Discount coupon websites offer savings over sixty per cent on items

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HUNDREDS of thousands of people are taking advantage of an explosion in discount coupon websites to save an average of more than 60 per cent on everything from meat and movie tickets to hotel stays.

There was hardly a discount coupon for sale online in Australia at the start of the year. But now as many as 10 sites have been – or are being – set up to offer this fresh form of marketing.

Here’s how it typically works. The coupon site will approach a business offering to supply a group of new customers.

If the business is interested it will agree to give up some or all profit on the initial sale to the new customers – thereby creating the discount – in the hope of making money by convincing some to become ongoing clients.

The deal is then offered to online subscribers. To motivate subscribers to act now, it’s pitched as being for a limited time only. They are also encouraged to tell mates about the deal through social networks such as Facebook and Twitter.

If the predetermined minimum is not met then no one gets the deal. The coupon site makes its money by charging a fee for each customer delivered.

One of the early leaders, JumpOnIt, has amassed 450,000 followers on Facebook, including 130,000 around Sydney. Other sites include Scoopon, OurDeal, Spreets, Eroo and Ouffer.

All are trying to replicate the success of the US web phenomenon Groupon, which Forbes magazine recently named the fastest-growing internet company ever. Groupon opened in 2008 and revenues are set to pass $500 million this year.

Billy Tucker, the CEO of Cudo, which is owned by PBL Media and due to launch on Wednesday, said: “Our goal in Australia is to be Groupon.”

Sean Cassar, of Castle Cove, has spent nearly $300 through JumpOnIt in the past month, buying movie tickets and meals.

“It makes a real difference to a family,” Mr Cassar said.