Friday, August 23, 2013
The daily deal business model provides lots of benefits for business startups. Entering coupon industry is relatively easy and inexpensive. However, there are many dangers and risks awaiting entrepreneurs on their way to building successful and profitable group buying or deal of the day business. Being aware of a problem is the first step in preventing it from occurring. So, let’s explore the key pitfalls to avoid when running a daily deal website.
1. Small business instability.
Daily deal promotions is a beneficial advertising option for merchants because it does not require an upfront payment from them. This also makes deal promotions available to startups and companies with a limited budget. Unfortunately, this category of businesses have a high failure rate. Besides, new companies can have some stock shortages or other issues caused by the lack of resources and experience. Daily deal companies should be careful when choosing merchants to partner with and should make at least brief analysis of their financial stability and ability to provide quality service to clients.