Is it worth the effort when so many companies offer better programs in 2021 and beyond?
It is worth taking a deeper look at how Groupon is doing as a company, and the benefits offered by an affiliate partnership in order to make Groupon profitable.
Groupon’s affiliate program is worth the investment because it can be a very lucrative source of income due to the 10% affiliate commission. The brand is also well-known for its innovative marketing strategies. With enough click-throughs, the partnership can generate steady income.
This article will explain what Groupon is, how it works, and who benefits from it. The advantages and disadvantages associated with becoming an affiliate will be discussed in detail to help you make an informed decision about how much income a partnership could potentially generate and whether Groupon is worth your time.
What is Groupon?
Groupon was founded in 2008 during the recession. It is a marketplace that offers discounts and savings for groups of consumers. These discounts are usually only available to large groups, such as a club or company.
If enough people sign up for the advertised item or service, Groupon users receive a discounted price. The offer will be canceled if there is not enough participation.
Deals can be thought of as vouchers. They can be used in local businesses to get cash or can be used to purchase items on sale with coupon codes or promo codes online.
Andrew Mason, the founder and former CEO of the company, had a unique business style. Although he did not make a profit during his tenure, he certainly attracted interest from investors about its potential profitability.
The company was eventually made public after the initial controversy over the financial statements.
The executive board also hired a new CEO and fired Andrew Mason.
The company has been undergoing a restructuring to ensure it is able to adapt to changing business models and become profitable.
Your reputation is reflected in Groupon by becoming an affiliate and signing up for the Groupon Partner Network.
Groupon’s consumer reviews can influence the opinion of your website, blog, or social media outlet by the end-user.
It’s annoying, for example, when a user clicks on a link that doesn’t work and finds a product they like.
It is possible to be seen as unreliable if this happens more than once.
Groupon’s consumer perspective is therefore crucial in your decision to partner with them.
Groupon: How it works for consumers
Since Groupon harnessed its collective buying power, North American consumers have saved more than $35 million (over PS27 million).
This shows that group-buying with a small number of participants is both cost-effective and successful.
Each Groupon deal comes with an expiration date that indicates how long the offer will be available.
A countdown clock on the website indicates the remaining time before expiration.
Secondly, the coupon must be used before the redemption date.
Groupon offers these services to enhance the customer experience to satisfy and encourage them:
- Refer a friend and receive $10 (PS7.76 in Groupon Bucks) Coupons and promo codes
- Product marketplace discounts
- Local experience discounts
- Groupon Select is only available in the United States – A paid membership that offers special promotions to make it worth your while. It costs $4.99 per month (PS3.85) for a minimum of six months and then per month.
- Gift certificates
The merchant may also use cross-selling techniques to make a profit for the consumer, especially given the steep discounts.
For example, a merchant might suggest the best shampoo and conditioner for your hair if you have a Groupon discount haircut
Other times, the merchant wants to build brand loyalty so that the consumer will come back with friends and family to purchase the product or service.
Groupons for Merchants: How they work
Salespeople approach local merchants to offer Groupon as a marketing tool. However, small businesses can often lose money after a large discount (usually 50%) has been applied to their services.
Groupon’s cut also eats into the profit.
Groupon selects a region for its services. Salespeople reach out to local businesses in order to find potential partners.
It is believed that customers will refer friends and family to the business if they are introduced to it.
A small business can also benefit from Groupon’s large customer base and extensive advertising. This allows them to potentially increase their clientele.
A suite of products can be offered to the merchant as a tool for convenience.
Groupon MerchantOS includes a merchant reward program and an online booking tool to book events, services, or appointments. It also provides a low-cost infrastructure for credit card payments.
To avoid being overwhelmed by customers, the Groupon salesperson may limit the number of participants in a deal with a merchant.
Groupon is a great marketing tool for merchants, but it can lead to a loss of revenue as the discounts are so steep.
Sometimes, it is a better deal for merchants to run the promotion somewhere else.
