Avi Marko runs the Brooklyn based KidsSocks.com. His first deal, reports the WSJ, was with Mamapedia brought an big traffic boost, 600 customers, but with half the revenue going back to Mamapedia, Marko didn’t make a dime.
Another special, through DealPulp.com, got 700 buyers, but ended up costing Mr. Marko $5000 in shipping fees because he missed the fine print.
“We used to just do a deal with everyone that approached us,” Dani Zoldan, principal of New York comedy club Stand Up NY, told the WSJ. “We’ve become more sophisticated on how to structure the deal.”
By partnering with the relatively new Gilt City, Stand Up NY was able to keep 70% of the proceeds, way better than the 50/50 split offered by giants like Groupon.
How soon before a competitive marketplace emerges where owners can bid on different kinds of deals?
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