Daily deal sites like Living Social and Groupon have been popular for some time. A number of competitors have popped up and the nature of the deal has even changed from simple discounts on local vendors to nationwide deals with big brands and even vacation/travel packages. Many new and established business have taken advantage of the opportunity to drive new customers to their door step or website. However, as enticing as the new business is, it comes with a cost. These sites can take as much as 60-70% of the revenues that you earn. Revenues that are already cut tremendously with the deeply discounted price you offer – typically 40-60% off.
Has your business run a daily deal to drive new customers? Read on to learn about the dangers of daily deals and a new alternative.