In Start, Your Online Coupon or Daily Deal Business, the staff at Coupons 24hrs Press and writer explain how to start a business in the affordable online and daily deal markets. In this edited excerpt, the authors describe the four types of online coupon or daily deal sites you could choose to start.
These are three common methods of giving discounts, with one hybrid that does a little of everything.
1. Online products.
These are websites that provide coupons that you would otherwise clip from a newspaper, magazine or a similar source (known as “Clippers”). Examples include websites such as Coupons.com, These web sites post numerous coupons from all sorts of manufacturers or merchants and make them offered to buyers online. Shoppers go to the site, see what they want and print out the coupons; they can then redeem them at their local stores. Keep in mind: When customers start printing coupons at home, they’ll first download quick and safe software from the site. Once installed, they can click away and get some coupons. Remember, it’s illegal to sell or photocopy coupons.
If you run such a coupon website, your sources of income consist of:
A) A small percentage of the use of the coupons.
B) Working as an affiliate to an established coupon website.
C) Promoting advertising on your website.
D) Subscription to your site.
E) A combo of these revenue streams.
2. Daily deal websites.
The hot trend, as verified by Groupon and LivingSocial as well as Eversave and the eco-friendly Root, are daily deal sites, also known as group-buying sites. These offer deals that evolve through sales volume. In other words, the merchants offer large savings (often 50 percent or more) provided the website can produce enough volume to make it all beneficial. Once the minimum volume, which is typically very low, if there’s one at all, is reached, the credit cards of customers who purchased the deal are charged and they can print out their vouchers, which are typically then redeemed at the store, restaurant, spa, resort or wherever the merchant does business. Most of them are short-term “daily deals,” lasting one to five days. The objective is to grab people promptly and get impulse purchases before time runs out. This prompts the popular “buy now while supplies last” mentality. Mobile apps have made these deals even more available to buyers who can make a purchase while out and about, and swipe their iPhones or provide the code on their mobile device to the seller.
3. Coupon suggestion and aggregate sites.
Coupons 24hrs serve as a directory of sorts, pointing shoppers to where they can find deals, while helping different other coupon sites by providing a wide range of their discounts all in one place.CoolSavings.com, for example, has everything from daily deals via LivingSocial and Groupon to coupons from producers like Breyers, Betty Crocker or Pillsbury. By associating with manufacturers, coupon sites, daily deal sites and anyone else providing a coupon or promo, you become a whole or one-stop shop of sorts, with a database offering customers with many choices from which they can select the best deals. In an age of faster, faster, faster, you’re narrowing down the field for buyers who can look at your site instead of ten coupon or daily deal sites. You can even offer side-by-side comparing of products from various websites. The lazier we get as a society, the more such aggregate sites will carry on to flourish, offered you offer a great variety of savings.
4. Daily deal site.
You could also be a deal site that doesn’t offer “daily” deals but rather includes ongoing deals to members. Members pay a regular fee and have access to savings on a routine basis from a wide range of merchants. The savings can change, and new deals can be offered. Registered members have easy access to many companies at all times.