How To Start A Daily Deal Site |

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How To Start A Daily Deal Site

May 13, 2010 by Jimmy Hendricks

This title of this post is the first Google search people make when they come across our daily deal software product Deal Current.

I love the fact that Groupon, Living Social, and the hundred other daily deal sites are starting to pop up. From a business stand point the market is definitely being flooded, but I personally love it because Groupon has sparked entrepreneurship. It is obvious that most people are copying Groupon, but people are capitalizing on a new business model. This is pure capitalism. Some will succeed and many will fail, but the best practices will be defined through this process.

As a company we are focused on serving one market niche with our daily deal product Deal Current. As a result, we turn away some incoming leads, but I wanted to share my knowledge with people or companies looking to start a daily deal program.

First! – Running a daily deal site is much harder than most entrepreneurs realize. The software and website are the easy part. The operations, systems, and brand are the most important.

Second, here is a list of questions and things you need to think about when deciding if you should start a daily deal site or if you are interviewing a daily deal software provider.

What is your distribution or marketing plan? The number one thing once you have a brand is distribution. How many emails do you have? What partnerships can you put in place? Do you have a marketing budget?

What is your daily deal brand? Are you going to center your site around a niche? Are you going to tie into local city culture? Think hard on this. It will define your future.

Are you going to build or license software? We license our software. This is great for media partners and large organizations who want to plug a program into their existing organization. If you are an entrepreneur, it means you don’t own the proprietary platform. So you should probably invest 10-15k into your own software. This takes more time and commitment, but entrepreneurship is not easy.

If you are working with a software provider, what other services and support do they provide? Here is what we provide to clients as a reference of services for you to ask about when you talk to vendors.

Technology, management center, and reporting
Design support (paid)
Sales training and sales collateral
Merchant agreements
Customer support
Merchant payment and accounting
Credit card processing
Writers
Market research

Lastly, what research have you done? We researched 50+ competitors in 66 markets and interviewed over 100 merchants who ran a daily deal with various sites to develop our daily deal software. To run an effective program and be successful you need to invest time and money in research. Do you have this commitment and patience? In a very competitive market, knowledge is key, so do your research.

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Posted in Deal Current, Entrepreneurship, Marketing | Tagged daily deal platforms, daily deal programs, Daily Deal Software, Daily Deal Solution, Deal Current, Dealcurrent.com, group buying software, how to compete with groupon, how to start a daily deal site, turn-key daily deal software | 51 Comments

51 Responses

on June 14, 2010 at 4:00 pm Mike

Great article. I agree that people may think all they have to do is get the website going with a boxed app. If you think of the capital infusion Groupon got and the fact that it now employs 300 in Chicago alone its quite a bit of work to be successful.
on June 14, 2010 at 4:08 pm Jimmy Hendricks

Thanks Mike. A real marketing budget and sales plan is definitely the key.
on September 6, 2010 at 10:56 am J.M.

Jimmy:

I basically helped create the NYC market for one of the 3 largest daily deal websites in the US. Can’t say which, sorry. I’m no longer there, but I was wondering: since I know so much about how these sites operate, how they monetize each city and how the operations work, what do you suggest is the best way to lend my knowledge as a consultant to newcomer companies seeking to tap into this industry? I am a very valuable resource.
on September 15, 2010 at 3:27 am Piers Hill

JM:
I am in the process of investigating the daily deal space. We are considering operating site(s)here in Australia and DealCurrent will hopefully be helping us out with the technology side of things. I would be most interested in talking with you on how to monetize each city etc. More than happy to pay for your time. Good experience and advice is hard to come by. E-mail me if it interests you. phill@1stdigital.com.au. Piers Hill

Jimmy:
Hope this is OK posting this here. I guess I’ll find out if it remains posted. Understand if its not.
on September 15, 2010 at 7:49 am Jimmy Hendricks

Piers – no problem. Thanks for the comment. We look forward to discussing Australia.
on September 29, 2010 at 10:54 am Mike

