Groupon is a solid advertising platform, has a good reputation among consumers, and is easy for business owners to start using. In the short term, Groupon (and similar sites) can be a powerful and effective way to generate new leads for your business.
In a survey-based study of 150 businesses that ran and completed Groupon promotions between June 2009 and August 2010, we find that the promotion was profitable for 66% and unprofitable for 32% of respondents.
Cons to Groupon
Groupon does offer caps on offers so as not to overwhelm the business. Groupon keeps 50% of your profits. If your business is already offering a 50% discount, and then losing 50% of its profits, your business needs to be prepared for any potential loss. Customers don't always return.
They technically don't collect money from the merchants they work with – just the customers who buy Groupon deals. How much a business will make by working with Groupon starts with the sales price for the deal. Groupon popularized the concept of offering deals with a 50% off sales price.
Groupon Advertising Cost
Groupon does not charge an upfront fee to create and run deals on their site. Instead, they collect 50% of the sale of each voucher. Groupon sends the amount earned through sales, minus their 50% cut, to merchants via check or electronic funds transfer (EFT) every month.
Groupon is a solid advertising platform, has a good reputation among consumers, and is easy for business owners to start using. In the short term, Groupon (and similar sites) can be a powerful and effective way to generate new leads for your business.
In general, Groupon is safe to use due to the fact that businesses need to partner with the site to post an offering, and if there was any issue, after a handful of people noticed it, any fraudulent offers would be removed immediately. ... Groupon is secure because they look into the businesses they partner with.
Groupon generates money through the sale of vouchers and card-linked deals, which connect consumers with local businesses. The company also sells goods directly to consumers in many cases. Groupon has shifted its focus toward card-linked deals in an effort to streamline the process for customers.
How to Advertise on Groupon
The deals offered daily through Groupon start at 50 percent off and can go as high as 90 percent cheaper than the normal price. Groupon can offer such steep discounts because it guarantees business owners a minimum return on their investment and the possibility of becoming an overnight sensation.
How to Sell on Groupon in 5 Easy Steps:
Businesses profit from working with coupon companies by boosting traffic in their stores and encouraging first-time visits. Consumers benefit from direct cost savings for goods and services in the market. However, coupon companies themselves have to make money to survive and grow.
Nearbuy makes most of their money by charging 2% to 25% of the sale amount as a commission. In return for offering such huge discounts on the platform, the retailers get a large volume of sales. They also accept ads on the website which add to the revenues of the company.
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