Small business promotion changed by new model

Most Americans have become familiar with daily deal sites, such as Groupon and LivingSocial, which offer price cuts on merchandise. With these deals gaining popularity, Buckaroo, the leading promotion platform for small businesses, recently started a boycott of revenue-sharing business models.

Buckaroo recently became the leader to the Anti-Groupon movement by eliminating the high costs of online advertising that businesses are often forced to market through.

The small business promotional service company gives owners of starting businesses a place for all of their online advertising needs, allowing merchants to post deals for free or purchase with e-mails that are aimed at local businesses in the recipient's area.

"Buckaroo Deals range from discounted luxury getaways to 20 percent off apple smoking wood chunks," said Alan Fisher, chairman of Buckaroo (Iron Speed, Inc.). "Our goal is to help businesses grow their customer base by targeting people that are genuinely interested in what they're selling. This is drastically different from daily deal sites like Groupon and LivingSocial."

When companies sign up for Buckaroo, there are no hidden fees or costs to deal with in contracts. Business owners can also grow their contact list by exporting lists deal sign-ups from their accounts.

According to TheRealTimeReport.com, Groupon nearly doubled the number of its subscribers in 2011, increasing its subscribers to 115 million, of which about 20 percent have made a purchase. With the large number of users that utilize the revenue-sharing model business, small businesses may find it more difficult to expand their business promotions.

Groupon has an obvious appeal for consumers who would rather pay a fraction of the cost for a service as opposed to the full price. Groupon also uses its large platform which is an appealing outlet for small businesses looking to gain more attention from consumers through the leading discount website. Redemption rates by consumers also are thought to be anywhere from 60-90 percent, which could drastically increase a business' reach and popularity in a short span of time.