By now you’re most likely getting several Deal of the Day(s) emails from Groupon, LivingSocial or Google Offers to name a few. Touting that what would normally cost you $150 now will only cost you $75! Now there are certain restrictions and unless you’re a fine print reader, you’ll get a rude awakening (this should only happen once however), but you’ll save some nice money. All’s good, right?, not always. I know someone who signed up for Yoga classes with a palatable class size only to be frustrated to find 100 people lining up outside who are attending the same class for half the price! It’s sort of like that airline commercial about the person who pays $200 for a seat that the same guy next to him paid $800 (without all those downward dogs).
Even though I’m not a big user of these deals, I love the concept of these sites and what they will do for our economy. First off, many folks that sold IYP’s for years now have something they can leverage, their local contacts. These folks can now sell a service that’s widely used and accepted and the benefits to the advertiser are quick and objective (they see the number of downloads and increase in business). Thus, we’ll have more sales reps employed by these sites and competition for the superstars will drive up their (net) worth. At the same time, local businesses finally get what they want, increased sales and foot traffic. People logically will spend more and thus, help Bernanke in continuing the economic turnaround. This will all occur until the consolidation (that I predict is less than a year away) starts. Then, the buzz will start to subside and the sales redundancy will lead to an increase in these folks unemployed-but hey, enough of that negative chatter.
On a more positive note, something I’ve yet to see is a deal of the day aggregation site of any value. It won’t take long for someone to pull all these “deal” together in one aggregated deal so you don’t have to get 11 emails sent to you. This way, you’ll get all your deals under one roof.
Let the games begin (but see the rules)!
Managing Director, Search