Since their start in 2008, collective buying sites have multiplied in number. Now, there are many of them around the world, covering every city where online buyers are present. The idea of collective buying was first conceptualized by Andrew Mason, the author of Groupon, a company owned by ThePoint in the U.S. Coined from the two words “group” and “coupon”.

Groupon’s marketing strategy is to give discount coupons to a group of online customers. With collective buying, products are sold on a wholesale basis thus making businesses thrive with a number of deals each day.

Notably, the idea of group coupons allows businesses to spend less on advertising. Appearing as daily deals, the product or service can be seen on Groupon sites where customers can learn about it. Considering the way Groupon displays the deal of the day, this form of advertising is even better than that which appears on TV. However, only those who visit the site or subscribe and receive an e-mail notice, will see it.

It seems much growth has taken place from links on social networking sites have been effective in spreading the word about “the deal of the day. Likewise, customers can search for Groupon deals in their city to ensure validity of the coupons that they will get. To find great deals, customers should key in the word “Groupon” and their state or city or vice versa, e.g., Groupon NY, Groupon DC, Groupon SF, Austin Groupon, London Groupon, etc. These keywords should return results for the particular Groupon site they are looking for.

Referrals from buyers also work as a marketing strategy at Groupon. Buyers can refer friends who may be interested in buying the same product they did. The good thing about this is that every referral earns the buyer $10 in Groupon bucks to be credited to his/her account.  These bucks can only be used in purchases. As such, instead of just buying or getting deals, customers also get to earn something from Groupon. Imagine referring ten friends for a deal in just one day. That could earn one $100 in future purchases by just giving referrals. This is what attracts many online buyers to get deals from Groupon.

Other sites such as BuyWithMe and LivingSocial, which offer low-priced deals are being left behind because of this Groupon opportunity. Particularly in BuyWithMe, customers can also get a $10 credit but this is good only after referring a first-time buyer.

Recently another company by the name of The Customer Advantage has entered the “collective buyer” market. They have a much higher incentive for their subscriber base beyond the Groupon bucks program and are in fact promising to pay a significant portion of their earnings back to those who refer and promote them to their friends.

The Customer Advantage has also set their program up in such a way that it makes a great fundraiser for any organization looking to raise significant funds.

Getting things at discounted prices makes the deals very attractive to online customers. Unlike in other promotional sites where some purchases are on sale while others are not, all things that go on Groupon sites are discounted. Discounts are quite big, ranging from 50%-70%, so it is recommended to check their sites once in a while to see the best deals they have. With the way collective buying sites work, it will not take long before online buying becomes a better way to make purchases.

The success of Groupon and other sites like The Customer Advantage will eventually change the way we live. In the future, let us hope that Groupon, BuyWithMe, LivingSocial and The Customer Advantage and other online sites will be able to make deals with every establishment in each locality so that people could have discounts on practically everything they buy. Thanks to Andrew Mason, the creator of Groupon, the discount genius!

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Denver Deals
The Customer Advantage
Groupon
Andrew Mason
BuyWithMe

Yes it’s true…. More than one and a half years back I was contacted by Groupon CEO Andrew Mason. Groupon is a company that is now reported to be growing faster than Facebook! You see, Groupon had just started in the city of Chicago and was achieving success. I had written and inquired about the possibility of beginning Groupon in the town of Denver, company. The idea charmed me and I could see the chances.

Groupon, as I have said was experiencing success and was exploring how they could roll out on a national scale. This was the reason for the call and informal interview. I never heard back from Groupon after that. I can only guess that they decided to hire and operate fully from their offices in Chicago instead of working with people throughout the U.S.

Generally, Groupon Reviews have been extraordinarily positive. I have researched one or two Groupon review sites and have found minimal negative experiences. In the two years of operating and expansion they have caught the attention of the media. Just latterly Mason turned down a three billion dollar offer from Google.

As of the date of this writing it is announced that Groupon has roughly 40,000,000 subscribers and continues to grow. Other firms have followed the successful model that Groupon started and have also experienced success. It appears that buyers everywhere love the savings and advantages that they offer.

Lately a new and augmented version has come on the scene. The name of the company is “The Consumer Advantage,” started by entrepreneur John Milanoski. What makes them unique is that they have chosen to go past the one time referral of $10 that Groupon gives. They are instead following an affiliate model where every free customer can be paid five percent from the purchases of private referrals they introduce the program to. It does not stop there ; customers receive additional commission payouts from the referrals that come from their buddies too. This continues to take place down five generations of referrals.

This will add up to significant revenue for the average person who simply tells three friends and each of these chums refer three and so on and so forth.Imagine earning five percent from the purchases of thousands of people. Can it occur? Groupon started with four hundred subscribers and quickly grew to millions with no serious incentive.

Although Groupon Reviews have been positive I believe the following differences offered by The Consumer Advantage give it an A+ rating.

Here are the reasons

1. Thanks to the commissions being paid out to customers they’re that much more inspired to support and respond to local companies that are promoting through The Consumer Advantage.

2. Businesses can now monetize their buyer base by referring them to subscribe to The Consumer Advantage. The potential response of their customers and their referrals to specials from other local firms adds further money. Think about it, Joe’s Sandwich Shop has referred 1,000 buyers to The Consumer Advantage. Each of them have referred others and these additional folk have continued to refer hundreds more. These folk will be replying to a 50% off at Sally’s Flower shop. Joe’s Sandwich shop continues to benefit from these purchases, even if they happen to be in another city or state.

3. Non-profits, clubs and organizations can take part too. This implies candy bar sales are gone for good. Simply subscribe the components for free and give them some encouragement to share it with their pals and family. The organization can make thousands of bucks a month from several generations of referrals simply taking advantage of seriously discounted offers from area merchants.

Groupon reviews Vs The Consumer Advantage

Although Groupon has a established history, TCA offers many advantages. The most important difference of Consumer Advantage is of course the ability to earn by referring other members who want to save 50% or even more from area businesses.

Any club, organization, church, ministry can profit.

Do you know of a club, organization, school or church ministry that needs funds? The good news is that you no longer have to sell candy bars, do catalog sales or handle cash. The Customer Advantage has made it so simple. They have a set it and forget it program… Roll it out to your organization and it will pay for years to come.

As a fundraiser, it differently gets my vote!