As the owner and founder of one of the biggest companies in the adult space, AdultFriendFinder, you'd think Andrew Conru wouldn't need an introduction. His company has dominated adult dating since its inception in 1996 and shows no signs of slowing down, having recently merged with Legendary Lars' cam program, Streamray.
Despite all the noise over the years about AdultFriendFinder, Conru has made little of it himself. It's clear in speaking with him that promotion isn't his game.
Conru deals in ideas and technology. Talking to him, his intelligence comes to the forefront. You get the idea that he's already forgotten more than you'll ever know, but that he'd still go get a beer with you at the end of the day.
He's unpretentious, candid, and yes, he embodies the Midwestern work ethic.
All in all, not too shabby for a kid who grew up on a farm in northern Indiana.
MJ McMahon: First things first: How's the merger and integration with Streamray going?
Andrew Conru: We're really excited with the site. It's been fun figuring out the ways we can leverage the different traffic. Lars' cam traffic is a little bit different than dating traffic, but because of the differences, there are a lot of symmetries we can leverage from it. It's very exciting to be able to take their video-centered company and integrate with the dating stuff we have. I think the bottom line is it's just going to increase our conversions on both sites.
When will you be fully integrated?
By the time this is in print we're going to be launching a newer version of the cam site that takes advantage of our community software. It's the first step along the way when it comes to the integration. One of the key things is our affiliate programs are going to be better integrated, as well as the user base.
What is that going to mean for FriendFinder and for the affiliates?
For affiliates it's going to mean they're not going to have to change their links anywhere on their websites to make money on both of our sites. If you promote one site, you'll automatically be able to promote all of the other sites in our network. We believe that every click that comes to one of our sites is going to have a higher return for both of us, as well as the affiliate.
How long have you been in the industry?
I wandered into the industry around 1996. In '96 I started FriendFinder. It was going to be a mainstream site—one-stop shopping for all sorts of relationships. After the first day of launching the dating site people started uploading more revealing photos and we realized we either had to delete the photos or create another site that didn't have restrictions on what people could upload. That site was AdultFriendFinder. By the end of 1996, AdultFriendFinder was a pretty active site itself.
So it kind of happened by accident?
It's kind of indicative of what we've been doing the last nine years. We've always listened to what our members wanted and evolved the sites based on that. This was clearly a case where people wanted a place where they could upload more provocative information about themselves, and we saw an opportunity to provide it.
What did you do before FriendFinder?
I had started a number of Internet companies going back to 1993. AdKnowledge was the first banner network to consolidate ad space on hundreds of websites. I also started the first web-based dating site in 1994. And I was still at Stanford; I got my Ph.D. there. I was kind of working during the day on FriendFinder and then at night working on the Ph.D.
This is your first venture out of school then?
Yeah, actually, I've never had a job.
Did you have any idea it would turn out to be something this big?
No, not at all. If you asked 10 years ago what I'd be doing today, I probably would have said something in academics. I was going to be a professor when I got out of Stanford, but FriendFinder really took off, and I've helped more people with the FriendFinder sites than I could have if I was a professor.
Is that why people call you "The Professor"?
I guess that's the reason why. About four years ago I was looking for a little more adventure so I decided I'd go teach a class. I taught a rocket control systems course at Santa Clara University. I think people in the industry picked up on that and said, "There's a little something odd with this guy."
Is keeping your finger on the pulse of your members' needs most important, or is it the webmaster community, or a balance between the two?
You always have to listen to customers, whether it's members or the people promoting your sites. They really drive what we do. For example, if an affiliate wants a certain type of banner, we build that banner for them. We evolve to meet what they want. However, you also have to be able to predict what people want. Part of being an innovator is merging new technology with human needs. I'm really happy with the relationship I've had with Lars over the years. There's a synergy there, with myself being a type-A, hard working guy and Lars being the same way, but one who knows what's going on in the adult business more than I do. He's definitely someone I can bounce ideas off of.
What do you think is the key to your success in the adult realm?
It's all about working hard, focusing on conversions and what matters to our members. But the biggest thing in the adult industry is integrity. You might be able to make a fast buck somewhere if you're dishonest, but if you're going to be around for nine years and earn the trust of people, you really have to do what you say.
Looking at the industry as a whole, is business in an upswing or are we slowing down?
I think there are some general trends in the last five years. Not necessarily a slowdown, but more of a shift to quality. Five years ago people were a lot more profit focused. Now they're more member focused—what people get from their websites. Sites are better quality, they treat their visitors better, bigger sites are still getting bigger, but the margins are getting a little tighter. I think people are spending the same amount of money, if not more, today than they were five years ago. We're certainly seeing it as our company has grown every year since '96.
There are a lot of adult dating companies popping up. Is the competition good, and how do you stay on top?
We've had competition the last nine years. I don't see too much difference in the competitive landscape today than it was five or 10 years ago. I rarely look at what competitors are doing. I look at what we're doing to make sure we convert as well as we can. The unique advantage we have is the same one that eBay has: size. Why would you list your item at a small online auction where it will be seen by just a few thousand people, rather than eBay where it will be seen by millions?
The same is true for us and our site visitors. When someone goes to AdultFriendFinder and finds there are 500 potential dates within a mile or so of their home, they're more likely to join that than a site offering just 10 nearby members. The bigger you are, the better you convert. With more than 17 million people on our site, it's the highest converting dating site out there. That being said, we're not one to ever slow down. We have 200 people in the company and we're rolling out about 30 new products every week in our release cycle so we're able to keep evolving.