Facebook and Instagram fan pages often offer discounts, promotions, or contests. Although advertising costs are lower, merchants will still be exposed to new consumers.
The merchant must justify the Groupon cost to ensure that they are able to generate enough business to support the partnership.
It is hoped that the customer will be satisfied with the product or service and return to the business again.
To determine whether this marketing strategy is worth the merchant’s time, they must make accurate projections. Groupon has been used by more than 1,000,000 merchants to date.
There is a difference between a Groupon Merchant or an Affiliate
Groupon sales work with the merchant to create and manage a great deal that will promote their business and provide benefits for the consumer.
The vendor code is signed and contains guidelines and requirements about how merchants should conduct business in accordance with Groupon and applicable laws.
The company has signed a contract to represent Groupon. A Groupon collaboration is a great way to reach more customers from a merchant perspective.
There is a risk of losing money due to discounts, Groupon taking a cut, and credit card transactions including fees. Before proceeding, merchants should plan carefully.
The affiliate, on the other hand, is looking to make steady monthly income by generating high volumes of clicks and sales.
An affiliate is an individual or small group of people who run a niche website, email newsletter, or social media site. This can bring in lots of clickable affiliate links to Groupon marketplace sales.
For more clicks and a higher income stream, you can also include advertisement banners on your website or email.
Affiliates do not have to pay any additional upfront costs as long as they manage the process.
How Groupon Works for Affiliates
A Chicago half-price pizza deal was the first Groupon to be offered. Groupon has been offering the best discounts for years. This is the perfect recipe for affiliate partnerships.
The terms & conditions are clearly explained on the Groupon website. You must agree to comply with the terms and conditions when applying to the program to become an affiliate. Otherwise, the partnership may be terminated.
It’s completely free to sign up, but you will need to provide both your personal and business information in order to receive payments.
Groupon will require you to enter the URL of your website, site type, traffic, category, and other information. The information will be processed and an email decision sent within 48 hours.
Groupon Affiliate Program Overview
You can earn up to a 10% commission if you recommend products or services on Groupon through your affiliate link.
The money-making potential is huge considering that there have been more than 1.5 Groupons purchased. Affiliates can also be paid for promotional activities.
Groupon has over 38,000,000 active customers who have made purchases from Groupon within the past 12 months.
Over 200,000,000 people had downloaded the mobile Groupon app by the end of the second quarter of 2020. This is where the majority of the sales have been completed.
How do I become a Groupon affiliate?
Sign up to create an account, wait for Groupon’s welcome email (which can take up to 48 hours), then start linking to your blog, website, or social media accounts.
It is free to open a Groupon Partner Network Account. You can also cancel the partnership at any point if it isn’t working out.
It is not necessary to have programming knowledge. It is useful to have basic knowledge because the reference code to your account will need to be copied and pasted into your email or website.
This will allow your customer to click on the link or ad and give Groupon the identification. Groupon will also log the activity and pay commission.
What affects the Affiliate Commission?
On the 20th of each month, payments are processed and directly deposited to your bank account. They include the activity of the previous month.
These items have an impact on the amount you are paid:
- Clicks from customers on your site can earn you commissions.
- Refer customers to earn fixed-rate commissions
- Groupon will issue you bonus money if you win contests or achieve sales promotion numbers.
- The transaction will be locked within 45 days of the order. However, refunds may be possible prior to that date.
- The minimum threshold must be exceeded by the activity. The 2 currencies that Groupon lists as payment options are the United States Dollar ($25), and British Pounds (PS75).
Groupon Affiliate Program: Advantages
There are many benefits to having an affiliate account with Groupon. Groupon offers a number of benefits including excellent customer support, marketing, and link coding as well as for analytics.
Groupon offers a unique opportunity for those who run a blog or online business to save time and money. The affiliate program offers the following:
- There are many active users around the world
- Groupon brand awareness active public relations campaign
- Regular promotions and marketing via all social media platforms
- There are many local services that can be linked to restaurants, services for beauty and health, auto repair and maintenance and lessons, cruises, home services, technology, and local seasonal activities.
