Social media websites keep  popping up like wild flowers. Groupon emerged in recent years as a  unique kind of social media concept. You get incentives to get your  friends to set up accounts at Groupon.com. Each morning you receive an  e-mail deal from Groupon, typically half off a product or service, based  on your geographic location. Here’s the catch—in order for you to get  the deal, enough people have to buy in so everyone can get it. So  essentially Groupon gets friends talking on other social media sites,  like Facebook, about products and services in their community.
LivingSocial is now on the scene utilizing a similar model. They’ve  recently made a name for themselves partnering with Amazon. Here’s their  story and what you, as a small business owner, can take from their  recent success.
Partnering with popularity.
LivingSocial went to Amazon, part owner of LivingSocial, to make a daily  deal for all markets—one day, $20 gift cards for $10, over 1.3 million  sold. When you’re trying to make a name for yourself, it can be  beneficial to partner with a more known and respected brand. What brands  in your local market can you partner with to mutually boost your  businesses?
Spending money to make money.
It is reported that LivingSocial purchased the Amazon gift cards at full  price to make this deal. But now the company has 1.3 million people  attached to the LivingSocial brand. Of course the gift card investment  cost them, but now they’re banking on repeat customers to get a return  on the marketing investment. As a small business owner, you have to  think about the objectives of your marketing efforts and ensure that you  can realize measurable results.
What works for your competitors…
Late last year, Groupon took in more than $11 million on a similar Gap  campaign. LivingSocial decided to work with a bigger brand to get more  customers. So, as a business owner, you need to keep an eye on your  competitors. How are they marketing their business? How can you do it  better?