Groupon /Living Social to Attract People to Your Website

For certain retail, service and product-based businesses, “daily-deal” sites such as Groupon and Living Social could be a valuable source of new clients.

Although their selection of who gets to advertise can be restricted, a British business coach recently discovered Groupon’s willingness to offer his service through their email newsletter and web page, resulted in massive sales.

The beauty of advertising with these daily-deal companies is there’s no up-front cost to reach millions of their subscribers.

The negative is that you are required to provide a deep discount to their clients – typically 50% – plus half of the remaining revenue goes to the daily-deal company. This typically leaves you about 23 cents for every dollar of revenue, after discount and credit card fees.

Also, this is a voucher system, where clients show up with a voucher, which you enter into their Merchant System. Then you typically get paid in thirds – 33% after 7-10 days, 33% after one month and 33% after two months.

If this sounds steep, it is.

However, Groupon and Living Social justify it for three situations:

• If yours is an ultra-high-margin business (if you make 90 cents on the dollar, giving up 75 cents may not be so bad);
• If yours is a repeat-purchase business like a restaurant or someone needing therapy, where the client will come back over and over again after the discount period; and
• If enough clients will buy more lucrative back-end products and services once they have experienced the initial product or service (the coach mentioned above sold enough $1,200 training programs to easily justify the cost).

If they accept you, one of their reps creates a custom offer to attract the highest number of prospects. Then, your business gets featured for one day on Groupon’s local site for your location.

Remember, these daily-deal companies have millions of people who regularly respond to these coupon deals. So if you are accepted, be prepared for a sudden avalanche of clients.

The downside is, many of the clients they send you are coupon junkies, who only respond if there’s a deep discount. That’s why it’s important to weigh the cost of using one of these programs against the possible benefit.

• Will you lose money on this promotion?
• Will you earn enough money later from this client for it to be worthwhile?

If the answer is yes, this could be a valuable and quick source of new clients. If not, it could be a quick road to insolvency. So do your homework, to make sure it will ultimately be profitable. 

For access to these daily-deal companies, go to:

• www.grouponworks.com/
• https://getfeatured.livingsocial.com/getfeatured/us

Remember, because they get paid so much, they have a great incentive to attract the highest number of people as possible to your business.

Example of a Groupon Product Promotion

 

ALSO SEE

Sales Promotion — Page 13 of 5-MINUTE MARKETING

PR & Publicity

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If you’d like details about another Website Magnet — click on a link below

How will you bring “qualified” prospects to your website or web platform?

Search Engines | Social Media | Directories | Press Releases, PR & Articles | Blogs | Posting Expert Comments on Forums | Article Directories / eZine Directories | Video and Blog Sharing Sites | Articles on Partner Sites / Partner Newsletters | Affiliates / JV Partners / TeleSummits and Alliances | Emails / Email Newsletters | Banner & Text Ads | Webinars / Teleseminars | Viral Marketing | Tell-A-Friend | Promotional Marketers | Offline Marketing