So You Want To Generate Extra Business Via A Coupon/Voucher Website? Answer These 4 Questions First

If you own a small-medium sized business and you’ve seen coupon/voucher sites like,, advertise other small-medium sized business with TV ads and half page ads in the NZ Herald, then you must be thinking “how do I get me some of that?”

They are offering you the potential to make thousands of sales and expose your products/services to 10’s of thousands of people.

But before you get too excited, consider these 4 questions first.

Question #1: Are you happy with ZERO profit margin?

The first thing you need to do is decide if you are prepared to offer a discount of 50% to the public and provide 10-25% to the daily deal site as a commission, leaving you with 25-40% of your normal rate.

I’m guessing that is probably at (or below), your profit margin?

That’s right, plan to do no better then break even on your first try.

Question #2: How much business can you handle without being crushed to death?

Set the maximum number of customers you can handle.

Is it 10?




Be realistic. Using a lawn mowing business as an example, 1000 customers wanting their lawns mowed next month at 25% of your normal rate will crush your business and probably piss off 990 of those customers.

Question #3: How will you make a profit?

The third thing to do is work out how you will upsell your other services (on which you collect your full profit margin).

You also need a strategy to lock in those customers long term.

For a lawn mowing business example, you could ask them to agree to a mowing schedule for the next 12 months, set those appointments in now, and get them to fill in an automatic payment form on the spot.

Question #4: Which daily deal website should you sign up with?

Contact all the daily deal sites and make your proposal. Most of them will turn you down (for their own reasons), but perhaps one or two will accept.

Good luck!

What do you think of this advice?

If you own a small-medium sized businesses and you’ve tried offering a daily deal, what did you learn? What advice do you have for others? Share your story in the comments below.

2 thoughts on “So You Want To Generate Extra Business Via A Coupon/Voucher Website? Answer These 4 Questions First

  1. This is so true. The only way the voucher sites make their money is by mass selling! That leaves the business to over promise on what they can deliver and at the end of the day a consumer who goes to the effort to buy vouchers, gets burnt resulting in the consumers never using the business or voucher website ever again.
    Seriously.. A lawn mower can only mow so many lawns a week and when you have to wait 7 weeks for the next available slot, it’s too late.. The lawns have outgrown the house!
    If only the voucher sites had their clients and consumers in mind rather than just lining their own pockets!

  2. We have a mall-medium sized business and I contacted several One day deal sites. I have to tell you that Grab One offer the best deal and FORGET Groupon. They wanted is to offer $405 worth of service for $129, taking 30% – 50% of the profit, paying only 30% of the money within 5 days and the balance of voucher payouts as they were presented. I told them where to go and so should every other business . This is sheer exploitation for their own gain !!

    Business is about value for money and service… Groupon claim because they are the first and the biggest worldwide that they can dictate the game. Well tell me what gives Groupon the audacity to ask for 30% – 50% of the sale ? All they are doing is stealing the profits of hard working, honest business people who want to grow a business,offer employment and earn a decent living. Shame on Groupon !!!! Avoid them like the plague, they are killing honest businesses in NZ.

    Support Grab One, they offer what I call “conscious business practice”.

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