USA Today: Daily coupon deals may not work for buyers, sellers

Trying to keep up with the influx in customers a daily deal brings has proven too much for some to handle. A December post by news site Daily Deal Media listed businesses whose daily deals went awry in 2011, including two that closed after running a deal without honoring coupons.

“Companies are making risky, risky deals they can’t make money on, and then they go out of business and everybody suffers,” says Boyan Josic, CEO of DailyDealMedia.com.

To keep up with the demand for deals, some deal sites are turning to third-party agents, who take on the job of striking a deal with a merchant, and then sell the offer to deal sites.

Josic says these outside consultants will, for example, purchase millions of dollars worth of gift cards from a merchant, then sell the cards to a daily deal site or multiple sites. The daily dealer and the outside consultant split the commission.

Read more at USA Today

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