Connections Groups - Connect to Deals!
Riding the NEW Wave of Internet Marketing
- a new "partnership" with DailyDeelz.com
Could YOU get a free lunch with an advertising concept that GUARANTEES results?
Could you just get a free lunch?
An old form of marketing is making the rounds, dressed up in new clothing, thanks to the digital age and the internet.
This concept is brilliant (though not new), proven to get results, and it is a win-win-win.
A win for the CONSUMER – that’s all of us!
A win for the MERCHANTS and business owners
A win for the marketing company offering the service.
What is it?
See for yourself! Check out these marketing sites:
http://www.DailyDeelz.com (Orlando and soon: Tampa, Gainesville & Jacksonville)
These sites offer you, the consumer, a way to purchase a “certificate” that can be redeemed at a business, for a deep discount… usually starting at 50%. You can save money on things you buy anyway, or restaurants you frequent, or services you use.
The "Thai Tiki" ad, to the right, is a
mock up of the types of deals you will find:
Whether it’s a $30 certificate at your favorite restaurant, $50 at a trendy new hair salon, $100 at a local wine shop, $200 at a reputable car repair shop, or a chance to swim with manatees for 75% off… you save money!
How do you get “the deal?” Well… you can sign up to get a daily email telling you what the deal is (use an email that goes to your phone or PDA so you don’t miss out!). You can also check their web sites to see.
I freaked out when I saw what these companies are doing because my vision for Connections Groups was to do this exact concept once our database became big enough to make it worth-while. Now that we have over 20,000 in our database… it IS.
Originally I was going to roll out my own program. But after some investigation... I've instead decided we should be partnering with www.DailyDeelz.com
Why Daily Deelz? Because they are locally owned an operated (Winter Park), have strong ties to the travel industry (so great deals on travel are coming) AND, we have worked with them to get a "business to business" category added to their "Side Deelz" so that all of our members that are business owners have an opportunity to participate, if appropriate, for your business!
CASH BACK! Additionally Daily Deelz has an extra "perk" for ALL... a CASH BACK REFERRAL program that pays YOU 5% of all the sales to people you refer, that they refer, and that they refer... a 4 level affiliate program that could make you hundreds or thousands in residual income.
I am very, VERY familiar with how successful this marketing concept can be for the merchants and businesses - but with the CASH BACK aspect of Daily Deelz... this is going to grow rapidly and offer even greater benefits to BOTH businesses and consumers.
Years ago I co-produced a radio show that later became the Home Shopping Channel on TV. When the show was on radio we did this same concept... took merchants advertising dollars as "trade out" and turned around and sold those trade out "dollars" to our listeners for a discount. The merchant got advertising and exposure that GUARANTEED them a result... since their new customer had to walk in their door to redeem the certificate. The advertising cost them ZERO - until they got that result, AND, they had the opportunity to upsell the customer, meaning that, if they were successful in upselling enough, they could break even, or even make an immediate profit, off the program itself.
Imagine… guaranteed customers and potentially NO cost to get them!
The sponsors got great testimonials from our listeners too... because they would call in to the show to get other certificates and then talk about the places they had been recently. Our sponsors knew to treat our listeners "like gold" ...because they WERE! Each new customer would tell others about their experience... on the radio show... as well as to all their friends. Sound familiar? "Word of mouth" is ALWAYS the best form of advertising.... and this concept drives more "word of mouth" for your business"
"Self Selecting." The reason that many forms of advertising and marketing are so costly and ineffective is that most of your marketing dollars are actually WASTED. Why? Because if you are a "brick and mortar" business you draw your customers from your immediate area only. On top of that, no matter what type of business you have, not everyone is a potential customer for you. This means that radio, tv, internet, etc is using your advertising dollars to market to people who will never be your customers. Wouldn't it be great if you only paid when that newspaper was delivered to a REAL prospect? Well, with THIS concept, that is exactly what is happening. The people who BUY YOUR DEAL are "self selecting" - after all, they wouldn't have bought it if they weren't interested in the types of products or services you offer, would they?
How does the money end work?
When we did the radio show, the radio station kept ALL the money from the sale of the certificates… because we gave them regular commercial air-time in addition to their exposure on the radio show when we sold their "certificates." They were just “paying” for it in trade-out dollars. Still a "wicked smart" way to market though right? After all, it cost them nothing UNTIL that new customer walked through their door!
With Groupon, Living Social AND DailyDeelz, however, YOU, the merchant SHARE in the revenue generated from the sale of the certificates sold; since the marketing is limited to the exposure created by that offer.
These companies split the revenue generated by the sale of the certificates with the merchant. The typical split is 50/50 or 60/40 (60% to business), but it might be slightly different depending on the “hard cost” to the merchant or business.
