Editor’s note: This article was first published in November 2010, at the height of daily deal and group-buying sites. Offerum’s terms, with a 24-hour promotion, 75% paid to the business and a 25% commission, are from that time. Tuenti later stopped operating as a social network.
When certain types of business face a drop in sales, we need to turn to new ideas to increase our company’s sales, even if only for those periods when spending falls in practically every sector.
A reader sent me a message explaining how several websites work that help our business with this tough task. I didn’t know these companies existed or what service they offered, but after reading her email, it’s clearly a good idea for giving a business or company immediate cash in difficult times.
Specifically, our reader works with Offerum and tells us she’s happy with how it works. This isn’t meant as free advertising, but from what she told me, I think it could be very useful.
From what I’ve seen, the idea is aimed at, and may be more attractive for, businesses in hospitality, tourism, beauty treatments and anything else that can bring in customers by publishing an offer at 50% off, or even up to 90% off.
You send your promotion to Offerum, and they promote your offer for 24 hours, getting it to users of social networks such as Twitter, Facebook and Tuenti (a Spanish social network). I imagine they also have other ways of getting the offers known.
The customer pays Offerum directly, and Offerum pays your business 75% of the sale amount (50% right away and the rest after 30 days). That means Offerum’s commission is 25%, which is important to keep in mind when you put together an offer so you don’t lose money.
The result: a large, potentially massive demand from customers, according to our reader. Without a doubt, it’s an excellent idea for a business going through a rough patch in times of crisis, since it gives you a chance to increase sales and raise cash.
While I’m at it, here’s something we should keep in mind in our business ideas, as this example shows:
“If you have a good idea and give good service, you create a positive ‘viral effect’. That viral effect gets customers talking about you without you spending money on advertising.”
Further reading
- Ideas to improve your business’s sales in 3 simple steps
- How to attract your first customers to your business
- 5 ways to grow your business
- How to run a business in times of crisis
Featured image: Artem Beliaikin, CC0 1.0, via Flickr.
