Deals websites - whats their commission

YouProduce · 13-12-2010 6:04pm #1

Hi All,

Does anyone know what commission deals websites like Groupon/citydeals or LivingSocial take off the purchase of coupons? I can't seem to find it anywhere when I google, despite the huge amount of literature on the subject. I presume it couldn't be more than 10%!?

zAbbo · 13-12-2010 7:40pm

More than 10% and they only pay suppliers when the voucher is redeemed. Groupon take 50%.

YouProduce · 13-12-2010 9:13pm

Thanks zAbbo,

Wow! I had a suspicion that it was something like 50% - thats amazing, no wonder they are rolling in it; can't believe they can get away with that when their business model is so replicable.

jhegarty · 13-12-2010 9:17pm

They must have massive adversting costs.

I see a living socal add about 10/20 times a day.

zAbbo · 13-12-2010 9:48pm

YouProduce wrote: »

Thanks zAbbo,

Wow! I had a suspicion that it was something like 50% - thats amazing, no wonder they are rolling in it; can't believe they can get away with that when their business model is so replicable.

It's a numbers game, so member growth is hugely important. The basic model may be easy to copy but only those sites that are pushing big visitor/buyer numbers can survive. The smaller imitation sites will die shortly.

jhegarty wrote: »

They must have massive adversting costs.

I see a living socal add about 10/20 times a day.

They invest heavily in re-marketing also, which is more likely what you're experiencing.

StupidLikeAFox · 14-12-2010 2:29am

Cant be doing too bad when they can afford to turn down $5bn!

http://www.siliconrepublic.com/business/item/19446-groupon-rejects-googles/

Atlas_IRL · 14-12-2010 8:41pm

Groupon is the fastest growing company in the world.

Deals websites - whats their commission

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