We’ve long wondered about the economics of participating in daily deal sites, also known as group buying sites. You know—Groupon, WagJag, and the numerous other sites with the almost too-good-to-be-true bargains? Although Admiral Road has been approached to participate in group buying sites, we have always declined. We’ve had a feeling that it would be hard to actually make money. But many businesses do take part in group buying, so what gives?
Recently we listened in on a webinar from TD Canada Trust’s Small Business Webinar series. The webinar featured an executive from WagJag as well as two merchants recounting their experiences with group buying. Here’s what we learned about taking part in a group buying program.
The Good to Know
Participating in a group buying deal may be just the thing for your small business. Before you sign up, be sure and do the math and make sure it’s the right thing for your business now. Need some help on the math? Here’s a great article.
As in all things, look before you leap.