If there is one business model that has proven successful over the last few years, it’s the daily deals model. Spearheaded by the billion dollar juggernaut, Groupon, daily deals offerings have become commonplace among local restaurants, spas, entertainment venues, and much more. Groupon’s massive adoption spawned daily deals clones; many of them finding their own success, such as LivingSocial. So why should you build a website to compete in this market?
1. Only 1,791 clones
In a recent article from DailyDealMedia, there is said to be 1,791 Groupon clones in the U.S. However, on average, every new startup idea has been done 3,128 times. Odds are already in your favor. Also consider that the current U.S. daily deals market is sitting around $2-3 Billion and projected to at least double within 3 years. Now, even if all 1,791 competitors obtained an equal share of the market, you’re still looking to pull in over $1.7 Million annually. Not bad, champ.
2. People are desensitized to email
Between Facebook notifications, coupons, newsletters, questions from your parents, updates from sites you don’t visit, and spam, people have moved from unsubscribing to anger to acceptance. There’s no better time to blast the poor saps with daily local coupons to their sad, uncontested inboxes.
3. The name doesn’t matter
Groupon – group coupon. Clever, right? They set the bar pretty high. Then LivingSocial bursted on the scene, giving Groupon a run for its money and becoming the number two daily deals site. LivingSocial tells me nothing about anything. It has absolutely no relevance to deals, coupons, emails, or discounts. I’m also failing to understand how being an extrovert is a qualification for 50% off tacos.
Nonetheless, the service is continuing to grow at a rapid rate. Name your daily deals site whatever the hell you want. Megadealioso? FaceMonster? It doesn’t matter.
4. You can be CEO and wear nothing but Whitey Tighties
Take a look at Andrew Mason, Groupon’s CEO hard at work.
5. No business skills or technical skills are required
By simply mirroring Groupon’s entire business, there is very minimal work required. In fact, we recommend copying Groupon’s HTML (just Right Click on their page and select View Source), paste it on your website, and change the logo. We’ve seen brand new Groupon clones go from nothing to an entire working business in a matter of a few hours.
6. No one has tackled “gotcha” daily deals
There is a wide open opportunity to attack the bait-and-switch daily deals model. The way it would work is simple. You advertise a deal that is seemingly too good to be true, allow users to buy in, and once it becomes “unlocked”, users will be presented with text flashing “You Lose!” on their screen. Though you would legally have to void their transaction, you create a sense of excitement and mystery to every deal.
7. No matter how the coupon performs, you profit
There have been quite a few stories of Groupon deals going horribly wrong. But it doesn’t matter. Your business will make money either way.
Based on our projections, we expect to see 2-3 times more Groupon clones in the coming year. If there was ever a time to ride a trend, it’s now. So put down your Cheetos, pause World of Warcraft and go make a billion dollar company, then finish those Cheetos and level up on a Yacht.