Groupon and Living Social don't give you quite as good a deal however. As they ONLY pay the merchant for the deals that are USED (they have a tracking system), and they take over 60 days to pay out. They merchant gets paid for a 1/3 in a few weeks, another 1/3 a month later, the last 1/3 a month after that.
Daily Deelz is BETTER in 3 ways. ONE - the business gets paid for ALL deals purchased, whether they are used or not (there is up to a 25% "breakage" in this business - meaning deals bought, but not redeemed). Getting paid for the "breakage" gives you a better profit margin! TWO - you get paid ALL the money in about 15 business days. This means you have your money BEFORE all the deals are redeemed. THREE - Daily Deelz CASH BACK referral program means that you can get cash back for ALL deals purchased by consumers you refer to Daily Deelz. A simple BANNER AD on your web site and you are good to go. Imagine making 5% when someone buys any deal - even at your competitor! (sweet)
I’m sure you are way ahead of me though, and you already understand the MOST IMPORTANT things here for the businesses are…
Merchants are NOT in this for the revenue generated from the sale of the certificates.
And they are not in it for the profit from that FIRST transaction with the consumer, or new client, either.
No… SAVVY business owners understand the term “LTV” - Lifetime Value. They know that each new person that walks in their door, or calls them on the phone, gives them the opportunity to develop a RELATIONSHIP and create a new, loyal, ongoing client.
After all... building a business is like EATING AN ELEPHANT. How do you eat an elephant? ...One bite at a time. HOW do you grow a business? ...one new customer at at time. Each customer has an LTV and each has the potential for numerous REFERRALS.
The HARDEST thing to do in business is get someone to use you the FIRST time. After that... it's 12 times easier to get them to use you again... and to increase the average sale (or referrals) from that customer!
Every business owner should, before you spend $1 advertising, understand what the lifetime value of your AVERAGE client is. The formula is simple... what is your average sale, multiplied by how many times a year your average customer will spend money with you, multiplied by how many years you can expect your average customer will do business with you.
That equals your clients LTV.
In just a fast food restaurant, for example, the average customer could easily be worth $9000-$20,000 over their lifetime. Knowing this... how much would you be willing to invest to get each one of those new customers? Would it be worth it to “give away” their first transaction/experience with you?
By the way.. the correct answer here is... "yes!" ;~)
If you have spent hundreds (or thousands) of dollars on traditional advertising… newspaper, radio, tv, internet, etc. then you know it’s basically a crapshoot. You can literally spend thousands of dollars and not see ANY result. Or you might see some result… but because you have no real way of tracking it, you don’t know what your ROI (return on investment) actually is. Did you break even? Make a profit? Who knows?
And what if you run a "buy one - get one" offer? With traditional advertising you have to PAY for the ad... and still eat the cost of the discount when the customer comes in to use it.
Wouldn’t it be great to have a way to advertise that not only GUARANTEED you a result… but one that was completely trackable?
And one that cost you NOTHING to run your "deal?" Meaning the exposure was FREE and you only paid for results?
If you are an experienced business owner, you know (as we already said) that one of the hardest things to do in business is to get a new customer to do business with you the FIRST time. But it is EXTRA hard if your business is a "personal" service, like a spa, hair salon, etc. After all, there is a level of "trust" that has to be there. Most people will not "try out" a NEW personal service without a compelling reason - a referral OR a deal. But... once you get that customer to try you out, it is 10-12 times EASIER to get them to do business with you again, or UPsell (increase the amount they spend with you, or the REFERRALS they send you) than it is to get another new customer.
Now... let's say you DO this program (smart cookie!)...
If you are a SAVVY business owner, when you get your new customers through these programs to do business with you that first time, you will also have a STRATEGY to continue to market to them later. For example, capturing their email address when they redeem the certificate, and staying in touch via email marketing and social media (like FACEBOOK), is a low cost way to make them part of your "family," keep them aware of what you are doing, and increase the frequency of their repeat business and… REFERRALS.
Wouldn’t it be great to have a STRATEGY to get high-quality, high LTV clients in your door… and keep them coming back?
Besides that this concept offers a GUARANTEED result for the businesses advertising effort and budget, there are other benefits to this concept that are particularly advantageous for the merchant.
Discounting on your own can be dangerous. See… most businesses play a dangerous game when they discount or “coupon.” The downside of offering coupons, or discounts YOURSELF on a regular basis is that it can potentially "devalue" your product or service in the consumers’ eyes and "train" them to only do business with you when they can get a "discount" (think “pizza” and you know what I mean). However THESE types of programs are offering a limited time deal, something the consumer can see they are not going to have access to on a regular basis, so there is no risk of creating that perception. In fact, quite the opposite, as there is a sense of urgency created because consumers know they generally have only one shot at the deal (each site currently offers only ONE “deal” per day) or, in the case of the "Side Deelz" there are a limited quantity available.