Jimmy,

Great article. I’ve already contacted your offices for more information on your software, pricing, and customization. I was told I would hear back from one of your technicians but would much rather discuss things with you if possible. I located in Los Angeles and currently in the process of deciding whether to build the software for my e-commece site GroupSkoop or license it from a company such as yours. My team has spent over a year researching and conceptualizing what could make for the the first e-commerce platform that encourages its users to build a community around shared interests and locales in the spirit of competition, social networking, social gaming, for an ‘untouched’ niche market. Given our current competitor perspectives and low entry barriers, I feel it is crucial to enter the marketplace promptly and would love to know more about weather your company provides out of the box customization were looking for. We have a detailed Executive Summary, lo-level wireframes, design, and full Product Requirements Document that I’d like to share with you.

I hope this posting is appropriate and I look forward to hearing from you.
on October 11, 2010 at 11:02 pm Sammy Suzo

Hi J.M
im looking into launching a daily deal site and would find your knowledge and help extremely helpful in any way please contact me if you ca at sammycfo @ gmail . com
on February 7, 2011 at 5:57 pm Rob Strickland

Hi Jimmy

Be keen on talking to you as well, we’ve launched our new daily deal website into Christchurch and we want to be in 14 other regions within 12 months be great to talk to you asbout making this happen you can email me on rob@getadeal.co.nz
on February 26, 2011 at 11:14 am RJ

@JM:

JM – I am considering launching my Daily Deals Site and can use your experience and knowledge. I am willing to pay for your time.

Please contact me at rahulj6415@yahoo.com.

Thanks.
on March 24, 2011 at 8:29 pm A. B. C.

J.M.
A friend of mine suggested to start daily deals business. I would be willing to pay for your services. Please email to jointheparty2000@yahoo.com
Thanks
on March 25, 2011 at 2:34 pm Rick Hanson

Thanks for a good post. How would you suggest entering a medium sized market with 2 new deal sites already in place? Also, do you have any sales tips in order to get enough businesses in your deal lineup to be consistent?
on April 4, 2011 at 12:41 pm Steve Stotts

I wanted to start a daily Deal site but it has a twist that could change the market and competition. I want to discuss the concept and will love feedback.
on April 9, 2011 at 9:24 pm Eternity

5cJ3z3 Wow! That’s a really neat answer!
on April 16, 2011 at 2:07 pm Dan Klein

Hey just wanted to write a note and say great article. I currently run a very succesful daily deal business and you are spot on with what you are saying. If anyone is in need of help in some tips, I have some good one’s that are working realy well. I have not spent a dollar on advertising or adwords and built up around 40k subscribers for my site. Let me know if anyone needs any tips. We only operate in the pacific northwest.
Danjklein@gmail.com
on May 22, 2011 at 7:00 pm Logan

Hi J.M, My name is Logan, a friend of mine and myself are looking at launching a daily deal website.

We have a unique twist to what we can offer that others dont and would really like your help.

As the business is not exactly started up yet I cant exactly pay you (at least not untill it launches)

If you could contact me with some options to get your help i would highly apreciate it.

Email me on loganc07@gmail.com

Regards,

Logan
on May 25, 2011 at 11:25 am Mike

Hey Guys

Great article! Lots of great insight and seems like a great product. I just wanted to offer my expertise as well in this area, although we don’t operate a daily deal site, we work with alot of them in the area of credit card payment processing and have had alot of success in placing this business. If anyone has tried lately to get a merchant account, you may have encountered some difficulty and we can help. So, if you have any questions about merchant accounts for Daily Deal sites, contact me – mike@socialappmerchant.com and I will be happy to help.

thanks
on May 30, 2011 at 1:53 am kamini

I just got this Groupon Clone Site, going to buy this script.. hope you like http://www.gr8script.com/groupon-clone.php
on June 1, 2011 at 5:23 am alexandro

anyone looking to build a groupon like site should go for something like http://www.riverteams.com its something fresh and innovative and works on a better business model. all the rest are just copies of groupon…waste of money and time if you just do the same
on June 2, 2011 at 6:16 am Nancy H.

