How Not To Run A Deal Site

2 replies
Is Living Social on a downward spiral?

LivingSocial Is All Kinds of ****ed Up
#daily #deal #run #site
  • Profile picture of the author TheBigBee

    The daily deal model is a joke! It can be a powerful tool for Warriors - while it's still alive.

    Warriors should get the smart business owner, you know the one who has turned down Groupon and Living Social and have that business owner call them up with a change of heart.

    "I want to run the dumbest deal you guys can sell me!!"

    When the deal is live and customers are stampeding in, ask each of them to text their number to a shortcode, with keyword, so as to opt-in to get EXCLUSIVE half off flash sale specials.

    They've opted in...

    98% of text messages are read within a 24 hour period amongst active cell phone users.

    They can now broadcast with permission any deal they want to run, whenever they want to run it.

    Not sure how much you could charge to set up this whole widget for the business owner - from setting up both Groupon and Living Social deals... But you can sure as heck pass along a lot of value if you execute.

    Maybe $X per subscriber per year and unlimited messages?...
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    • Profile picture of the author Norbi
      Originally Posted by TheBigBee View Post

      They've opted in...

      98% of text messages are read within a 24 hour period amongst active cell phone users.
      I always see this exact number being thrown around. The number that should be thrown around is, the number of responses they get. That's all that matters to the business.

      It's like "We have a 40% Open Rate!" Who cares when the click through rate is like 1% (not saying that is the case).

      Back to the topic -- Groupon/LivingSocial has built up huge databases of knowledge that the people that are being laid off built. When you have 1,000 of merchants that have run a deal in the past, you no longer need that much grunt work.

      Instead you are maintaining accounts, which is no where near as labor intensive as cold-calling. I know at different sales job, account managers were in a ratio of 1:8 new sales reps. So for every 8 sales people bringing in new accounts there was just 1 rep maintaining those accounts. It's not much different in the deal space.

      Either the business owner needs convincing, will do it again, or won't. Those are the only options, and those calls don't last long.

      And to add fuel to the fire, Groupon was one of my highest ROIs for my business.
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