- The diverse list of market goods to recommend
- Coupons and promo codes for both local and national merchants
- Deal of the Day
- Flash sales
- Tracking app for mobile devices
- Reports on sales and commissions
- Trackable banner ads, widgets
- Verification to ensure that all codes and offers are legal
- Great customer service
Groupon Affiliate Program: Some disadvantages
The affiliate payout may be lower depending on the business model. A 10% average commission would be paid if the affiliate links to high-end technology products or getaways. If the products are inexpensively priced, then the monthly minimum threshold of $25 (PS75), will be met.
Consider the following points to determine if Groupon is right for you:
- Many customers are only interested in buying once and then they don’t become repeat customers. Merchants can lose money and affiliates might not be able to get repeat customers.
- Small businesses in the local area are often unable to handle large numbers of customers. This leads to customer disappointment and poor reviews. A bad experience can reflect poorly on your partnership.
- Because deals are deep discounted or coupons are used, the commission payout is lower. Selling a high-ticket item, however, will result in a higher commission. This business model is all about making money by selling high-ticket items.
- There are many affiliate links. There are many ways for the consumer to grab Groupon deals from Groupon email, flash sales, or scrolling through social media.
- Others are also using the affiliate marketing model. Red Mikhail wrote the book “HTMO_ AMAZON FBA” which is a great example of how Amazon uses affiliate partnerships.
- Rich Williams, CEO of Groupon, stated that Groupon’s current focus is on building the local services market. Due to the CEO’s goals and company climate, buyers are less likely than ever to purchase merchant products. Affiliates can still link products but there are fewer items.
Getting started with a niche website
- Develop a niche-related website. To start your first website click here to learn more about it.
- Write lead-generating content. Make sure you write content that will generate leads. There are some questions people want to get clarified. They could search for healthy dog teeth or what harness suits best my cat. . You can make a list or write a review and tell people why they should buy product A instead of Product B. If you feel uncomfortable writing yourself you can hire a writer on Fiverr or Hirewriters.
- Optimize traffic to convert by using targeted and low competition keywords. My favorite tool to find keywords is Keysearch and SemRush. Take it to a free ride for 7 days by clicking here.
- Create an email list. You can build your email list by offering a free e-Book for example so you attract people to sign up. An email list makes it easy to engage your customers and make them coming back to your site. AI recommend using Mailerlite. They are free to use up to 1.000 subscribers.
- Put your affiliate links near the top. When you position your affiliate links near the top, it will be easier for you to convert. Make the links clearly visible.
- Make video. I would also recommend launching a YouTube channel as it will give you the extra exposure you need to take full advantage of the audience. On the platform, you can create videos reviewing the products and drop links below that will guide your audience to Nike’s official website. Fitness niche sites are also an excellent platform for Nike shoes and other products, but their content must be relayed with what you are marketing. Otherwise, you will lose authority and trust during the marketing process. There is a lot of free video-making tools out there like Blender, Lightworks, and Shotcut to name just a few.
- Always Monitor Your Conversions Rates. You can split test your landing pages or put the affiliate links in different ways on your page and see which one converts better.
- Use a clean template so your visitors won’t get distracted. You get free themes over at wordpress.org
- Take advantage of social media. Social media allows people to interact. Grow your social media engagement by posting regularly on your Facebook Instagram page or Twitter account. The traffic from social accounts helps also to rank in google.
- TAKE ACTION!
There you have it. Groupon, a 12-year-old company, has an average payout of 10% for affiliate programs.
There are many ways to recommend items and services on a site that has global brand awareness, making it an excellent choice.
All the bells & whistles are included: the mobile app, metrics, and monthly payments, banner ads, and widgets.
You can calculate your partner’s click-throughs by multiplying the number of purchases and clicks you receive on an average basis using Groupon’s commission structure.
A steady income is possible if your affiliate links are able to sustain a high enough volume of clicks, sales, referrals. This makes the Groupon Partnership Program an excellent investment in your time.