Welcome to the latest edition of my new weekly blog series, “Free Marketing Ideas”. Each week I will identify and explain a simple marketing idea that you can employ at low or no cost. Last week’s topic was Create a Loyalty Plan.
This Week’s Topic = Groupon and Living Social
If you have not heard of Groupon or Living Social by now I would be very surprised. But nevertheless, they are competing coupon services that partner with companies to create and publicize deep discounts. They have built up enormous email distribution lists of people who are looking for discounts from companies all over the world.
While the height of their popularity is likely already passed, many companies continue to use Groupon and Living Social successfully.
Getting started is simple, as long as you are willing and able to offer significant discounts. You can contact a sales person responsible for your area, they are usually geographical, and find out if there is interest on their end. As long as you are offering something that people want, and it’s not too expensive, there will be interest.
Then, you will work with them to customize the deal that your company will offer. It is common to discount your product or service by 50% or more.
The rest is up to them. They will write the copy, which you will approve. They will announce the offer to their lists. And they will manage the sales process.
Customers pay through Groupon or Living Social, and then they will pay you in increments. They will also take a percent of the sale for doing all the work and exposing your company to their customers. This is usually about 50%, but can be negotiated lower depending on the popularity of the offer.
And that’s all there is to it. It can be a great way to gain exposure for a product or service, and reach new customers that you cannot afford to reach with your own marketing. And the only cost is the share that Groupon or Living Social will keep as commission. But since it is just a percentage of the money that you are already making, there is no commitment on your part.
Share your thoughts on this idea, and other free marketing ideas in the comments section below and keep the conversation going!