Joe Brown wrote “focusing on a single discount may trigger the subsequent world-wide-web gold rush”.

This statement was true in case of James Black when he posted a colonic irrigation session in half-price at a site where he runs. He is not expecting that it would be a great hit.

Usually, when people heard of better deals they immediately rush for it. Another example:

Five hours after the deal was posted on Jumponit, there were 530 vouchers sold for $49 session in North Bondi Clinic.

Daily deals can also be an effective tool for advertisement. Groupon a global leader in net group getting was offered by Google of $6 billion previous month. LivingSocial, the second player joined forces with Jumponit. Netus and Ten Network – a net investment enterprises venture in Our Deal. Nine Entertainment Co has also launched its very own website, the Cudo and they are taking their advantage in media empire in promoting it. Meanwhile Spreets have gained investors from Facebook.

These sites aim to provide a single discounted deal. This deal is not only beneficial for customers but also for companies. The customers will get the best deals and the companies are provided the opportunity to expose their products and services in a large number of audience.

Groupon pioneered such business model which is now being imitated by many. You can find plenty services of this kind in Australia.

Rigby is not the only one who predicted the impact of this kind of business  strategy. The five leading daily-deal sites are Jumponit, Spreets, Cudo, LivingSocial and Scoopon. Rigby said that it would be difficult for small businesses to compete with the larger ones.

The fact that merchants need not to pay for upfront expenses gives an edge for smaller companies to choose daily deals as a form of advertisement rather than do conventional advertising. The only expenses in this type of advertising is the payment of the operators who do the day-to-day offers.

However, Cudo is using mainstream advertising to promote their websites. Billy Tucker, Cudo’s chief executive said their objective is to get their deals in front of the largest possible audience.

Ten on the other hand is using The Circle, its morning program to promote their offers from OurDeal. They are designing their deals in a way that will fit their audience.

Spooner admits that their competitors’ marketing strategies are effective however, they believe that nobody has formulated the best model yet. Spooner are studying every possibilities of improving their own model.

However, not all companies are capable of producing or delivering the promise of that daily deal so operators are carefully handling things preventing to produce demand that cannot be satisfied as this greatly affects the image of the website.