November 2015

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Should My Business Run A Deal On A Site Like Groupon?

by Stacey Riska on November 2, 2015 No comments

Is your business looking for the best way to get customers in the door fast?

Has your business considered running a deal on a site like Groupon?

There are pros and cons to consider when running a deal on a site like Groupon.

If you’re unsure whether your business “should Groupon or not” this article will help you get to the right answer for your business.

to groupon or not


I talk to a lot of small and local business owners and the thing they seem to struggle the most with is how to get more customers without spending an arm & leg to do it.

I know exactly how they feel because I was a struggling coffee and smoothie shop owner who was $500K in debt just a few years ago. I needed a strategy that was going to bring me customers fast and I didn’t have any money to spend on marketing.

I found the answer with Groupon. There are many daily deal sites out there, and they’re really all the same, so whether it’s Groupon, Living Social or a small daily deal site in your area, the factors you should consider won’t change.

There are many pros and cons to consider when determining if running a daily deal is good for your business.

Here are some of the biggest questions I get from business owners?

Will Using Groupon Cost My Business An Arm And A Leg?

No, actually it won’t cost your business anything upfront. You can keep your wallet – and all of your body parts – intact.

Daily deal sites do all of the marketing for you to bring you your perfect customer. They pay for the advertising and costs to promote your business. I’ll keep the math simple here for how the economics work.

You offer a deal that retails for $100. The customer can buy that deal for $50 (most deals are offered at 50% off). From that $50, you’ll get $25 (half) and the daily deal site will get $25 (half). Basically you’re getting 25 cents on the dollar. In my Daily Deals for Massive Profits Training Program I teach strategies to significantly increase this, but for the purpose of this article I’ll keep it simple.

You get the majority of the money immediately and the remainder shortly thereafter (usually within 6 weeks). This gives your business immediate cash flow for which you didn’t have to spend any hard dollars to bring that customer in. You’re just “paying” the daily deal site a commission for doing the marketing for you.

The key to making the economics work is to create a deal that is higher-priced with higher margins that you can offer upsells and cross-sells. That’s exactly what I did.

I could have offered a $20 for $10 deal of smoothies, but I would have lost money on every deal as just my food cost was over 30%. What I did was create catering packages starting at $575 that had plenty of markup so I actually made money on every transaction! And by offering addons like alcohol upgrades, party decorations, additional serving time, etc that was all full-priced options that I made 100% on.

Running a daily deal brought in customers fast and cash now. Something I desperately needed.

Will Running A Daily Deal Diminish My Branding?

Absolutely not! It can actually increase it by getting people talking about you and becoming rave ambassadors and referral sources for your business.

You will need to make sure that you are presenting a positive image to prospective customers who are interested in doing business with you. They will visit your web site they’ll ask about you on social media, they’ll check out your reviews on reputation sites. This is something that is covered in much more detail in the Daily Deals for Massive Profits Training Program because people will want to learn more about your business – and if you don’t do it correctly you can actually diminish your branding.

Running a daily deal will put your business in the spotlight. The daily deal site will feature your deal and bring a lot of traffic and interest in what you have to offer.

The key is to make sure your deal is exciting and fun so customers will want to brag to their friends and family about getting it, which will bring even more traffic and interest for your business.

Will It Make Me Look Cheap?

Honey, you’ll going to look FABULOUS in those jeans when you know how to correctly run a daily deal. When you structure a deal that is fun and unique, where the customer is getting an incredible deal, you’ll look like a hero.

Sure, if you offer a $20 for $10 deal on something as boring as a smoothie, you’ll end up getting the bargain shopper who will probably never come back. But if you offer an experience, something they can’t get anywhere else, like I did by offering tiki bar rental packages where a tikitender would come out and blend up gourmet all-natural fresh fruit smoothies – with or without alcohol – all topped off with a Hawaiian parasol – do you think the customer is going to think I’m cheap? Heck no! They’re going to actually want more. I made them look like the “hostess with the mostess” and they’re thrilled because they’re providing something fun/unique for their guests and getting compliments for doing so.

When you structure a deal that is an experience, that showcases what you offer in a fun and unique way, that gets customers excited to tell others about it, it can literally transform your business.

Will It Erode My Current Customer Base?

Sure a customer may see your deal on a site like Groupon, but you’ll get so many more NEW customers that will completely offset that. In the 3 years I’ve been running daily deals I’ve had one current customer say they saw my deal on Groupon, just one. And you know what? I gave them the Groupon price directly – so no split, 100% to me. The customer loved it because they were still getting a deal and I loved it because more profit went directly to my bottom line.

When you get customer’s contact information and build an ongoing relationship with them so they want to come back again and again and refer others, you’ll find your customer base actually grows, as well as your wallet.

What I love about daily deal marketing is that you control the marketing. You decide how many deals you want to offer, you decide when it’s valid, you decide if it’s only good for new customers, etc. This will help you ensure you’ve got the infrastructure in place to ensure those customers get amazing service so they want to come back again and again.


Daily deal marketing is a great way to get customers fast and cash now. When you know how to structure your deal and economics in the most positive way, it can skyrocket your business growth and provide massive profits to your bottom line.

How do I know? Using daily deal marketing was the key strategy I used to transform my business from $500K in debt to a 7-figure profitable business.

I’m so passionate about it, I now teach other small and local business owners how to do the same.

My general philosophy about daily deal marketing is that you’re going to pay to do marketing in your business to get new customers in the door, right? Why not take advantage of the marketing prowess and reach that a daily deal site like Groupon has to do the heavy lifting for you?

It can literally transform your business. It did for mine.


About Stacey Riska

Stacey Riska, aka "Small Business Stacey" is a serial entrepreneur who is passionate about helping small and local business owners get MORE: MORE leads, MORE customers/clients, MORE sales, and MORE money. She transformed her coffee and smoothie business from being $500K in debt to a 7-figure profitable business by using daily deal marketing. Now she teaches others how to skyrocket their business growth and get massive profits. When not saving the small business world, she enjoys sipping red wine, eating chocolate (who doesn't!) and spending time with her amazing husband.



Stacey RiskaShould My Business Run A Deal On A Site Like Groupon?