Thread: Marketing via those social network group buy discount sites?

Has anyone thought about advertising on those new group buy discount sites? Such as jumponit.com or livingnow.com. They offer a daily deal to subscribers, at at least 50% off. If enough people agree to buy, the deal goes ahead. So for eg, I could offer 3 classes for a discount, to be used within 3 months of purchase. The idea, from a business perspective, is to introduce a whole new market of customers to your services. In these days when print marketing does buggar all for my business, I'm contemplating giving this a go.

But I'm not sure how it could work. I don't currently run a huge timetable of classes, and have limited capacity to add more weekly classes. Plus my current class spaces can't hold a massive number of people, as one might need to make money from a discounted session. But I'm trying to think a little laterally, instead of just thinking how this wouldn't fit with my current way of doing things. Perhaps this might work for large, one-off classes, that only run if I reach the magic number? What about for other things I offer, like gig or party workshop bookings?

Thoughts? Experiences?

Originally Posted by jewelbellydance

Has anyone thought about advertising on those new group buy discount sites? Such as jumponit.com or livingnow.com. They offer a daily deal to subscribers, at at least 50% off. If enough people agree to buy, the deal goes ahead.

Perhaps this might work for large, one-off classes, that only run if I reach the magic number? What about for other things I offer, like gig or party workshop bookings?

Typically, you, as the seller, would receive only 25% of your "full price". The advertising site sells the 50% off coupon, and the resulting revenue is split between you and them. So, you'd need to ask yourself how you'd feel about receiving 1/4 of the money, NOT how you'd feel about receiving 1/2.

Your primary aim, as a vendor, is to convert whatever you sell via this program into repeat business. Ie, to have those discounted-service buyers consume their discount, then return to you later to pay full price. So, your key question is this: to what extent do your one-off events fuel follow-on revenue through generating students for you or additional full-price gigs? Or, to what extent do your beginner students come back for more classes after completing their first few? You won't make money on the initial people who get the discount, but you might make money if those party guests or students come back to you later to book more gigs or take more classes.

Shira, that's a really succinct analysis - thank you. Put like that, it doesn't sound too enticing. But the one thing that spikes my interest is getting my business out in front of people who wouldn't otherwise see it. I don't have my own studio, and I'm not allowed to put a sign outside the venues that I hire. So I'm essentially invisible, until people go hunting for a 'bellydance class in Melbourne' on the web. I'm thinking this might help counterract that. But then again, how many discount deal customers will actually convert to longer term customers? My experience suggests not many. Hmmm.

Very interested to hear any other perspectives.

Originally Posted by jewelbellydance

But the one thing that spikes my interest is getting my business out in front of people who wouldn't otherwise see it. I don't have my own studio, and I'm not allowed to put a sign outside the venues that I hire. So I'm essentially invisible, until people go hunting for a 'bellydance class in Melbourne' on the web.

You could try facebook ads - you can limit who the ad is displayed to by city, gender, and age group.

You could put posters up around town on "community bulletin boards" - does your town have those? Here, a number of businesses (coffee shops, banks, etc.) have corkboards that permit ads to be posted promoting local events.

I think the discount site ads could be okay for selling space in your classes, if your classes aren't typically full. For example, if your studio is big enough to hold 20 students and you usually have only 10 sign up, you could try selling half-price 15 coupons. (I'm assuming here that not everybody who buys a coupon will actually show up....)

I think it's easier to drive repeat business with someone who has come to several classes and built relationships with you and classmates than it is to drive repeat business from one-off events such as gigs. And remember, once the student shows up in your class, you can add her to your mailing list, and send out periodic email reminders to your entire mailing list of past, present, and prospective students about your availability to do party workshops and performances.