
Local business owners get lots of people calling them to sell them advertising. If you are a CityVoter business, chances are you operate your business in a city where "group buying" advertising companies are growing quickly. There are really a lot of these companies out there. I chose to highlight a few above for your reference. They are:
GroupOn,
BuyWithMe, and
LivingSocial. My goal is to give you a simple overview of how they work, but it's not that simple for business owners who aren't familiar with the opportunity. If you're interested in doing one of these deals, be sure to spend a lot of time on the phone with the sales rep so you fully understand what you're signing up for.
Here's how group buying deals are designed to work for businesses.
1) A sales rep will call you and ask you if you want to create a fantastic deal to drive customers to your business.
2) If you say yes, they will guide you through creating a really compelling offer. This is not a coupon, it's a one-time ridiculous deal...like half off a service or a buy one get one free or a new customers free. Think "free" or "half off". For example, lots of spas give 50% off spa services. Dentists charge only $5 for all new customers.
3) The group buying site will negotiate with you a cut of the deal. These sites make money on the "spread". For example, if you normally charge $200 for a new patient office visit and the deal you set with BuyWithMe is $50 for a limited time only. BuyWithMe will take a % of the $150.
4) You will also work with the sales rep to determine how many people are allowed to take advantage of this deal and when it is available. Once you know what the deal is, you'll have a better sense of how much this promotion will cost you. Since it costs you no cash up front, you'll need to think about how many deals your business can afford to offer.
5) Finally, the group buying site runs "deals of the day". They will email thousands of local consumers the day you want your deal to run. They will collect payment and advertise your deal on other sites. If it sells out, they will process consumers payment.
Advice:
1) These companies all vary in size and they all need to grow fast to keep consumers interested in their deals. You can negotiate and you should.
2) These are promotions. Think of these as promotional dollars. Use them WHEN it is appropriate for you business, not just when a sales person calls. Is back to school a good time? Is the New Year? Mother's day?
3) Create your own email list. These businesses solve a problem for a lot of businesses who cannot direct market to their own customers because they don't have their customers' email addresses. Collect your customers' email addresses. They can be a great source of new business. Offer them a ridiculous deal for referring new customers. You can afford to do this more often.
4) Use CityVoter free "Insider Deals" when you're not using group buying promotions. We want you to be able to offer deals all year that help grow your business. CityVoter's Insider Deals are a great way to promote your business. If you need extra promotion, check out GroupOn and the companies above.