Lots of new data coming in about Groupon, LivingSocial & the rest of the Social Coupon Sites. Like the fact that 40% of Groupon users would never use them again.
On the other hand, Amazon had over $110 Million worth of sales in one day thanks to Groupon or that they invested $176 million. Or the fact that Google was considering buying them.
Lots of people are saying that they are the next big thing, others that it’s just a fad that is going to disappear soon.
As a business model, these companies have it great. Their only cost is the website, the coding and set-up of offers (which frankly, would only take 1 person at most) and the cost of acquiring new accounts. Their take? 15% of each sale – and like 3% or so goes to their gateway services. So 12%. A mildly successful coupon site that pushes say 100 $20 coupons just netted itself $300 in revenue, $240 in net not including other services.
The other side? The customers… meh. Make sure you have a good product or service and you’re off. Service sector companies would work well especially if you’re launching. Introducing a new service and ‘filling’ your blank spots are great – ditto on perishable goods.
For non-perishable products – now that’s more debatable. Would it be worth it? I’m not sure. Gut feel – probably not. Certainly not like Groupon; where you have no control over the number of coupons. The others are more flexible, which allows you to control your cost.