This is how couponing model with DealDey works.
You offer your product or service at an extremely discounted rate (30-50% off usually) taking advantage of the distribution power of the site’s mailing lists and the ability of the deal to spread virally through social media.You don’t pay ANYTHING for people who will never view the offer, or for people who view but never purchase the offer, but who may still develop brand recognition. Your only cost is a percentage of your sales, and some revenue loss from the discount. You only pay for people who have paid something to come to your restaurant (or salon, etc.)Say you use DealDey, which we will assume has an e-mail database of 100000 people
- 100000 people see your offer, and brand, in their inbox
- 400 buy the offer
- 200 of them re-post the offer on Twitter and Facebook. Assume each of them has at least 100 friends, giving a potential brand impression for 2,000+ people.
- 50 people who see the offer via Twitter or Facebook in-turn buy the offer. Some of those people re-post the offer to their 100+ friends.
- While 100000+ people may have received an impression from your brand, you only pay for the
- 450 who have spent money to come into your business.
Do you see the potential here? Good.
Keep in mind…
- Don’t create a deal that will bankrupt you. I’ve heard stories from multiple people about a certain local restaurant that launched a DealDey deal and then refused to accept the vouchers, angrily proclaiming that the deal was putting her out of business. (By the way, if that ever happens, DealDey will refund the buyers.)
I was refunded on about two occasions when the deal was not fulfilled by the Merchant.
A lot of people are going to buy your offer at the discounted rate. Take your costs into consideration. - Be aware of the long-term. A customer who purchases a voucher to your business can wait up to 6 months to redeem it – they’re loaning you payment in exchange for product in the future.
Don’t forget about the 200 people you owe spa sessions to in 4 months time.
I have had deals on DealDey myself and they worked out really well for my side hustle then.
Give it a try and it might be worth it.
To register as a Merchant, Sign up at http://merchant.dealdey.com/
Till Next time...
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