Bought a group deal site recently that was doing ~$20M a year a few years ago that has since turned into a shitshow.
The one problem with their model is that gross margins for the business suck which means it has to be run very lean, large, and effectively.
Has anyone seen a group deal site pivot or create additional revenue streams in ways other than what effectively amounts to commission on sales they generate for vendors on their platform(s)?
Looking at launching our own products on the platform, as that doubles GM but I'm trying to think of other ways to monetize existing users as well.
Probably can't sell data purely because the company is too small.
Ideas?
I'm sure you could sell data if it can accurately depict cons. behaviors. Hell, 90% of all software-silicon valley "entrepreneurs" use that model for whatever app their college housemates have cooked up. It is definitely a possibility, especially if its with local marketing shops.
I used to work in a somewhat similar company (not exactly full discount coupon products though). Is there an opportunity to proactively market these deals from vendor to consumer in a way that you could charge a service? (eg, customer keeps searching for spa's, you generate commission not just on the sale of spa coupon but for targeting that user with ads for the discount and other services)
You mentioned that you guys are screwed and have to be run lean, just spit-balling an idea that I know can generate some sort of product differentiation, maybe not to scale up, but at least an alternative revenue source. Not many companies will pay for it. However, if you can get a vendor on board and deliver measurable results above the service you already provide, they may lock-in.
Could backfire though, some customers hate being targeted by ads, and you can run the risk of pissing off some of your clients
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