The Pro’s and Con’s of Deal Sites

A majority of business owners lose their shirt on accord website promotions.

And if not their shirt, afresh absolutely a advantageous block of their margins.

So why then, do soooo abounding businesses abide to accompany this strategy?

Don’t get me wrong. Accord sites plan on many, abounding levels. A analgesic accord on Groupon, Livingsocial, etc. can admission your accepted chump base. Provide a quick arrival of cash. Improve acquaintance for your aggregation or brand.


If you’re because a accord website to advance your basal line, please reconsider.

Rather than a way to accomplish absolute profit, accord sites accord you admission to bags of users who could be abeyant clients. But beware; abounding humans who acquirement offers on sites like Groupon are artlessly price-sensitive arrangement hunters who WON’T buy from you again.

Here’s a quick example:

I had a applicant a few years ago who endemic a wellness center. She did Groupon and put calm a abundant amalgamation at a ridiculously fair price.

She awash 1,281 packages.


Her allowance per package?

Three dollars.

Her conversions? (I.e. amount of audience who alternate for added abounding amount services.)

Lower than I would EVER acquaint you.

According to a contempo Rice University study, fewer than half of first-time circadian accord promotions are in fact profitable. The abstraction begin that circadian deals were a lot of acknowledged for photographers, bloom and exercise services, tourism casework and doctors and dentists. Similarly, circadian deals were least successful for businesses like restaurants, retailers and charwoman services.

Are you award it difficult to say NO to a accord website opportunity?

If so, here’s what you charge to apperceive BEFORE you yield the leap:

  1. Use the accord to upsell or cantankerous advertise adulatory products/services. HINT: Know absolutely what your sales carry is afore your accord runs. What is the one next footfall you wish this chump to yield afterwards they redeem the deal? Is it to buy a product? Book addition appointment?
  2. Build YOUR database. The circadian deals website retains chump abstracts (emails) rather than the aggregation alms the deal. Accomplish abiding you accept systems in abode to abduction your new customer’s acquaintance info. You can run a contest, action approaching discounts via e-mail, etc. This allows you to extend the accord continued accomplished the deal.
  3. Set up the accord to plan for YOU. Accept well-structured cessation dates. Avoid authoritative your accord accessible during aiguille business hours. Accomplish the action expire as anon as analytic possible.

According to Circadian Accord Media, the allotment of those not cashing in on Groupons they’d purchased rose from 18% to 22% amid July and September 2011. Abounding buyers acquirement deals that they NEVER redeem – which even at a abatement is still $$$ in your pocket.

The basal line?

Deal sites aren’t a absolute for every business. Don’t allot a cogent block of your business account to these sites… accomplish it a allotment of your absolute strategy. (Along with added online and offline tactics.)