When working with small businesses a lot of people want to know about how the coupon sites work. So I’m going to give you a broad overview. Please note, I am not representing any of these sites and their programs may change without notice.
A coupon site wants you to offer your good or service as a drastically discounted price. Typically 50% or more off your normal selling price.
They will send out notification of your deal to their email subscribers and publish it on their website. Take note that some sites have regional and local sites as well as national ones. Make sure you know where your items or services will be published.
Take note of the amount of time the purchaser will have to redeem your deal. Can you keep up with this demand? If everyone “cashed them in” at once would you have a hard time fulfilling orders? Make sure the details on your deal specify that you have the right to delay orders or services or they are subject to availability.
Once you deal has run its course, the website will send you a check for half of the sales amount, minus a credit card processing fee (typically 3%). So, keep in mind you are discounting your services and then only receiving a portion of the sales proceeds.
Using a coupon site will get you increased exposure. Customers who would have never discovered you otherwise now have a way to learn about and try out, your services at a lower entry point than they normally would. However, this doesn’t mean these are the types of clients you want to reach. You may tot have control over their demographics, location or future purchase capability. So, statistically you may not gain a lot of new clients.
Also, many clients will buy a deal and then never redeem it. In that case you will receive money for no services provided.
The decision to take part in a coupon site is a personal one and you need to determine if it meets your business goals. However, reading the fine print and going over every scenario is critically important.