Even a high end business can do this program without worrying about damaging their price integrity!
Another brilliant aspect of this marketing concept is that, no matter how many people get "the deal,” many more eyes SAW the deal. For instance, the merchant may have had 20,000 "eyes" see them... many of them people who never even knew that business existed before. They got great exposure, even if only a small number of those people "bought" the deal. Over time there will be a "residual" benefit; as many of those 20,000 “eyes” will do business with that merchant in the future, now that they are aware of them. In this regard they are getting the same benefit they would from “traditional” advertising – only this aspect costs nothing at all. YOU are only "paying" for RESULTS!
But the BEST thing about this type of marketing is that the people who did get "the deal" are immensely "qualified" new customers for that business (self selecting). They would not have gone to the trouble of getting that deal if they were not that businesses "target" demographic. If the business is smart and savvy... they will go the EXTRA mile when those people come in that first time... making sure they are GREETED personally by the owner or manager and make to feel like VIP's, maybe giving them another "gift" or perk to be redeemed on a second visit. AND on the second visit... perhaps another perk to get them back a third time. Research shows that doing something three times creates a "habit," so this marketing strategy has a built in opportunity to create a habit in the consumer... and even TRACK the results.
Because I have experience with how successful these programs are for merchants, I highly recommend, if you are a business owner, that you contact Groupon and Living Social and apply to get on board with them.
To get YOUR business on board with DailyDeelz.com ...simply contact ME... Sue@ConnectionsGroups.com or 407-443-0348.
Keep in mind not every "deal" and merchant is accepted ... and all of them DO have a waiting list for merchants.
With Groupon and Living Social... If you do get accepted, keep in mind that your offer might not be “queued up” for weeks or months and, most likely, will not be offered more than once. This is another reason you should apply to more than one of these type of programs.
With DailyDeelz.com, however, because of ConnectionsGroups.com affiliation with them, we have a bit more "pull" and they have a bit more flexibility.
When you come on board with DailyDeelz... through ConnectionsGroups, you also get an EXTRA Perk...
In addition to the DailyDeelz database, and distribution... you also get instant EXPOSURE to the Connections Groups 20,000+ members in Central Florida.
While our "eyes" with Daily Deelz may be a bit lower than the two giants (they guarantee a minimum of 50,000 eyes and Daily Deelz has about 30,000 in Orlando right now), since you only “pay” for RESULTS… what does it matter?
Additionally I would also guess that our “eyes” are a more affuent demographic since Connections Groups is made up of professionals and business owners while Groupon and Living Social are comprised of the broad spectrum (age and income wise) of the internet user. This aspect will be particularly valuable if you are a B2B business, and frankly, last I checked... Groupon or Living Social do not even accept B2B businesses, as they are geared toward the consumer.
So… jump on board with Connections Groups -Daily Deelz!
GOOD NEWS! As a member of ConnectionsGroups.com when you do the “DailyDeelz” program… we will offer a few additional benefits over and above the Daily Deelz agreement with their merchants...
1) FREE marketing consulting (see www.SueCopening.com for Sue Copening’s marketing background).
2) Unlike Groupon or Living Social, we can better structure your offer so that you don’t run the risk of getting “overwhelmed”… meaning we can limit how many certificates we sell at any one time (plus we can offer them more than once, if need be) allowing you to spread this new business over time. This will give you the peace of mind of knowing that you will be able to offer your new customers your BEST customer service and attention.
3) We will give you MORE advertising exposure in the ConnectionsGroups.com email newsletter and will list you on our web site for a minimum of SIX MONTHS. Your “deal” might be over… but your exposure is NOT!
4) Cash back - Affiliate program. Daily Deelz give you CASH BACK for referring others to Daily Deelz. As a Connections member we get you set up for this, provide you with BANNER ADS for your web site and a stragegy to grow your own network.
5) B2B - business to business category! If you are a printer, accountant, payroll services company, promotional products company ... we can "hook you up!" Your LTV in a B2B company is generally even higher than a normal consumer relationship, so this type of marketing is even MORE valuable to you.
Regardless of whether you get on board with all three programs, or just one, these “Deal” programs offer you a GUARANTEED way to get a new customer in your door with the opportunity for your cost to be minimal, break-even, or even profitable, right from the get-go!
Low, or no, cost
Free marketing consulting
It’s a win-win-win for all concerned, and for we consumers ready to snap up the “deals” - or build a second residual income ... in this economy... who DOESN'T want to do that?!
For more information about ConnectionsGroups.com
and the DailyDeelz program: 407-443-0348
or Sue at: sc@ConnectionsGroups.com