By Peter Briffett, MD of LivingSocial
•Look at the group buying business, their website and how your brand will be represented. This is a very competitive market with only a few big players. Expect a representative of the company to come and see you, ask to see past deals the company has run, as a measure of success, and discuss how many deals they expect to sell for you. Ask to speak with previous merchants they have worked with.
•Be very wary of signing exclusivity agreements with any group buying site. It is your business and it is up to you to decide how to promote it. If the promotion goes well you will have no hesitation in working with that company again in the future.
•Confirm the exact details of the deal that will be offered i.e. the percentage reduction to be offered, the cost to the consumer to buy the deal and when it can be redeemed. E.g. £20 off £40 of food and drink (per person) (valid for 12 months). Make sure all these details are included in the fine print of any contract you sign.
•You should expect to know the exact date that the promotion will run a week before your deal goes live. You should also have a chance to check the copy and graphics to make sure your business is represented in the best way possible. Request a proof before your deal runs.
•Make sure you understand the payment terms. You should expect to get paid in full for the entire amount of vouchers sold, regardless of redemption rate. This also ensures the group buying platform doesn’t massage its figures for number of deals purchased.
•Finally, make sure you are fully staffed on the day the deal runs as you can expect many phone calls and interest from potential customers about the deal.