Can a deal-of-the-day help your business? Take stock before you sign on. “Make the economics work for you,” said Justin Silva, social media manager for the Archer Group.
- 1. Shop around.
There are lots of sites out there now, both local and national. The size of the subscriber list—which provides visibility—may affect your choice. Remember, too, that many subscribers will share the deal with friends who may not be subscribers.
- 2. Compare the terms.
LivingSocial is not known for negotiating the split, typically 50-50. Groupon has negotiated if the service involves a high-priced element with an out-of-pocket expense, such as a cosmetic laser. Some pay you the funds in increments. Others have a faster turnaround. Terri Kerner of Via Day Spa has waited up to 60 days for the full proceeds of a Groupon offer. Find out if you have to pay credit card processing fees.
- 3. Consider the offer’s price.
The first time Ryan’s Wine & Spirits participated in a LivingSocial promotion, customers paid $10 for a $20 voucher. The deal garnered 425 sales. The next time, the deal was $7 for a $15 voucher, which bumped the response up to 1,000 sales. Silva says consumers may feel more comfortable forking over $10 or less. That way, if they forget to use the voucher before it expires, they’re not out as much.
- 4. Take timing into account.
You’ll see the most activity within two weeks after the deal is redeemed, says Joe Van Horn, operating manager of Chelsea Tavern. He selected a time period that covered traditionally slow seasons, such as summer. “You don’t want the offer to start or finish during an already busy period,” he said.