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The promotional value of the vouchers purchased from deal-of-the-day websites typically expire after a certain period but maintain the original value paid. Common products and services sold through deal-of-the-day websites include apparel, restaurants and bars, salons and spas, special events, health and fitness products, and travel packages.

Most businesses which run contracts with daily deal websites consider doing so as a marketing activity rather than a direct means of generating profit. Between the deep discount offered as part of the deal and the payout to the deal-of-the-day site, the businesses may net little or no profit effectively making the deals loss leaders.

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There is evidence that these businesses gain significant increases in overall sales due to the amount of exposure gained from running a one-day deal. Many customers who purchase daily deals are "price-sensitive deal-seekers" who are unlikely to return to the business in the future without similar discounts. A survey of businesses who ran daily deals in the past year revealed that more than half The remainder Thus deal-of-the-day sites also function as marketing platforms.

A study of small businesses revealed that on average, daily deal spending is the single largest expenditure in a company's marketing budget, at Lesser expenditures include e-mail promotions Most daily deal websites have an affiliate marketing program, allowing third-party websites to be paid for referring visitors, increasing the presence of the deal-of-the-day sites. These websites display syndicated offers from a number of deals sites, based on location and which categories of deal a user is interested in receiving.

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Whereas was a year of rapid growth for the industry, daily deal sites began to slide in and Regardless, revenue forecasts for the industry continue to foresee strong growth. There has been a surge in the private shopping club sector with niche products and offerings such as luxury home ware and high-end food gaining in popularity.

The increase in venture capital injections and startup launches demonstrates the continued growth of the industry. Despite positive growth figures, some studies suggest there is a structural weakness to the industry that will have to be addressed.

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Such shortcomings exist on both the consumer and merchant sides of the industry. For example, deal users very rarely return for a full price purchase, and a large percentage of businesses indicate their disinterest in further deals in the future.

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From Wikipedia, the free encyclopedia. This section's factual accuracy may be compromised due to out-of-date information. Please update this article to reflect recent events or newly available information.

March June 13, Well, there is no magic in this… Federman buys watches, electronics and all other products he sells in huge amounts and this is how he manages to get them at really nice prices from his suppliers. From time to time, 1SaleADay. The important thing here is that the business model as a whole is a complete success. Federman left the army in and wanted to be his own boss.

He was thinking about starting an online business but wanted to make something a little bit different and innovative.

List of Daily Deal Sites

So he decided to sell great products at even greater prices! He managed to accumulate a hundred thousand dollars drying out credit cards and savings accounts. In 1SaleADay. What he earned, he reinvested back.

The venture became profitable in its third year. Today, the company is growing bigger and bigger.

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In a venture company funded the business allowing further expansion. The new sales are generated mainly by word of mouth and the decent social presence 1SaleADay. Recently, some new and more specialized sites employing the same strategy have been launched by the company: Shadora. Several more are planned to be developed soon.