Hi, JM,
I’m interested in receiving some tips and feedback from your experience working at a top daily deal websites.
I am launching my own soon.
Thanks,
Nancy
on June 14, 2011 at 7:27 pm Nick

Hi JM,

I am in need of your consultation services. I am launching really soon and I will pay to use your service nvisoky@att.net

Thanks,

Nick
on June 23, 2011 at 3:42 pm stoone

does dealcurrent have mobile cilents like iphone and android? that is crucial since mobile client is so hot today.
on July 5, 2011 at 6:08 pm Jean

Hi, I am Jean, i am also planning to run a daily site but I do not have an idea how. Can anyone please send me some tips? I would really appreciate it.
What do I need to tell the merchants and how do I earn?
Thank you so much
you can email me at jeangray09@hotmail.com
on July 18, 2011 at 12:03 pm Nick

J.M. – please contact me at info at buysforbrides dot com

I am a DealCurrent customer and will be launching our website in about a month. Landing page is up now and we are capturing email subscribers—looking for strategies other than google adwords / facebook ads to drive traffic to the site and get email subscribers.

Thanks,

Nick
CEO
BuysForBrides.com
on July 31, 2011 at 6:27 am Lane

I own a deal site that has pretty good established national traffic, and have ran some deals on and off over the last year. My success was very limited, and the market is becoming over saturated. I have some ideas to make us stand apart….., the profit will be much less, and I am not sure if it is enough to make a difference, but it is worth a shot.

I strongly urge any of you with sites in beginning stages, or if you are thinking of starting a site, to contact me. I would like to work with link minded people or businesses to help grow together or partner instead of competing.

Please contact me at lane (at) quirpo.com
on August 10, 2011 at 5:40 pm joe

in the uk we also have secondary market place for daily deals it called coupalley.co.uk. you can buy a missed deal and even save money by selling unwanted vouchers
on August 21, 2011 at 3:53 pm Lee

Dear Jim,

I am launching in the near furture a site that is unique to the industry and would like you opinion and expertise on the concept and business model. Please email me at: lee.raskind@gmail.com. thanks

Lee
on August 25, 2011 at 11:32 am Rolling Offers

I agree that running a site is more difficult than it appears. List building, attracting merchants, attracting organic traffic, advertising and running the business. List Building I think is probably the least realised. I didn’t focus enough on this part of my business and it’s now building slowly – but the key is in the list!
on September 4, 2011 at 9:07 am Raj

Hi,
I am doing research on daily deal site.

Can i start on my own in India? What is the initial investment for these kinds of business? Initially i will target only one city, for which, how many resource should i recruit? What is the avg cost to develop a deal site? How much i can expect at the end of one year?

Thanks in advance for answering the questions. Thanks!!!

Regards,
Raj
on September 21, 2011 at 4:43 pm Margie

Also looking at DealCurrent for my platform, but am concerned about the cost. In looking at my options, they are the ‘Cadillac’… however I have a Corolla budget to get started! Looking at other options to get started and see how it goes. I need to have more income before I can justify the expense. Any suggestions?
on September 22, 2011 at 1:10 pm clint

Jimmy, if you’re still checking this thread… let’s chat ASAP. You’ll like what we’ve got to offer… bumpguy at hotmail.com

thanks!
on October 5, 2011 at 7:00 pm Greg

hey everyone, I have launched a daily deal site called Priceseller.com and I can tell one thing. First I thought that it will be very easy to operate this site , but later I bumped into the problem of getting the merchants sign up. Then I decided to go after travel deals, I partnered with a travel agency and got unbelievable deals. Then I saw that it’s not working and decided to switch to regular daily deals. I have a great site and a great domain name, my problem is that I am alone and have no one to help me to do things. So right now I am stuck in the middle of the project and I have everything ready to go. The only thing I need is I need a great sales person or a person that can get the merchants sign up. I am an internet marketing expert and I know how to drive traffic to any site. Anyways, if there is anyone who wants to partner up I am open for conversation. In addition, I am located in Los Angeles, CA
grigorim15@gmail.com Thanks, and good luck to everyone!
on December 1, 2011 at 4:00 pm mining the social graph

