Let’s say you are a business owner and you have one last ditch attempt at reviving your marketing efforts.
Now let’s assume you get sold on the idea of signing up to a program where they will “do all of your marketing for you and really push your brand” and “actually get customers in the door”, but they’ll also take a hefty cut.
All you need to do is sign on the dotted line and voila, your products are being pushed into the inboxes of “couponers” everywhere.
Seems like a genius plan, right?
Did you know that by listing on these daily deal sites, you could actually be losing money in the long term?
There is a better strategy to invest in the future of your company and your brand.
Not only do these coupon sites take a hefty cut of your revenue for every sale they make, they also are extremely damaging to a brand.
When you’re looking at your business, you do not want to position yourself as lowest common denominator.
Essentially, you need to train your customers. You come here, you get fantastic service/ an amazing product. You pay the price that needs to be paid relative to the value of the product/service you have received. You have a great brand experience.
When you train people to expect discounts and cheap goods and services from your business, you may as well hang up the closed sign.
That’s not to say that you never run promotions, but you need to be in control of the future of your business.
Most of these group deal companies will take 50 per cent of your revenue for whatever sales they are responsible for, on top of the discounts you are already putting on the goods and services (which is usually 20 per cent to 50 per cent off RRP).
If you charge $100 for your product, and you give a 50 per cent discount, that’s $50. Less what the coupon site takes, which is about 50 per cent, you are left with $25.
If you are not careful, you actually end up losing money on sales.
“Oh but it gets people to see you brand and we do marketing for you and the flow on effects are huge,” you’ll hear them say.
This rarely ever happens… like rarely.
More often than not, the customers who are paying next to nothing will complain more than your regular customers.
Are those really the types of people that you want to do business with?
So what’s the other solution? How can you create buzz and hype around your business?
Let’s take that $100 product we had before as an example.
We still want to make $50 on the product, as opposed to the $25 we’d make on a coupon site.
Now, let’s take that $50 and invest it in a strong set of Facebook and Instagram ads, targeted to the exact demographic we are looking for.
With $50, running a Facebook ad targeting local people in your area, you have the potential to have your ads seen but hundreds or thousands of people per day.
If you are running an ad in Perth, Western Australia for one week on Facebook and you put $50 behind the campaign, you will reach between 590 and 1600 people on Facebook and 550 and 1500 people on Instagram before you define your audience in any way.
Social media advertising gives you analytics – how much you are spending per click, who you are targeting, how many people have gone to your website.
Couple this with strong digital branding and amazing sales copy and you will find that your business will never be the same.
So when you think marketing your own business is too hard, think again. Don’t buy into false promises and so-called hand-delivered buyers to your door in the short term.
Play the long game.