In December, Amazon (AMZN) invested $175M in LivingSocial. Like Groupon, LivingSocial capitalizes on local advertising by having deals of the day that offer discounts to people who opt in to certain deals. But today, they are offering a $20 Amazon.com gift card for just $10 (get yours today). Brilliant!
It is rare to see 100% redemption for any offer for these companies, but this is a great way for them to add several hundred thousand to a million+ new names to their database as the word of mouth of this great offer gets out. Dozens of my friends have already promoted it on Twitter, Facebook, etc. And even if 100% redeemed it, there could be some breakage in terms of not all the money being spent and of course Amazon has a profit on those purchases as well. So total cost is less than $10 a customer. Can you come up with some creative way to acquire customers that benefit all three parties involved: benefit You, benefit the customer and benefit the company you are offering something from? Please let us know.