New York Biz Wise To Deal Site Dangers

In the booming market for daily and group deals, small business owners are finding they can play one service against

In the booming market for daily and group deals, small business owners are finding they can play one service against another, and get burned if they’re not careful.

Sign Up For Our Daily Newsletter

By clicking submit, you agree to our <a rel="noreferrer" href="http://observermedia.com/terms">terms of service</a> and acknowledge we may use your information to send you emails, product samples, and promotions on this website and other properties. You can opt out anytime.

See all of our newsletters

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?

New York Biz Wise To Deal Site Dangers