The Groupon Effect on Small Business
BrandMakerNews – June 6, 2011
By Tia Jackson
With all the buzz around Groupon, entrepreneurs all over the country are wondering if they should offer deals on these popular discount sites to promote their small businesses.Sure business owners have to offer their products for 50% off, and then split the remaining revenue with Groupon – but the ability to reach thousands of local deal-seekers, and the thought of selling hundreds of products off of one email – is enough for anyone to want to give it a try.
But does Groupon actually work? What impact are these coupon sites really having on companies? Are small businesses making money on these deals? And–Is the promise of new customers too good to be true?
To get to the bottom of this, the BrandMakerNews team asked dozens of entrepreneurs [including Emerald Smoke] to discuss their experience using Groupon to promote their businesses. Before extending your own offer on Groupon, read the insightful tips below to make sure that advertising on Groupon (and similar discount sites) is a smart move for you.