Discount sites like Groupon, Living Social, TeamBuy and SwarmJam are proliferating like crazy these days.  But is it really a win-win-win situation?  The customer wins, the coupon company wins, does the business owner?

Bob Phibbs aka the Retail Doctor offers up an interesting Groupon case study.  Business owners beware…what you are about to read may scare the pants off you!

Can Groupon be a good marketing tactic?  I would say yes, but with extreme caution.  I think the more pressing question is a much deeper one than deciding whether or not to use the “Couponing” marketing tactic.  In my mind, it’s almost a desperate move.  What is the health of your business overall if you need to rely on such a tactic?  If you are experiencing a decline in sales it’s time to do a check up.  A SWOT analysis is the correct prescription to your woes.  Tale the time to assess your internal strengths and weaknesses, and external threats and opportunities.  Before pointing out looking to blame…take a look in the mirror.

As a former restauranteur, I can say that I have used a similar tactic…called the Entertainment Book.  My offer was essentially a 2 for 1 dining offer.  Did it work?  Yes.  Did it cover my costs?  Yes.  Was I as profitable?  Yes, but not as much as I would have liked.  The year that we stopped using Entertainment Book, our sales were the same if not better and my margins improved.

Here are my top things to consider as a business owner before using the “Groupon Tactic”:

• Does your business have a HIGH repeat customer base? Think restaurants, in demand services.
• How does it impact your financial and human resources, can you control the flow of redemption?
• What effect does this have on the positioning of your product or service?  Are you training your customers to discount you?
• Can you get these customers on a list to market to them later?

The bottom line is research and plan your overall Marketing Strategy…before you execute any marketing tactic decide how it fits within your end goal.

Checkout, Phil’s post here:

Groupon Review: Worst Marketing For Your Local Business – Case Study

There was a cool infographic posted at Mashable today.  It offers an interesting look at the evolution of Social Media.  Evolution often makes me think what the landscape will look like in 5 to 10 years – not just in Social Media but in business in general.  In business, in many cases the first one into the market often wins but as you can see in the world of social media the late entrants are the dominant forces. 

There are 2 take–a-ways from this infographic:

1. Being first to market isn’t always the best.  But if you are, you need to strive at being the best that you can be and the best defense is a strong offense.  A strong offense is building the biggest market share you can afford to build.  And once you have market share you need to do your best at protecting it or you succumb to number 2.
2. Even if you are late to the party you can still compete.  After all, the first one to market has done the heavy lifting…they’ve established that there’s a market.  Now all you have to do is provide a better offering…and there are many ways of doing this.  By offering more, or by offering less, by charging more or by charging less, by catering to a different segment of a market…the list is endless.

Remember this, if you are standing still (i.e. doing nothing) you are actually going backwards.

Check out the infographic as seen on Mashable today.  The infographic was created by OnlineSchools.org.

Wealthy People lists, check out any magazine rack and you will see a multitude of magazine covers that feature some sort of list.  The lists that usually grab my eye are the ones that feature either the top corporations or richest people. 

Below you will see the bottom 30 individuals on the 30 under 30 list compiled by Aarron Hatfield over at Income Diary.  I like reading these lists because they give me a sense of inspiration.  And despite what you might think, it’s not in the sense of money either.  Sure, who wouldn’t want to be worth millions and millions of dollars.  For me, the sense of inspiration is about ideas and how they can pay off if you believe in them.

This 30 under 30 list is interesting in that it serves as a great example of how the internet is the land of great opportunity.  These young individuals barely out of high school are creating tremendous value by meeting needs of others…whether it’s a platform to facilitate sharing or a service to deliver convenience or providing valuable information the bottom line is…if there a market for it the end result is sales – whether or not it’s a profitable market is a different story.

So what can you take away from this article?  Check out the profiles on the Wealthy People List.  Think about what they have brought to the table.  Then think about what you can bring to the table in your life.  What do you bring to work, your relationships, family, your kids and yourself?  As the old adage goes: garbage in equals garbage out.  If you focus on giving rather than taking…you will begin to see returns. 

