Nearly one-third of all daily-deal sites nationwide—or 170 of 530—have shut down or been sold so far this year. Companies such as Facebook Inc. and Yelp Inc. that could capitalize on their large audiences to build a daily-deals business have recently pulled back on the service.
3 questions to ask when considering whether to offer a Groupon or other local deal:
- What is your goal?
- Are you prepared to handle a sudden flood of deal-seeking customers?
- How will you convert these new prospects into long-term customers?
Answer these questions BEFORE you split the proceeds and pay for the privilege of having your business swarmed by deal-seeking one timers. While half off deals and coupons can be a good way to make people aware of your business and generate a burst of traffic you want to go in with your eyes open and expectations set accordingly.
