Coupon site business model
Groupon makes most of its revenue by marketing and promoting businesses on its website. The platform acts as a middleman between potential customers and the merchants and charge commission on every customer referred to the business. That is — if out of deals sold by Groupon, only 70 were redeemed:. The revenue sharing percentage depends on the negotiations and the marketing tools utilized by the merchant.
These tools include product promotion, advertisements, deal of the day listings, etc. This is one of the most expensive tasks for Groupon as the company signs a different contract with different merchants. Every new market is tapped separately by the company. Everyone would agree that the ultimate source of income for Groupon is the customers referred to the merchants. The marketing costs include costs to acquire such customers. These are email marketing costs, referral bonuses, advertisements, etc. This includes compensation to the employees of administrative departments and other legal and accounting expenses.
Groupon business model has evolved from a model which utilized economies of scale and economies of networking where the discount was only available if a certain number of people signed up for it to a marketplace where deals are bought and sold.
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Written by Aashish Pahwa. A marketer, a dreamer, a traveler and a philomath.
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I prefer stargazing to spending nights in clubs. That is, if out of deals sold by Groupon, only 70 were redeemed:. MoviePass Business Model.
The 4 Types of Online Discount Websites You Could Start
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Please log in again. The login page will open in a new window. After logging in you can close it and return to this page. Businesses which considers customers' requirements and priorities when they manufacture and deliver their products fare better than the ones which How Does Groupon Make Money?
So, even if it had not occurred to you that you could use a coupon code, you are reminded of it. All you need to do is open up another browser window and search for a coupon. Usually, it is quite easy to locate a valid coupon and avail of an instant discount.
Introduction To The Online Coupon Businesses
There could be several revenue streams for a coupon website. But the primary revenue comes from affiliate sales, and secondary revenue is from advertising. This means that not just does the ecommerce website pass on money to the customer in the form of a coupon discount, it also passes on money to the coupon website in the form of an affiliate commission. In most cases, the advertising revenue for coupon websites is minimal. The jury is hung. Especially when couponing businesses are sensible enough to get deeply integrated into the social networks of their users and offer deals that actually work, we think that customers will prefer to buy from sites where they can apply coupon codes.
A Sample Coupon Website Business Plan Template
And that will encourage e-commerce businesses to keep offering coupon codes to remain an attractive destination. If nothing else, we need to see a couple of strong couponing players emerge and change the shape of the couponing landscape. If you are thinking about setting up a couponing website, focus on ensuring that you have a differentiator. E-commerce Trends and Issues. By Ajeet Khurana.