List of Edmonton Group Buying Sites

by Timothy on March 24, 2011

There’s a lot of interest and energy around “group buying” websites like Groupon.com and Dealfind.com.

If you’re not familiar with them, basically they offer HUGE discounts on products and services to local businesses – this is what attracts thousands of people (consumers) to opt-in to their email list.

This huge email list is attractive to businesses looking for new clients. Businesses coordinate with the group-buying websites to offer the entire email database a massively discounted offer (50% – 90%), and the cycle continues…

Recently someone from inside one of the companies gave we data on the relative popularity of each. Here are the results for Edmonton, Alberta, Canada:

Dealfind 84
Groupon 129
wagjag 274
Livingsocial 332
teambuy 423
Swarmjam 1529
kijijideals 1973
DealTicker 2935

I haven’t confirmed these numbers, so take them at face value. Also, just because one is more highly-ranked doesn’t mean you should ignore the others. There could be advantages to working with a smaller company (possibly better, more personalize service?), whereas the more popular site will give you greater reach. Each has it’s advantages and disadvantages.

A friend once told me there are over 1,000 group buying sites around the world, so if you have an online store that can provide goods / services world wide, there is a truly huge opportunity to access literally hundreds of thousands of people worldwide.

To your success,

Tim :)

{ 2 comments… read them below or add one }

Oscar March 24, 2011 at 9:49 pm

I *LOVE* those group buying sites as a consumer, but never rally understood the full benefit as a business owner. Thanks for this, Tim.

-Oscar

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Timothy March 24, 2011 at 11:50 pm

After the discount, the remaining revenue is often split between the site and the business owner, anywhere from 50-50 to 75 (owner) – 25 (site).

If an owner knows what their cost is to acquire a new client, in some cases it can actually be cheaper to do the group buying site than using traditional advertising… as long as the owner is then converting the new group client into a full-price paying client. Ultimately this is a JV where the group site is bringing the database, and the owner is bringing the product / service, and together they make money while helping the client get an outrageous deal.

Awesome, hey?

Tim :)

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