One of the most interesting developments of the Internet in recent years is the proliferation of daily deal sites. These sites come in many varieties, the most common three are: coupon sites like Groupon and Living Social, 24-hour sales like those featured on Woot, and software giveaways like Giveaway of the Day or Amazon’s Free App of the Day. This article examines the pros and cons of utilizing these sites for your business, including exposure and profitability.

No Such Thing as Bad Press: Profitability vs Marketing

Since the appeal of daily deal sites to consumers is getting a product or service for cheaper, chances are that the deal itself won’t be very profitable for your company. Furthermore, most sites charge a steep commission to be featured on their site (up to 50%). Resulting, most companies report a large increase in revenue but little change (and sometimes even a loss) in profits. The logic is that offering a deal is largely a ... Read more »