Are Daily Deal Sites Dying Off? - HotHardware
Are Daily Deal Sites Dying Off?

Are Daily Deal Sites Dying Off?

No one will deny that Groupon struck gold by bringing daily deals to locals all around the country. But like the original gold rush, not everyone who goes in search of riches ends up finding it. Groupon knockoffs are having a tough go on the Web, and so are deal sites in general.

According to a report in The Wall Street Journal, roughly a third of all daily deal sites in the nation have called it quits so far in 2011. To attach some hard numbers to that claim, WSJ says exactly 170 out of 530 daily deal sites have fizzled out so far, and there are still more than three months left in the year.

Part of the problem is it's simply too expensive to run a daily deal site. It takes a great deal of marketing to get the word out, and even then, there are so many competitors that it's easy to get overlooked. Consider that Groupon invested upwards of $378 million in marketing for the first half of 2011 alone, up from $35.5 million one year prior. And then there's the employee costs, commissions, and so forth.


Even Yelp isn't immune to it all, which announced plans to scale back its daily deals efforts by cutting its staff in half. Part of the problem with Yelp, however, is that it would email "local" deals that weren't always just down the street or even down a few blocks.

"The space faces some real challenges... while consumers love it when you can offer them a great deal nearby, they're not so stoked when you email them a restaurant deal for a place in Berkeley, CA when they live across the Bay in San Francisco," Yelp explained in a blog post.

Do you subscribe to any daily deal alerts? If so, which ones are you favorite?
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Well really this kind of stuff has been around for a while in different flavors, Daily just got the notice, and I have noticed lately a lot of local knock off's. These local one's actually make more sense to me as Groupon always sends me stuff in Atlanta. Yes; I live in Atlanta, but I live in the NW suburbs, and Atlanta is big so generally the deals are all 45-60 minutes away from me at least. I also live 5 minutes from one of the largest malls in the region but none of the Groupon deals are for my area directly, not to mention there is a major University 5 minutes from my front door if that far, so the population in this area is stacked, but there is nothing Groupon wise for it. 2 days ago I got a Groupon knockoff which specifically deals with my area (Kennesaw), and that makes sense to me as well.

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Daily Deal sites have their place. I always look around a little before I buy, just to see what's on sale, and as a result, I've saved some big bucks at times.

I may not look at them all of the time, (except for the HH daily deals) but when I need them, I'm glad to check them out. I consider them to be a good resource.

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I just look up deals for online shopping :D. HH has its deals but items i want is not usually up, i visit slickdeals daily and see whats up :D

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I sometimes have some parts on a 'wish lists 'and get notified when some prices change. But I do take a bit of time to check a bit elsewhere as well. Always making a habit lately of seeing the HH dail deals as well.Sometimes the items may not be especially suited for me personally but I can often think of who may be interested and share that deal with them via socail media and they mostly apreciate the head s-up as well.

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"I have always used Logicbuy for about a year or two, Im a also a registered member.The other ones that I'm subscribed to , is Newegg, Tigerdirect and Retrevo. I like Newegg the best out of the last three, they always email me with great discounted sales and specials. Retrevo is good also."

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I have used daily deal sites in the past but found they often sent out far too many e-mails for my liking. I have seen some great deals and heard of friends getting great deals on items from w00t and Groupon.

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Yeah! I subscribe to 5 plus, but only 1 sends out e-mails dailyYes & the other does it at least once a week. As for the rest maybe once a week to once a month. Lately I have bought a Microsoft Office Home & Student retail boxed software plus a pack of Corsair ram with 4 x 2 GB sticks of ram just for spare (the ram that is for spare). I got those two from the one that sends an e-mail out once a day to me. Although when I went up to eBay I seen another few copies of Microsoft Office Home & Student going for several bucks cheaper & also with free postage.Angry                               Anyway what do you expect in these times of an economic downturn or for what I prefer to post up here is, Depression that is going to get worse.Sad    Yes! This makes me sad & also I am self employed. So I feel it more than others that are still in either salary or wage employment.Beer

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gazd1:
This makes me sad & also I am self employed. So I feel it more than others that are still in either salary or wage employment. in these times of an economic downturn or for what I prefer to post up here is, Depression that is going to get worse

I can feel your pain. My wife is a school teacher and her district has given no pay raises for the last 4 years. I'm retired, and although I do get a monthly check, that amount never changes, never gets to be less, but it never goes up to compensate for inflation either.

Five years ago we were doing well, but now it's getting harder to make everything work for what we make every month. We used to be able to save some money every month,....but not anymore.

Your are right when you say that it's only going to get worse ("Depression that is going to get worse") for the working class of America. The DC idiots will make sure of that. They only serve big business and corporation's interests these days.

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