It seems like after Groupon came out, many people have tried to copy the business model in their own way. This is a good sign, showing that the “daily deal” trend is here to stay.
For those, who are not familiar with Groupon yet, they like to get small businesses to work with them so they can send “daily deal” offers to their large data base of Groupon email newsletter subscribers. As soon as Groupon sends out the newsletter, the customers start purchasing the deals by the hundreds. This is a great way to get people through the door! Keeping them, is another story.
The downside of working with Groupon is that you have to discount greatly, like about 50% to 90%. After you discount your prices, you will also have to split that with Groupon, so all in all, you basically break even. Say your service is $100, you’d give it away for $50. Then you will make about $25.
Basically nothing, right? I’m not done yet though….
Remember you have to pay for fulfilling orders, so it is actually common for businesses to lose money on every customer.
However, you can just decide to use Groupon as a referral source or an upsell source, and make money from that.
Now, I am going to share with you a strategy that is similar to Groupon but will help you save money at the same time.
I am suggesting that you build your OWN email list and you can start sending out your OWN daily offers to your list. This way you can be flexible on how much you want to discount, and you don’t have to share your profits with any third party.
So how do you do this?
Part 1-Find the email software
First, we want to set up an email software platform. You can choose from: COMF5, Constant Contact, Mailchimp, and iContact. I like iContact because its $10/month per 500 subscribers.
Part 2-Start building the list of people
Second, start building your email list of people. One thing I do like about Groupon’s page is there opt-in box because it is simple and easy to use. This is also known as a “squeeze page”. All you have to enter is your email address so you can receive special deals right away. This allows you to capture people’s emails that just want deals. As a business owner, one of the smartest strategies you can implement is to build your own email list.
Now, I am going to share with you, exactly how you can build your email list.
The easiest way is to create a lightbox on your website. This way, as visitors come to your website you can have a pop-up window that has a sign-up form. This doesn’t mean you have to completely redesign your webpages, but it does require some technical knowledge. Just ask me, if you don’t know J
The point is that lightboxes are usually pretty easy to install. In fact, iContact and other providers actually include them as a feature. The only thing you would have to know is how to edit the website code and your good to go!
Okay, so by now you have the lightbox installed and you are getting ready to build your email list to start sending emails and making the big money!
Part 3- Making sure your email campaign is profitable.
Remember, you can’t just send out anything that you want. Nowadays, people are getting loads of emails and they are trying to fight through the noise of things. The main thing you want to make sure is that the customers will respond to you.
Here are the ingredients to stir-up a successful campaign.
Ingredient #1- The Headline
Make sure to catch the audience’s attention so you can get them to open the email. The top headlines create curiosity. Also, people always want to know what is in it for them so make sure you are able to answer this. The great thing about Groupon is that they have a whole team of writers who just write headlines. How cool is that?
Ingredient #2- The offer
What are you going to offer your clientele? You can promote a new product/service, promote a sale, try to provide value. Your goal is to create that “irresistible offer”. For example, Groupon mainly focuses on discounting. Keep in mind, this is not the only way, you could create a limited quantity, have high-end offers, special events, and buy 1 get 1 free offers.
Ingredient #3- Answer the Why? Question.
Make-up a compelling story to tell your target audience. This can just talk about the background of the promotion. For example, Groupon’s business model revolves around giving deals, so this is their story. What is yours? What are you offering your audience? What is unique about your offering? For example, say that you are having a sale, so the question is, why are you having the sale? Perhaps you just came out with something new, what’s the reasoning behind your new service?
Don’t overthink your story. It can be something really simple. For example, you could be having a sale for Thanksgiving, you could just be having a sale to thank your loyal customers.
Ingredient #4- The call to action
You want people respond to your offer, don’t you? Then let them know what they need to do. Groupon does a great job of this in their email offers. For example, say you want your audience to print out a coupon in order to receive the offer, then make sure this is stated in big letters in the email blast. The minute you leave something in doubt, is when you get people to opt-out. My suggestion is to repeat your call-to-action within your email for best results.
Ingredient #5- The deadline
You want people to take action right away, correct? Groupon does a great job of this with their clock. People always want to hold off on deals when they know that they won’t expire, but take that advantage away from them and they will make the purchase right away. What is the reason you are going to give them so they can act NOW? Create a deadline, or have a limited quantity so you can create a sense of urgency.
Some people will look at the email and then forget, so right before the offer is about to end, send another reminder email. This will allow them to take charge!
Remember, your list is the golden key to create this effect, and take your marketing efforts to a whole new level. Don’t feel intimidated to get started on this right away. Don’t forget your list doesn’t have to be as big as Groupon’s to make a profit.
I remember I had a client who only had 52 people on their list, but they were able to generate $1000 in 1 week!
Now, imagine using this technique for a year? How much money can you save by not using Groupon?
Try it and let me know JShare on Facebook