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Collective discounts: business is promoted by customers

The sales season continues all the time – something like this can be described as the concept of collective shopping sites. They appeared in early 2009, and today this segment of the Internet market is experiencing a real boom. After all, it is difficult to resist the temptation to purchase security cameras, security company services, travel packages and other goods at a discount of up to 90 percent.

To whom is the collective discount service selling goods? Large Internet resources cover the entire territory of Russia. Their subscriber base has several million users who receive daily information about current offers. For manufacturers and sellers of goods and services, cooperation with such online resources is beneficial, as the collective discount website guarantees them a certain amount of sales in a relatively short period of time. The promotion may last 1-7 days.

The sale of discounted goods through collective purchases is a full-fledged advertising campaign, the effectiveness of which is based on the behavioral factor of the consumer. Each buyer seeks to purchase a quality item or service cheaply, and a discount site provides him with this opportunity.

The popularity of such services is evidenced by a large number of promotional offers, which are updated daily. Some coupon buyers fear fraud or other pitfalls. Their doubts are justified – which supplier is profitable to sell their goods and services for 10-20 percent of their value?

It is beneficial, since discounts in this case are payment for advertising. And the service subscribers themselves advertise the products. After all, the essence of collective purchases is that promotional conditions are valid only if a certain number of buyers purchased coupons. Each resource determines their quantity independently.

Collective sale of discounts is beneficial for everyone. The coupon site notifies its subscribers of a profitable offer. Subscribers who are interested in purchasing them at face value use all social contacts to gain the required number of customers. They receive goods at attractive prices as payment for their advertising services.

The collective purchase business model resembles viral marketing. It is well known that word of mouth is the most effective way to promote. A limited incentive time is a powerful incentive: buyers have to act quickly so as not to miss their own profit.

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