What do you think?

Two, you have no out-of-pocket advertising expense. Okay, you may have to spend on materials or product, but if you do it right, you can at least break even and generate new business. If you follow some of these examples, you can make a Groupon offer profitable. The last one is my favorite. A fitness club leveraged a standard free pass into a revenue-generating offer. When potential new customers would inquire about signing up for a membership, this club would normally give away a free three-day pass. They realized that the free pass didn't always turn into a new member, though, so they decided to create a longer trial, but charge a reduced fee for that pass.

It was a paid day pass and made that one available on Groupon. It was very successful. In short, the company invented a new product from a semi-successful free product and tested it in a big way via Groupon. It is worth reading.

Take My Money Tuesday Ep. 18 - Massage from Hiatus Spa

But she summarized some points in an e-mail to me:. Her company sold 92 Groupons, but only 77 redeemed they still received the money on the others, though. Of the 77 clients they saw, seven became regular clients, bringing with them family members and friends.

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Her advice? Many articles have been written about how important it is to figure out exactly how much the deal will cost you in products, time and payroll before deciding on a deal.

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So, she probably broke even on the Groupon itself, but made it up on repeat visits and word of mouth. Her other other bit of advice: Really think about the expiration date. She said a full year is too long. CanvasPop is a service that helps you transform your photos onto a canvas. The company ran a Groupon, but made sure to follow one major rule: capture e-mails.

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As an online service, CanvasPop captured each e-mail when people signed up to redeem the Groupon on their site. What I learned from their experience is that business should e flexible with Groupon offers. The inn sold a total of 82 packages, 99 percent of which went to new clients. When the Groupon purchasers call to book, the inn also has the chance to upsell the new customers on dinners at the Inn.

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They were prepared. Groupon may not be in the dictionary yet, but it sure is helping to define local business in this crazy economy. Skip to content. Menu Menu. United States Change Country. Help Log In. Cash Back Rewards Home. Issuers and Acquirers Providers and Developers. Small to Mid-Sized Businesses. Most Popular Cards.

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