Home – New Forums Marketing mastery “All About Daily Deal/ Group-buying sites” Reply To: “All About Daily Deal/ Group-buying sites”

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Hi David

Thanks for your many thought-provoking comments, one of the many reasons why I’ve missed FS so much :)

I notice your sense of frustration (not bitchiness) and I can understand how it can make you feel when a great valued service like yours can’t get exposure on these particular sites, it’s very annoying to say the least.

Not sure who you have tried contacting (you don’t have to mention names) but there are possibly another 4 or 5 that still may be able to run your deal. They all have different merchant criteria and not all impose an immediate 50/50 split, there’s always room for negotiating especially if they see real value in the offer.

I definitely think that new entrants (soon) who have contacted us, are playing with different commission structures and revenue shares with merchants, this will in turn beef up competition in the space and begin an effect where the steep commissions will eventually plateau out in due course. I don’t think it will happen rapidly but over the course of the year at least.

I agree with you, there are definitely opportunities for other competitors to jump into the B2B space and offer more attractive terms for merchants to run deals, this I’m sure about. However even with the current merchant terms, one site told us that they have something in excess of 300 potential merchants wanting to run deals, of course they would still have to be screened for quality and deal offering but it just shows you that these B2B sites have a big merchant pool to dip into, so that gives them the upper hand
and they can be very selective in who they feature.

I’ve got to run but hopefully we can continue the conversation, thanks for the comments again David and sorry to hear about your particular situation regarding these sites.



David@Verve Recruitment, post: 103406 wrote:
Strikes me that the market is wide open for a low and reasonable cost player to come in and sweep up the good business that’s to be had. Bigaussiegiveaway, you watching?

The thing is, these sites can only ever be as good as their offers are. If they’re not promoting low cost services because the low cost service providers (like us) simply can’t justify the deal sites excessive commissions, then the deal sites are forced to post deals of over priced services. And that weakens the benefits they offer the user, and subsequently the users will lose interest in visiting the site and spending the time to read through some average, bogusly priced offering.

Soon, someone smart will realise the folly of this and start a site that does promote well priced services that will be of interest to users and at a cost affordable to those low cost service providers that have already done their best to offer the best value service in their chosen markets (as we have). And they’ll do this at a reasonable cost to the service provider so that they might have a mutually beneficial and thereby potentially ongoing relationship.

Sure, these sites charging 50% might be able to (attempt to) cash in by taking advantage of companies that are too desperate to rely on their own merits and marketing, but how long will that last. Not that long if the stats of these sites are in anyway accurate.

Sorry to sound bitchy (well actually i’m not) but these sites are doing themselves and their users a disservice by chasing the dollar and not doing what they claim to be doing – which I believe to be presenting the best business deals to their users. They’re not doing that. They’re simply presenting those clients willing to be gouged.

I also agree with AgentMail but not with your comments in this regard. People go to these sites to get deals. If, for example, Verve Recruitment are already offering by far the highest value recruitment service available in all of Australia at $495 inc GST with no placement fee, do the users really need to see us to slit our throats and reduce the cost to $250 and hope that our children are happy with porridge for every meal of the day. No. They don’t. Because they’re business owners / managers too and they realise that any service provider needs to make a buck. And if they don’t they can walk on by.

Well no, it’s not for every business model out there. It’s certainly not for those business models that are designed to offer a great deal to their client in the first place. It might be suitable for those that offer inflated prices in the first place, but then I question as to whether or not such companies ought to be represented by a site apparently dedicated to offering good deals to its users.

You’ve probably sensed my frustration and the reason for that is that i believe there are precious few opportunities for businesses that offer great deals to get the exposure that they deserve and that the market would benefit from, and I see these deal sites as being an ideal opportunity to do exactly that yet we’re denied the opportunity simply because we’re too well priced in the first place.