The success of LivingSocial and GroupOn has garnered a lot of interest in their business model. Almost every content site is evaluating whether they should add a daily deals component to their business. This is a guide to decide whether or not you should start a daily deals business, and if so how to go about doing it. I take a very metrics driven approach. If you are evaluating this from a marketing and strategy perspective, I would refer to Yipit’s guide here.
As a metrics consultant, I have helped a number of companies in the daily deals space through this process. As a word of warning, this is EXTREMELY hard. The simplicity of the user-facing software makes this business look deceptively easy. All of the complexity is hidden behind the scenes. That said, here we go.
Part 1: Should I Start a Daily Deals Business?