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Saturday, May 25, 2013

Pros and cons of daily deal sites for small businesses

Daily deal sites help startups and small businesses gain market exposure
Daily deal sites help increase small business traffic and sales 
Whether the site is going to stand on its promise or withdraw the offer depends on the minimum number of customers admitted for the same. One of the pioneer sites in the genre was Groupon, with sites like Eversave and Woot soon following lead. About 83 million customers subscribe to these sites each year. Experts say that the market of daily deal sites has huge potential, especially for small, start-up companies looking to make it big in the retail sector.

Potential benefits for small businesses

The potential market of the daily deal sites can be easily estimated, by the following statistic estimated by experts that the total revenue generated by the daily deal sites at the end of 2015 will be around $3.9 billion in United States itself. Almost all the sections of the society seem to be interested in saving money in the current global economy. This increases the scope and opportunities where the concept of daily deal sites can flourish. Small businesses can utilize the opportunity to drastically increase their client base and get free marketing with the help of these daily deal sites.

Excellent advertisement platform

The main feature that small industries should focus on is the free platform to advertise their products, hence the wave of daily deal aggregator sites like this. This mode of promotion is sure to attract maximum number of customers, as the deal comes with the added incentive of saving money. This mode of advertisement reaches a much larger and genuinely interested public, surpassing all the other conventional modes like posters, radio, or newspaper. Also, it is less expensive and guarantees the purchase of your products instantly which is not possible by the use of any other media of marketing.

A contract with daily deal sites will get your product right at the same pedestal, as a large multinational company’s products without having to pay anything for it. This huge marketing stunt is very useful in small cities where the sites reach each and every household catering to all the sections of the community.

Dos and don’ts of daily deals

With little knowledge about the market strategies on which these daily deal sites work, you can easily use one to benefit your small enterprise and not against your prime interests. There are few basic things that you should avoid in order to achieve your sales targets utilizing the marketing force of the daily deal sites. Some of these dos and don’ts are mentioned below.

The daily deal sites can escalate your sales many folds. But you should never keep very high expectations and always keep your sales margin minimum, taking into consideration the increasing traffic of other similar companies to their sites. Maintain honesty as you will not be able to maintain the initial traffic frequency if the customers are not satisfied with your deals. Keep a highly trained staff to handle the incoming customers after your deal has gone live and always stick to the promise made to the customers even if you have to incur initial losses.

About the author: Johnny is a deal expert and a savings fanatic, find out how he can stretch budget for travel, entertainment, dining, retail and much more via his various advice columns.

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