ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Understanding Groupon and other Deal-of-the-Day Sites

Updated on June 29, 2011

There's very few people out there who don't love a good bargain. While coupon clipping and hitting the sales have been staples of savvy shopping for years, "deal-of-the-day" sites have become incredbily popular in recent years and are chock full of great deals for purchasers. Here's a brief overview of how these sites work and a rundown of some of my favorites. Even if you're already familiar with sites like Groupon or Living Social, you may find something new that you'd love to try!

How do these sites work?

Deal-of-the-day sites leverage the value of "collective bargaining" to get consumers a discount. Companies such as Groupon work with vendors (very frequently small businesses, but sometimes larger businesses such as Amazon) to create deals for consumers. Consumers receive a deal and the small business anticipates an uptick in their business.

These deals work differently than typical coupons in a couple of ways:

1. Consumers usually need to "opt-in" to the deal by purchasing the coupon. Typically, the coupon is worth a value that is far less than the value of the coupon its self (e.g., $10 for a $25 dollar gift certificate / coupon to a restaurant).

2. Frequently, the coupon is only available when a certain number of users purchase the coupon in a given period of time (e.g., 100 per day).

Once a minimum number of users purchase a coupon, the deal is "activated," consumers are charged for their purchase and are emailed a coupon for the event. The coupon tends to have an expiration date for some period of time (e.g., 3-6 months) and can be used at any time.

What types of offers exist?

There are several types of deal-of-the-day websites that exist:

  • General sites, such as Groupon, LivingSocial, Google Offers, and Facebook Deals offer consumers a wide variety of coupons for a number of products and services. Some examples of what is offered are: spa giftcards, restaurant discounts, gift certificates to stores, and sports lessons. Many offers are for things to do that a consumer may not try without the coupon (I've seen trapeze flying and teeth whitening services, for example.) and are designed to bring more trial users to a business. Sites like these are great for finding a new restaurant or experimenting with something completely different, but I would recommend only working with a couple at a time as they each tend to send daily emails.

My friend's huge lobster, purchased with a Village Vines coupon!
My friend's huge lobster, purchased with a Village Vines coupon!
  • Recently, niche sites have begun to offer deals in specific areas. For example, Savored (formerly Village Vines) offers members discounts on premiere restaurants. When purchasing a coupon to a restaurant, users make a reservation at the time of purchase, helping the restaurant guarantee seating. Deals on sites such as these may not be as inexpensive as on general sites, but can offer incredible bargains versus standard pricing.

  • In addition to coupon websites, mobile app companies such as FourSquare offer instantaneous deals for users at nearby locations. Using the gps on smartphones, apps like FourSquare are able to identify what businesses are nearby. Often, businesses will have special "offers" if a customer checks in at a location. Free glasses of wine, discounts on deals, or specials during certain hours are great deals to take advantage of using the apps.

It's definitely worth a try to dabble in one of these sites. Who knows, maybe you'll find a great deal on something new!


    0 of 8192 characters used
    Post Comment
    • juliebooly profile imageAUTHOR


      7 years ago

      You're welcome - it's actually called Savored now and here's a link to another post I have about the company:

    • xtinak profile image


      7 years ago from LA LA Land

      hi there! i've never heard of village vines..gonna check that out. thanks!


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)