Many business owners who offer "daily deals" promotions wind up losing money, failing to win new customers, or driving away loyal patrons when the coupon crowds descend. Nevertheless, the marketing trend is here to stay. That's the opinion of Utpal Dholakia, professor of management at the Jones Graduate School of Business at Rice University, who has become something of an expert on the expanding industry that includes companies such as Groupon and LivingSocial.
Dholakia, who first began researching and writing about small businesses' use of discounted online coupons two years ago, says he was pessimistic about their sustainability. "People are offering their products at half price and only getting one-quarter of the revenue," Dholakia tells Yahoo! Small Business Advisor. "I wrote an entire article this time last year looking at specific deals, and I was extremely negative."
A year later, however, Dholakia says he has found some business owners who are happy with their returns on dailyRead More »from Daily deals promos better suited to certain businesses