Should You Advertise Your Company On Groupon?

The other day I received an email from a potential client asking if her company should use Groupon to advertise her business. It can be a hard decision. I’ve seen Groupon work very well for some companies, and then for others I have heard a few horror stories where Groupon did not help their company at all, and actually cost their company money.

Positives of advertising your company on Groupon:

You can attract a lot of new customers.

Groupon can really help get your name out there and have a lot of people buy your deal. Since your price will be lower, customers may be more willing to try your services out since there will be a discount.

You might make some money.

You might be able to sell a lot of your services and/or products which will hopefully lead to some sort of profit.

You might gain long-term customers.

If you advertise on Groupon, then a long-lost customer may find you. Maybe they never heard of you before you advertised on Groupon and they really enjoyed your services and/or products.

 

Should You Advertise Your Company On Groupon?

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Negatives of advertising your company on Groupon:

You can attract a lot of new customers.

Wait, this was on the positive side. How could this be a negative as well?

You might lose some money.

You have to pay 50% to Groupon. So if you advertise your service at a discount and charge these Groupon customer $10, then Groupon gets $5 and you get $5. So if you normally charge $20 for your service, then you are really only getting $5 which is a significant discount. Can you still make money with that discount?

You might only deal with bargain-hunters.

There is a chance that you may not gain very many long-term customers. A lot of people who use a Groupon may not be loyal to your services, and they may prefer to use a coupon every time. This is a risk that you will need to take.

 

Have you ever advertised your company on Groupon? Why or why not?

 

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