My First Groupon & Thoughts on Promo Ideas

[Becca_in_MD]

I bought my first Groupon today (if you want to know more, I can probably figure out how to send you a referral link). If you're not familiar with Groupon, a merchant offers a special deal, ie. $40 worth of food for $20 at a restaurant. Enough Groupon members have to buy into the Groupon for it to be a "go." If not enough buy it, then no one gets it.

It got me thinking that it could be a good idea for a promo. It could work like a mystery host thing that enough people need to agree to collect orders for it to work, but then they have to actually do it. Maybe it would be better with a sale idea. Just not sure enough people are familiar with Groupon for them to understand the idea and probably Groupon is copywrighted. Maybe a "I need to sell xxx Deep Covered Bakers for everyone to get a Mix N Chop for free." This could work with the way the host discount levels increases as the sales increase.

Hmmmm....

 

[Teresa Lynn]

LOVE groupon, I bought bath junkie $50 gift certificates for $20

 

[Admin Greg]

I'm sure there are pros and cons to using a Groupon-style promo for a direct sales business. Here are a few thoughtsros:1. Attracts new customers: Groupon is known for bringing in new customers to businesses. By offering a special deal through the platform, you could potentially attract new customers who may not have heard of your business before.2. Generates buzz: Groupon promotions often generate a lot of buzz and excitement. This can help create a sense of urgency and encourage people to act quickly to take advantage of the deal.3. Increases sales: If enough people buy into the Groupon deal, it can significantly increase your sales for a particular product or service.4. Can be a good way to clear out inventory: If you have excess inventory that you need to move, a Groupon promotion can be a good way to do it.5. Cost-effective marketing: Groupon takes a percentage of the sales, so you only pay for the promotion if it is successful. This can be a cost-effective way to market your business and products.Cons:1. Can be costly: While Groupon may seem like a cost-effective marketing tool, it can actually be quite costly if the promotion doesn't generate enough sales. You may end up losing money on the deal if not enough people buy into it.2. Can attract bargain hunters: Groupon is known for attracting bargain hunters who are only interested in the deal and not necessarily in your business or products. This can result in low-quality customers who may not be interested in purchasing from you again at full price.3. Can devalue your products: By offering a significant discount through a Groupon promotion, you may devalue your products in the eyes of customers. They may start to expect discounts and may not be willing to pay full price in the future.4. May not be a good fit for all businesses: Groupon may work well for certain types of businesses, but it may not be a good fit for all direct sales businesses. It's important to consider your target audience and whether they are likely to use Groupon before implementing this type of promotion.In conclusion, while a Groupon-style promotion may have its pros, it's important to carefully consider the potential cons and whether it is a good fit for your direct sales business before implementing it.