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Daily deals are everywhere. Here's your primer.

Daily deal websites are quickly becoming an essential marketing tool. Each day these sites send out deals to millions of bargain-hungry subscribers. Now there’s evidence of a real payoff for restaurants that participate: A recent Technomic survey found that 48 percent of deal buyers used coupons at restaurants they’d never visited. What’s more, 67 percent of those customers returned to the same restaurant later without the incentive of a deal. Here are a few deal programs to give you a lay of the land.

The Heavyweights ... The Newbies ... The Locals
Daily Deal siteDeal distribution channelsCommission rateCustomer reachBest featuresDrawbacks
Yelp DealsFeatured on business’s Yelp page; mobile apps; shared on social mediaNo upfront costs; 30% of discounted price for each deal purchased50 million monthly to Yelp.comIdeal for reaching U.S. local markets; heavy traffic from restaurant customersDeals aren’t sent directly to potential customers; Yelp scaling on deals
GrouponGroupon.com; daily email; mobile apps; shared on social mediaNo upfront costs; fee subtracted from total quantity of units sold115 million subscribersHighest volume of users, very established deal providerRejects some businesses; rate may be high for small businesses
Living SocialLivingsocial.com, daily email; mobile apps; shared on social mediaNo upfront costs; commission negotiable; payment due after promotion30 million subscribersInstant Deal engages in real time via app; buy-three-get-one-free incentiveRejects some businesses; rate may be high for small businesses
Restaurant.comRestaurant.com; daily email; social mediaNo cost to participate3.5 million subscribersTailored marketing services; specializes in restaurantsNo online registration; relatively few subscribers.
ScoutmobScoutmob.com; daily email; mobile app; social mediaNo upfront costs;  charged at point of offer redemptionNot availableHigh number of deal offers are claimed by buyersOnly serves 13 major cities; no pre-payment of purchased vouchers
Google Offers BetaGoogle.com/offers; daily email; plans for more distribution channelsNo upfront costs; percentage of revenues shared not publicly available  Not availableHigh visibility; in some cases merchants paid for sold but unused vouchersCurrently only available in eight cities
BloomspotBloomspot.com; daily emails; shared on social mediaGuarantees profitability; commission rate not publicly available. Over 1 million subscribersTargets the affluent; provides incentive to spend over voucher amountCurrently only serves 11 cities; focuses primarily on high-end restaurants
NY Daily NewsFeatured on NY Daily News daily deals page; shared on social mediaNo upfront costs; commission rate not publicly availableNot availableAdvertising in widely-read news sourceCustomer reach limited to New York metro area
The Washington Post Capitol DealThe Washington Post, Express, Washingtonpost.com, thecapitoldeal.comNo upfront costs; commission rate not publicly availableNot availableAdvertising in widely-read news sourceCustomer reach limited to Washington D.C. metro area
Conejo DealsConejodeals.com; daily email; shared on social mediaNo upfront costs; most commissions are typically around 50% but are negotiated on a case-by-case basis17,000 subscribers to daily email, 90% are localIdeal for reaching local subscribers (subscribers to daily emails live and work near featured businesses); for every deal, $1 is sent to local charitable organizations and schoolsCustomer reach limited to California’s Conejo Valley (LA’s largest suburb) and surrounding communities

 

 

 

 

 

 

 

 

 

 

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