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How do Daily Deal Website make money?

Discussion in 'General Marketing' started by subtle, Jan 5, 2011.

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  1. #1
    Simply put, How do Daily Deal Website make money? As the prices are already drastically reduced, they cant be taking much of a cut from each deal could they?

    All help is appreciated!
     
    subtle, Jan 5, 2011 IP
  2. spyka

    spyka Greenhorn

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    #2
    I guess it all adds up. If you make $1 of profit per person, then 100 people that's $100. If you have say 10 deals a day which 100 all use, that's $1,000 a day
     
    spyka, Jan 5, 2011 IP
  3. roy77

    roy77 Active Member

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    #3
    They come into individual agreements with businesses, sell their product/service as a "deal", and take commission from all sales :)
     
    roy77, Jan 5, 2011 IP
  4. mg1313

    mg1313 Peon

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    #4
    Groupon takes up to 50% from the discount the businesses are giving to customers. So, if a business advertise 80% reduction in price, 50% from the reduction goes actually to Groupon, while the customers gets that 80%.
     
    mg1313, Jan 5, 2011 IP
  5. pradiprg

    pradiprg Active Member

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    #5
    It is all right in arithmatics to calculate on any number of deals. But that must happen in reality- otherwise those projections are useless.
     
    pradiprg, Jan 5, 2011 IP
  6. shopsmartcanada

    shopsmartcanada Peon

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    #6
    put it this way, they started with 4 people late 2008 early 2009 and have over 3000 employees and infrastructure and tons of cash in that short of time, they must be doing something right!
     
    shopsmartcanada, Aug 2, 2011 IP
  7. Youmax

    Youmax Active Member

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    #7
    excuse me..? :rolleyes:
     
    Youmax, Aug 2, 2011 IP
  8. readgood

    readgood Peon

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    #8
    why??how do you think?
     
    readgood, Aug 2, 2011 IP
  9. BucksHunter

    BucksHunter Active Member

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    #9
    How you can bring visitors that will buy your $1 stuff?
    And what the stuff?
     
    BucksHunter, Aug 3, 2011 IP
  10. 88dbsakthi

    88dbsakthi Peon

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    #10
    I think ,this will be counted with person to person but with the total amount of orders generated. Its works as the percentage of commission.As per every business/person the commission percentage will be fluctuates.
    First you have to find the vendors and make mutual agreement
    Get the deals and discounts information from the vendor
    post this deals with your website and get orders
    Deliver the deals to the customers


    The best part is ,you always have constant contact with your vendors for update and proper work completion
     
    88dbsakthi, Aug 3, 2011 IP