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Group Buying Software For Multiple Daily Deal Sales Models

Our group buying software has grown into a powerful ecommerce platform that can be used to meet various needs such as selling digital goods, selling physical products or selling daily deals. As the daily deal business continues to evolve so will the sales models that daily deal sites employ to attract customers and merchants. Compared to hosted daily deal solutions and other group buying software providers which take a cookie cutter approach, we have developed a versatile ecommerce software solution that allows you to create a unique website and utilize any of these sales concepts.

Standard Model

GBS live sales statsThe merchant partners with a daily deal site to offer a product or service for 50% off the regular price. All payments go directly to the daily deal site and later the admin pays out the merchant after assessing their fees which are typically 30% to 50% of the total sales. There are no hard settings built into GBS when it comes to paying out merchants so you have total freedom in deciding when merchants are paid and how much. You can use the Live Sales Stats add-on to enter the percentage share you’ve arranged with each merchant to automatically calculate the payment due to them.

Shared Model

GBS voucher serials custom codesThe daily deal site sells vouchers at a very low price ($1-$5) and the buyer takes the voucher to the merchant’s place of business to purchase the discounted product/service directly from the merchant. GBS allows you to enter a comma separated list of custom codes (provided by merchant) into the voucher serials field for each deal as well. This allows the voucher to be redeemed online at the merchant’s website as long as the merchant’s site possesses the ability to receive unique discount codes for purchases. With this model, both the deal publisher and the merchant receive 100% of all the sales that occur on their own website. If the merchant’s site doesn’t possess the ability to receive discount codes, the merchant will have to manually reimburse the customer for the discount amount after the purchase is completed.

Subscription Model

Instead of taking a standard percentage of every sale that’s generated for a merchant, the deal site simply charges the merchant a recurring monthly or yearly fee. The deal site could also offer various pricing plans for the number of deals a merchant can offer on a monthly or yearly basis. A simple way of offering this is to create a subscription option through your payment gateway account (e.g. PayPal, Authorize.net, etc.) and require the user to complete the purchase before they can become a merchant. If they unsubscribe, you can demote them so they can no longer submit deals or access their account.

Flat Rate Model

In contrast to a monthly or yearly subscription, the deal site owner may want to charge the merchant a one-time fee for each deal they offer. This similar to the standard sales model for selling daily deals but the merchant is paying a flat amount and not a percentage of the total sales generated. Incorporating pricing plans that give merchants better rates for running multiple offers could be a great option for converting those merchants into return customers. Collecting payments for this model is easy, you simply payout the merchant minus the fee you charge for each deal they offer.

Freemium Model

Giving something away for free is a great way to get clients to try your products and services. Many online service providers have found tremendous success with the freemium model. The challenge with this model lies in the ability to offer desirable upgrade options for which merchants are willing to pay. For example, you could create a featured deals page where paying merchants’ deals are listed in a more prominent place throughout your daily deal site. Another upgrade option to offer merchants might be entering custom codes for them so buyers can pay at the merchant’s website directly.

Cash Back Model

cash backOffering cash back on purchases is a terrific way to increase customer loyalty and obtain return purchases. Traditional daily deals simply offer a huge discount for a given merchant’s product or service. Instead of offering the entire discount to the customer in the form of a lower price, the site owner could completely, or partially, reimburse the buyer by awarding credit to his or her account using the GBS cashback rewards add-on. For example, the daily deal site owner could negotiate with the merchant to offer a product/service for 55% off the regular price of $100 but display the deal as 50% off with a 5% cash back reward. To sweeten the deal the site owner could offer additional credit to newly registered users via the Registration Rewards add-on. Integrating these options acts to differentiate your site, help convert visitors into registered users and offer customers incentive to return for another purchase.

Flash Sales Model

Flash sales sites, also known as private sales sites, serve discounted deals that can only be accessed by members of their site for a short period of time. Our group buying software allows you to not only run a private, member based site but you can also offer alternative pricing to members via the Membership and Member Pricing add-ons, respectively.

Each one of these daily deal sales models has its own advantages and disadvantages from the perspective of the deal publisher and the merchant. The key to success is to discover which options work best for you and your clients’ needs. Keep in mind that you can also combine any of these models, or offer more than just one to address the specific needs of each merchant. Offering customers additional perks like cash back for purchases and referral rewards are just a few of the many GBS add-ons and features that are available with our group buying software platform.


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