Generally, what are your work hours?
Well, it's easier to go the other way around—count the hours I don't work. I work every day of the week. I get up every morning and look at the numbers and stats. I take a few hours at home and then go to the office for eight or 10 hours. Then I come home and before I go to bed, check the numbers again and maybe do some emails. So usually about 70 hours a week.
You still check your own stats every morning and evening?
I think any CEO that doesn't do that doesn't have their finger on the pulse of what's going on.
What's the best advice you've ever gotten?
The best advice came from my mom. When I was a kid growing up, she said, if you're going to do anything, never do it half-assed. Everything I do, I try to do it the best I can.
How about the worst?
Probably any stock advice I've had over the last five years.
Office fashion: Armani suits or flip-flops and Hawaiian shirt?
The key part is, you're on the Internet, so whatever you want to do to stay productive. I'm a jeans and T-shirt person.
What's it like working with Lars?
It's great. Lars and I have been friends for over 10 years now. He worked a few months at one of my start-up companies 10 years ago and we've kept in touch all along the way. I've watched him grow Streamray to one of the top cam companies. He's more than just a business associate; he's a close personal friend.
Are you shy?
No, not really. I'm more busy than shy. When I go to the shows I love meeting people and talking to them, doing presentations and such. I'm pretty flexible and open.
Will we ever see any self-promoting a la Legendary Lars?
It's hard to compete with Lars' hat. I'm happier when someone likes my site than them thinking my name's important.
Why don't you fly?
I was on a plane where the engine caught on fire over the Pacific Ocean. After that, I said, I think I'll just stay on the ground for a while.
How do you balance the mainstream aspect of your business with the adult side?
For us, the core of all the sites is similar. They're all communities. Whether it's a senior site, a Jewish site, or adult-oriented, they all foster interaction and community. You have to make sure you don't have overlap between certain communities, but since each one of our sites is independent they're able to focus on the communities individually.
Do you ever see adult and mainstream merging?
We see a wider acceptance of the adult sites than when they first came out, perhaps because many adult sites are increasingly catering to a more mainstream audience. We have 17 million members on AFF alone and when you have that many people who are open minded in their sexuality, adult-oriented services start to become truly mainstream. Sure, there are factions of people out there who are opposed to adult dating sites, but the site keeps growing every year.
Is there a CEO, adult or mainstream, that you admire?
I'm more impressed with a company than a CEO, perhaps because I haven't met that many CEOs. If the company does well, it's a sign that management and their employee team are doing a good job. A company that has growth, treats its employees and its customers well is what you have to look for. Look at Wal-Mart, especially when Sam Walton was running it. Here was a guy who really kept his eye on the ball, always looking for ways to improve his stores' conversions. If there were someone I would emulate it would be someone like Sam Walton.
Looking back to when you started, is there anything that you would have done differently?
Sure, you'd like to make fewer mistakes along the way. Any company is going to have things to learn from, but I've been pretty happy with the way the company is run. It's just like playing poker: it's not all about winning the big hand, as you're more likely to lose any single hand. To win the game, you need to minimize your losses when the cards go against you.
How concerned are you with the new 2257 regulations?
Our company is in a unique position in that most of our images are voluntarily posted on our website by our members. Consequently, AdultFriendFinder is not considered a producer. As for our advertising or promotional content, much of which is licensed from modeling agencies, we generally do not use sexually explicit images.
Nevertheless, as a small consequence of the new regulations, we are triple checking and removing any sexually explicit creatives from our inventory. To the extent that there is nonmember-generated sexually explicit content found on our site, we continue to follow the government's record-keeping requirements, confusing as some of them seem to be. I just wish I could say that I enjoy watching our attorneys argue about some of the nuances of the new regulations. In reality, I probably could do without knowing the difference between a "secondary producer" and "mere distributor" or the multiple factors used to determine whether an image is "lascivious." Luckily, our two attorneys have at least three opinions about almost everything. Keeps them busy, I guess.
What advice would you give to someone starting out in the industry?
One thing that's worked well for me is always doing things in parallel. We have 30 different community and product sites out there. If you run a bunch of them simultaneously, some of them are going to do well and you have fallbacks in case some of them don't turn out as well as you planned.
With all your success, do you ever think about getting out?
Everyone has days when they get stressed. Is there an exit strategy for companies like ours? For nine years it's been a fun, fun ride. The hard part now is, if we were to develop an exit strategy, finding the right players for it.
What's next for the company and yourself?
We're now in the 10th year of the company and we see it as a constant evolution. Going forward there's a greater emphasis on video and more personalized services. I think online personals and adult personals are here to stay for a long time. They serve key human needs for interaction and relationships. If you're helping people, you're going to stay around. We're also looking at ongoing growth as we acquire new businesses, both in and out of the adult arena. We've got a few deals in the pipeline … and we're always looking for more.
Do you ever see this as being the dominant way of dating or meeting people?
As opposed to meeting someone at a bar? I think it's just another avenue to meet people. So many people don't have as many social connections as they'd like. Having the ability to be on a bulletin board system like an online dating site is key for expanding your network.
If you were on the cover of Forbes one day, what would you like the headline to read?
Sign up for a free membership on AdultFriendFinder.com.
