Lendinero's blog on Growing Your Business
Coupon sites are ideal if you are selling to women. Women are the largest online shoppers and if you are not catering to this market online you are missing out on a lot of opportunities. There are numerous of coupon sites out there and the largest ones are www.groupon.com and www.livingsocial.com. How do I know this works? Once I had the opportunity to consult a massage spa. We ran a campaign on www.groupon.com. In the beginning I thought more men than women would buy the massages. I was wrong. Over 65% of the coupons bought were from women. Women are ideal to sell to online. The coupon sites can be expensive because you end up paying the cost of the advertisement in the back and not the front. What do I mean by that? The coupon sites don’t charge you anything up front but they want you to provide a 30% to 50% discount minimum on the products or services you sell. Second, they will keep around 50% of all earnings. If you sell a product normally for $10 and you have to discount it to $5.00, you are down by 50%. If the coupon site keeps 50%, you will only make $2.50 cents. That’s a huge discount. However, there is another perspective to this. Normally a good campaign can attract 100 to 300 new customers you never had. You are paying for new customers and customers you never had. Once you get them as customers you can make money from upselling other services and products or bringing them back as regular customers. This is why a small business loan can help you. You will need to make an investment to see a return on investment if you go on the coupon sites. It will take you 2 to 5 months to convert these customers into regular customers. A small business loan can help you while you get paid from the coupon sites, to purchase more products if you upsell, and to convert these customers into repeat customers.
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