A daily deals website offers numerous types of discounted deals to consumers that they can use on both offline and online stores. The deal can also be for either a product offering or services. As the daily deals website does not own any franchise or brands whose deals it sells, it is mostly an asset-light multivendor business. Below, I have discussed the revenue model of Groupon, one of the most popular daily deals site in detail.
Groupon is a successful player in the daily deals industry. Back in 2008, co-founder of Groupon, Andrew Mason came up with an innovative idea of gathering all the deals available in a local market and putting them online for better leverage. The site also notified that how many customers are showing their interest in the online deals.
Groupon works with only one revenue generation channel, and that is a 50% commission cut from what customers pay to merchants. All other services provided by Groupon, including deal listing on the website, tips to merchants on better deals, etc. are free. But since the deals are so profitable and so many people buy them, Groupon has no trouble making huge money.
In all general circumstances, companies do not reveal their business model. So below is a representative business model of daily deals websites.
A dailly deal website can use the following revenue channels:
● Featured Listings
● Monthly Subscriptions
● Exclusive Partnership
If you are planning to start your own daily deals website then you can choose a readymade solution instead of building it from scratch. This is because not only readymade solutions are time and cost efficient but they are also much better than developing a custom website that will require deep research on features.
Below are some popular daily deals software:
● Daily deal builder
Yo!Deals is the perfect solution to set up and run a deals-based website that can sell products too & offers the best experience to merchants as well as customers.
Admin is the owner of the website, who owns the website and makes money from sales of deals and products and by ad revenue & merchant commissions.
The solution allows merchants to create and edit deals.
Yo!Deals comes with a robust front-end with a smooth navigation to help buyers find the required deals.
● Option to sell both deals and discounted products
● Easy voucher redemption
● Easy to browse and search the best deals
● Responsive System which is easy to access and offers the best experience
● Payment Gateway Integration — PayPal Standard, Credit Card & CIM
● Affiliates management
ActiveCampaign is a marketing and sales automation platform that helps growing businesses meaningfully connect and engage with their customers. Its SaaS platform enables businesses to create optimized customer experiences by automating many behind the scenes processes and communicating with their customers across channels with personalized messages.
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