A number of Australian companies have successfully adopted a business model based on online coupons.
The model, derived from American companies like Deal Catcher and Reebonz, operates by negotiating low cost, bulk deals with merchants and marketing these deals to large groups of customers, and is estimated to be worth approximately $5bn p.a. in the US alone.
Australian companies like Jump On It, Catch of the Day and Scoopon use social media to amass tens to hundreds of thousands of followers, and then market virally throughout these networks. Jump On It alone boasts a Facebook following of over 450,000.
Offers range from experiential products like days spas and movie tickets to physical products like laptops and phones. Offers also vary depending upon the city and only last for 24 hours at a time.
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