology.

I can see how a couple of students would focus on the ideals of their first business and overlook the need for revenue. Unfortunately, in tech, you always have to compete against the usual greed gluttons who survive by keeping the better technology from threatening there slow and steady release schedual.

[Mark C. Brooks]

Beijing - iDate2006

I met Marine Ma at the Asian internet dating convention in Beijing earlier this year

Mark Brooks
editor, onlinepersonalswatch.com
media relations, internetdatingconvention.com