Following the SoLoMo (Social Local Mobile) trend, this 'Save, Share, Earn!' site suggests that users canvass businesses in their neighbourhoods to get them to make special offers. The user then gets a commission on sales.
What can an e-commerce website offer in addition to channelling site visitors towards major deals on products and services through grouped purchases? Getting them involved in the actual sales process, perhaps. This is what the creators of AllStar Deals have come up with. The principle is simple: a site visitor first registers to become a ‘deal scout’ with AllStar Deals and then goes off to talk to businesses in his/her neighbourhood. S/he reaches agreements with bars, restaurants and other local businesses on a discount price or a buy-one-get-one-free deal, for instance, which s/he then offers on the website. S/he then becomes the official intermediary between the business owner and the site, and receives a commission on any sales made.
Co-creation and social networks
There’s another option open to those who sign up. If a subscriber doesn’t want to go out scouting for deals or perhaps doesn’t manage to arrange any, s/he can suggest deals that are already up on the site to friends and acquaintances via the social networks. Using this recommendation route, registered users receive a commission on all purchases their friends make on the site. These are just a couple of the ways in which customers can be brought into the process and help reduce costs - on the one hand reducing the cost of selling the site’s service to local businesses and on the other, cutting down on advertising and communication expenditure.
Small businesses, large customer base
And of course, this approach can be of great value for the local small businesses who sign up. As with all ‘deal-of-the-day’ sites, businesses can post deals and so get themselves known and reach new customers for free. But here they can also let their own customers do all the work. AllStar Deals has just signed a partnership agreement with the application provider GPS GTX Corp, looking to increase its marketing efforts and recruit more subscribers. With over 1.2 million members in 145 countries, Locimobile (GPS tracking apps, owned and operated by GTX Corp) should help bring in extra customers.