As we speak, maintaining a daily deal site is never easy as it seems. Your marketing strategy plan should be that concrete that it would be able to reach your target market in a way that you get to connect with them at the same time do your business.
on December 3, 2011 at 6:51 am Lori

Hi
im looking into launching a daily deal site and would appreciate any advice in running a successful site. Please email me. Urbano5@aol.com.
on December 8, 2011 at 12:03 pm social graph mining

A daily deal site as it says is a daily maintenance as well. Marketing strategy could really play a significant role in building the foundation of the site. This post is really relevant.
on December 18, 2011 at 2:01 pm Solomon Mills

Hi
I’m also looking into launching a daily deal site in the West African market and would appreciate any advice in running a successful site. Please email me. wawaavenueguesthouse@gmail.com.
on December 23, 2011 at 12:09 pm Sarah

I bought a license for a Daily Deal software, built the site and the content, however due to other work commitments I couldn’t move ahead with the idea. The site is live at the moment. If you are looking to start a daily deal site, contact me at ssarah988 at gmail.com as I have a fully developed site that I am selling with domain name so you don’t have to start from scratch. Thank you!
on December 23, 2011 at 9:46 pm Margie

I’m interested in your site. Looking to start my own dd website but family emergencies forced me to delay my start. Ready to move ahead with a new year and a fresh start. Please contact me at jmnarramore@msn.com with more info.
on December 26, 2011 at 4:28 pm Sarah

Hi Margie,

I just e-mailed you, let me know! Hope my website can meet your needs
on January 12, 2012 at 6:38 pm Da Vida Luiz Feliz

Groupon, living sociable, Yipit, as well as handful of a large number of other medication is what are named as everyday deals sites. They give away daily email with details about heavily reduced neighborhood …daily deals
on January 29, 2012 at 7:05 am S V

Sarah,

Could you please send me an email at bzveps@gmail.com? I would be interested in starting quickly.

Regards,
SV
on February 6, 2012 at 8:40 am Salad

Hi guys,

Themes Kingdom has just released amazing daily deal WordPress theme http://www.themeskingdom.com/dealers/

Price is just $29!!!

I personally think that is awesome because they offer support for all their members as well as regular software updates…So you just need WordPress CMS which is FREE and this theme for start.

I know that you need a lot of things after getting the software but still is good and cheap start
on February 8, 2012 at 10:42 am Adam

Hi there can anyone help me with my dd website?
on February 16, 2012 at 12:00 pm mike

how big of a email list should you have before launching??
on February 26, 2012 at 8:14 am SpicyDesi

I wonder how many were successful on this thread related to daily deals.

any feedback would be great on your journey so far since last 1 year

looks like marketing/sales is the key for a successful business and not
software /website and great ideas
on March 5, 2012 at 6:55 am Kemal

Hi, I am looking into working with someone who has experience in programming and building traffic to our site. I have a great domain name that could work if done properly and am looking for a driven person who is interested in working together, please kindly email me.

Thanks

Kemal

email: oddessy2000xx@hotmail.com
on March 20, 2012 at 12:18 pm Yvette

Yvette
Hi, I am currently searching information on how to start a daily deal site. Am located in Nassau, Bahamas. This would be an ideal thing to begin here since the market is huge for buy things from the U.S. I am willing to gain knowledge and work with someone if they have the expertise. Can someone help me make this happen?
Contact: yfernander@hotmail.com
on April 25, 2012 at 6:11 am mr dale

please contact importerdale@hotmail.com

Your sales team stated you dont support the australian market…?
on May 15, 2012 at 4:39 am kavita B

I am planning to launch my daily deal site but my business model is bit different. could anyone help, I want to attrack traffic to my site??
on July 23, 2012 at 9:50 am Chase

I ran into this Daily Deal Tip…….thought it was interesting… http://bit.ly/QsxJio
on July 23, 2012 at 1:54 pm Lauren

Anyone interested in a daily deal site that is up and running. We are interested in selling. Email me at marketwatch0873@yahoo.com for more info.
on November 18, 2012 at 10:01 am mendel

Hi,
I have some cheap items that I would like to move. Possibly a good buy for a daily deal website. If interested please email me at bestpeddler@gmail.com
Thanks

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