How it works
- Reach a lot of potential new customers
- Business when you might otherwise be quiet, especially if bookings are required and you’ve set the expectation that your busy times are excluded from the offer
- Search engine link juice – a link from a fairly high pagerank site – the previous deals pages hang around for a while
- Able to set minimum and maximum quantity, overall and per person
- No initial cost outlay
- Unless you can turn those customers into repeat business you may be losing money on each one
- Need to give a large discount to capture attention
- Deal site may keep a large percentage of the sticker price
- Might have to wait a while to receive payment from deal site
- Can’t be overdone or you risk undermining your revenue permanently
Questions to ask
- What’s the revenue split?
- How soon is the money transferred to me?
- Do I get the customer’s email addresses (or have to acquire them myself)?
- Do you have any data on whether deal customers become regular customers?
- What percentage of businesses have expressed an interest in running another deal?
For consumers, this is a good list of caveats.
Have you tried one of these sites for your business? How’d it go? Care to share in the comments section below?
Just looking for a global list of daily deal sites?
image credit: Megan Soh via Creative Commons on Flickr