4 Easy Ways To Lose More Than You Make With Groupon

Its hard to imagine a world without coupon sites anymore. You can buy everything from dinner reservations to hotel reservations, and everything in between. I’ve talked quite a lot about coupon sites here on Virtual and have read a variety of opinions on the subject – are they good for business or bad?

Dig Deeper: The Pros and Cons of Using Groupon

Dig Deeper: Using Social Media Coupons To Bring In More Business

Yet no matter what side of the fence you are on, one thing is for sure. They will not go away anytime soon.

If you are looking for new ways to bring in traffic this year, coupon sites may be a great way to get more people in the door. Keep in mind there is a right way to it … and a wrong way. If you learn how NOT to use coupon sites, you’ll have a greater chance at using them successfully.

Money Losing Strategy #1 – Sell Your Basic or Most Popular Product

Groupon and other social coupon sites are designed to introduce you to new customers, bring existing customers back in, and build up a new revenue stream. If you use it to connect up with your regular customers and offer them a discount on what they already buy on a regular basis, you’ll be severely cutting into your expected profit margins. Instead, think of Groupon as a way to test out new ideas. If you are a wedding photographer, maybe you would love to get into Trash The Dress sessions after the big day is over, or Love Portrait sessions taken of happy couples throughout your community. Invent something new and make an offer. This will bring in new clients for your new idea, and give you a way of building up an entire new area within your existing business.

Money Losing Strategy #2 – Sell Long Term Products and Services

Groupon works best when you sell today and bring the people in tomorrow; not next week or next month. The goal is not to have offers trickling in over many months down the road. Instead you want to find something that immediately brings people in to connect with you. The longer they wait, the less chance you have of making a connection. [Read more…]