One Mom's Journey

Depending on how you perceive couponing or deal sites will depend on your strategy here. In my case, being a self-published and new author, I would consider using a site like this for pure reach and free advertising. If I earn sales from the deal site, that is great, but be warned, your 'take home' is not huge.

Sites like Groupon, Wagjag and Sweet Deals will typically ask for a minimum discount on your product or service up to 90% off the retail price. Then they will take up to 50% of that number as profit when it sells. For example, my books currently retail for $14.50, I would offer them for $8.50 and the deal site will take $4.25, leaving me with a 'take home' of $4.25.

Why would a company ever use a site like this if it cuts so deep into profit margins?  Strategy is the correct answer.  These are a few reasons why it may be a good tactic for your business.

Reach

If you are a new business, with low start up, or zero marketing dollars, this is an excellent way to be seen by an audience you wouldn't be able to reach for free.  Their are no upfront costs for these deal sites. They make their money by taking a cut of your sales.  If you make sales, it is a bonus over and above the awesome reach you just received.

Exposure

This ties hand in hand with the reach you have just acquired.  But we are also talking about exposure.  You probably don't have an email list as extravagant as the deal site, it has the potential of exposing you to business who maybe want to carry your product n their store or a business who needs your service on a grand scale.  This exposure is something you likely wouldn't have received otherwise.

Clearance

Maybe you have a product that isn't moving, and is sitting in inventory.  This is an excellent way to get rid of your inventory without accruing additional expenses.

Unique Visitors

If you offer multiple products or services, featuring one product or service on a deal site ultimately will get customers linking to your current website where they can see what else you have to offer.  Again, a free way of getting customers that may have never seen or heard of you before.  Some companies will spend thousands of ad dollars on pay per clicks to get customers to their site.  Their return on investment (ROI) may or may not pay back - with a deal site, you take a huge profit cut, but you don't spend any money up front, technically making your ROI 100% (depending on how you look at it of course.  I am an optimist, so I try and see the good here).

Deal sites are selective, and busy.  You may fill out your online request and never hear from a customer service rep.  Or you may here from them 3 months down the road.  Be prepared to wait, add this time frame into your strategy, and certainly don't make this your only strategy.  Good luck!  I hope it reaps you tons of new customers!