Collective buying, or group buying, is a new trend that benefits businesses and consumers alike. Group buying websites, such as www.groupon.com, offer discounts on goods and services. Unlike traditional coupon sites, they encourage consumers to spread the buzz and bring in other customers by guaranteeing the bargains only if enough customers take advantage of the promotion.
These sites, which are quickly gaining in popularity, offer a cheap way for businesses to advertise and drum up business. For example, www.buywithme.com writes up the information provided by the business, and then promotes the deal with online contests and email blasts. Potential buyers use social networking to encourage others to sign up for the deal. One website, www.livingsocial.com, provides buyers with a special link to send to friends. If a buyer persuades three people to purchase the voucher, that customer receives it for free.
Compared to other advertising methods, group buying offers instant revenue and brand promotion with a clear return on investment (ROI). Within one day, business owners know exactly how many people have taken advantage of a particular promotion. They receive immediate payment for purchase of their vouchers. Even if the buyers never redeem their coupons, business owners retain the payments.
As an added bonus, collective buying exposes your business to a new demographic. Group buying websites have a vast audience of deal-seekers who are motivated to spread news of a good offer.
Viewed from any angle, this business opportunity has a lot to offer. Dream up an offer that customers can’t refuse, and find a collective buying website to market it.