How to Start An Online Coupon Business - Background About This Business:
An online coupon business provides coupons for entertainment, restaurants, various services and much, much more.
Some of your visitors are true bargain hunters looking for the best deal possible every time they spend money.
Other coupon site visitors are looking for the one time reduced price when they have a special purchase need.
The business owner must locate coupons, meet with manufacturers and work constantly to fill orders and keep their website up to date.
Tasks And Skills Needed To Run an Online Coupon Business:
Business Specific Tasks:
If you are planning to do all the business tasks or hiring or subcontracting tasks, here's a list of tasks that need to be attended to when it comes to the business side of running an online coupon business:
- Bookkeeping - you must keep excellent records, for tax purposes - This task is Performed Daily/Weekly
- You must keep records for all transactions, even barter between users as well as yourself.
- Knowledge of working with a database for tracking coupons and their expiration dates
- Knowledge of website development and graphic software
- You must make sure everything is done in lawful and ethical manner
- You must know how to properly market and promote your online coupon business
- General Internet skills
Industry Specific tasks:
Same as above if you plan to do everything yourself or get help. Here are some more of the tasks necessary to operate an online coupon business:
- Weekly emailed newsletter to inform members of new and expiring coupons
- Finding online and offline coupons and organizing them in a database
This task is Performed Daily/Weekly
- Collection of coupons through magazines and newspapers
This task is Performed Daily at Varying Hours
- Scanning and uploading coupons to the website
This task is Performed Daily
- Mailing of non-printable coupons
This task is Performed Daily
Approximate Daily Hours Needed To For An Online Coupon Business:
General Hours of Operation: - When your business is open - You're looking at 9:00 to 5:00
Hours Needed to Prepare - Before Opening and After Hours Activities - Operating any type of website with products for sale or trade requires additional hours to categorize coupons, grow newsletter list, and prepare mailings; approximately 12 hours total per day.
Number of Employees Needed To Run An Online Coupon Business:
Minimum Number of Employees - During the Start Up Phase - You can run this business by yourself
Number of Employees - Once Your Business is Up and Running Successfully
- Website maintenance
- Graphics
- Bookkeeping
Skill Requirements for This Business:
Website design
Graphics background including scanning and uploading documents
Knowledge of UPC code scanning
Licenses:
Though each state/province city and town have different laws, you must contact your local office to get the proper permits to operate an online coupon business. Remember that coupons cannot be bought or sold; however, you can charge a membership fee for access to print online coupons and newsletters announcing the release of new coupons.
Approximate Minimum Start up Cost:
Bare essential: - To start this type of business you'll need approximately $15,000 to $20,000 to purchase a computer, scanner, printer, internet access, website hosting, and database software.
Minimal exposure - If you want to expand your business, you are looking at $25,000 - $100,000. With this amount of funding, you'll be off to a good start with better equipment, a better equipped facility and some operating money to run and market your business.
Necessary Equipment to Run An Online Coupon Business:
Necessary Start-Up Equipment:
- Computer
- Scanner
- Printer
- Internet Access
- Option: You could set up and maintain a shopping cart system for the exchange and trading of coupons. Although money isn't being exchanged as with a regular online checkout system, you still need to be able to set a system into motion for the transference of physical coupons that can't be printed online. A shopping cart system would be the most effective way to do this as all transactions (trades) are also recorded in case of any disputes or discrepancies.
- Database software
Supplementary Equipment: - Equipment that you can acquire to once your business is off and running:
- Fax machine
- Desk
- Filing cabinet
- UPC code scanner
- Laptop or tablet computer
- Cell phone
Monthly Expenses To Consider:
- Rent
- Phone (some prefer a toll-free number for business-only)
- Internet access
- Business insurance
- Advertising, including website design and hosting
- Professional Fees - accountant, webmaster
Special Requirements For An Online Coupon Business:
This type of business requires constant attention to the release of new coupons from various retailers in various on- and offline media.
Pros And Cons:
The Pros of Running an Online Coupon Business
- Potential to be a lucrative business
- Room for growth such as incorporating local maps with retailer coupons attached
- Ability to get great deals through retail clients
The Cons of running an Online Coupon Business
- Many hours required to track coupons
- You need to develop a good client base in order to make it worthwhile
- You need to travel to find local and national retailers to participate
- You may have to hire people such for graphics and website maintenance early on if you don't have the experience
Type of Customers You Need to Attract:
You can start by becoming a member of local network groups such as the Chamber of Commerce and other business groups. The type of customers that you're looking for are business owners who are looking for promotional opportunities as well as consumers who collect and use coupons.
Online Coupon Business Statistics:
 01/25/2010 Press Release - Inmar reported today that annual coupon use is on the rise for the first time since 1992 and coupon distribution hit the highest level
recorded since the company began tracking trends in 1988. For the first time in 17 years, consumers used more coupons than they did the year before, with 3.3 billion consumer packaged goods coupons redeemed, an explosive 27% increase over the 2.6 billion redeemed in 2008.
The rise in coupon use started in October of 2008, coinciding with news of the U.S. financial crisis. That has led to five consecutive quarters of double-digit growth (based on percentage change from the same period of the previous year).
Coupon Business Revenue:
Straight trading of coupons and coupon newsletter publishing with membership can bring in anywhere from $500-plus per month, depending on how many other services you might want to offer in conjunction with the coupon trading.
Online Coupon Business Resources:
Industry Specific websites:
Popular Coupon Sites
Equipment:
Barcode Scanners Equipment and Software
Supplies:
Graphic Software
Database Software
Stamps.com
USPS
Forums:
Coupons.com
CouponMom.com
CouponCabin.com
RetailMeNot.com
Associations:
U.S. Chamber of Commerce
Related Businesses and Ideas:
- Design and print newspaper inserts
- Ad design/layout
- Rebate programs
- Small business maps per town combined with coupons
- Write an e-book on couponing strategies
See Also:
 Starting A Business Checklist: This section helps you cover all bases when you are getting in to your own business.
 Complete List of Business Ideas - A list of all our business ideas that you can use to stimulate your entrepreneurial spirit. Choose from over a hundred detailed pages.
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