It’s distressing to learn that almost 60% of companies that used Groupon once would NOT use it again. It suggests these companies were hoping Groupon would be the ‘magic bullet’ for marketing malaise. It also suggests, to me, that some people in business are either more indolent or ignorant than I’d like to think.
How To Make Money with Groupon or Living Social or . . . Yes, It IS Possible!
Key 1 of 3: Don’t Give Away More Than You Can Afford. The beauty of any ‘deal’ is that you’re moving your ‘cost of sales’ to your ‘point of sale’. Instead of the ‘pay now / pray later’ (for results) you only pay when you actually generate business. That’s HUGE!!
But you still must know what you need to make to cover your hard costs. Even if you only ‘break-even’ on a promotion but you increase traffic, you will make money sooner or later on these new people who come into contact with your business.
Know Your Margins . . . Cover Your (Hard) Costs