#30 David Karp – Age 24yrs  www.tumblr.com

Worth an estimated $5.5 million

David started the company Tumblr.com in 2007, with the aim to help anyone, share anything online. Sounds a pretty good idea, but who is actually going to use it? Well, 4.2 million of us is the latest estimation, so I think it’s not a bad idea at all. So far he has been handed $5.5 million in venture capital funding (so this personal fortune may now be more or less) and he has helped hundreds and thousands of users to share their content around the globe.

#29 Dylan Smith – Aged 22yrs   www.box.net

Worth an estimated $7 million

Dylan is the second in command at Box.net, and currently resides as the CFO there. Dylan has been the go-to-guy in a number of other various start-ups besides Box.net. Smith is the right-hand man of Aaron and focuses his efforts more towards the sales, management and budget side of the business. Together they have so far managed to raise nearly $15 million in funding for start-up corporations. I can see this pair are going to be hard to miss in the coming few years. Watch out.

#28 Aaron Levie – Age 23  www.box.net

Worth an estimated $7 million

Aaron is the CEO of the website Box.net, for those of you that now of Box.net, here is one of the founders. Starting back in 2005 Aaron aged just 18yrs old created the website as a business project for college. The website came on in leaps and bounds through the college project and it was decided to bring the idea and project into the real world, Box.net was then officially incorporated that same year. The website business managed to gain capital from business “Angel” Mark Cuban, followed by some rather large sums of investment from third parties. The company aimed at helping businesses to share content and information internally and externally through their marketing and communication products and service.

#27 Joshua Dziabiak – Age 23yrs   www.showflix.com

Worth an estimated $9 million

Joshua started his first company, a web based hosting and design site aged just 15yrs, by the time he was 18yrs he had managed to grow the business to such a degree that he sold it for $1 million. Now that’s not bad by anyone’s standards, £1 million by the age of 18yrs from a company he started as a mere boy! Since then Joshua has managed to break through yet again and is now the CEO and co-founder of Showclix.com a ticket sales company that serves over 1,000 customers a year with over 1 million sales so far! It seems Joshua doesn’t know how to fail. 

#26 Sean Whalen – Age 28yrs   www.alterg.com

Worth an estimated $10 million

Sean is a very physical entrepreneur and doesn’t mind getting in there, and really getting his pulse racing. Sean developed the AlterG treadmill, which is essentially a treadmill for use in anti-gravity. Why? Well besides it being a very good idea, it is perfect for those athletes or the elderly who have injured themselves. It allows you to train using only 20 percent of your natural body weight, which allows the user to develop strength much more adequately, safely and without causing any more pain than necessary. Did I mention Sean’s dad was a NASA research scientist? That must be where he got the idea. Brilliant. 

#25 Matt Pauker – Age 24yrs   www.voltage.com

Worth an estimated $12 million

Matt was Rishi Kacker’s (above) business partner and another one of the co-founders of Voltage.com. The business started in 2002 and Matt is still there at the time of writing this. Matt has been involved with the design and architecture of the business and still gets deeply involved in all the processes which come with it. The company is now used by some of the biggest named brands and businesses in the world, and it is still growing. Matt was also named as one of the top 25 young entrepreneurs by Business Week as well as having been featured in numerous other highly respected publications. 

#24 Rishi Kacker – Age 24yrs   www.voltage.com

Worth an estimated $12 million

Rishi is one of the co-founders of Voltage.com, a security based company, the nature of the business is the encryption and protection of online and offline data through the use of electronic devices. In other words they stop people stealing data and identities etc. Currently serving around 1,000 customers at the time of writing the company has gone on to very big things, and although Rishi is still part of Voltage.com it has since changed hands of ownership. Which has allowed Rishi to become very wealthy in the process. 

#23 Eric Koger – Age 26yrs   www.modcloth.com

Worth an estimated $15 million (combined)

Eric was the design expert behind the Modcloth.com website, and also helped with the hosting side of things. Eric is still very much a part of Modcloth.com and helps with the design, working closely with other designers they employ to oversee things are how they want them to be. He also helps with the financial side of the business like budgeting and sales reports. He also takes some of the product photography from time to time. What a great pair they are. 

#22 Susan Gregg-Koger– Age 25yrs   www.modcloth.com

Worth an estimated $15 million (combined)

Susan Gregg-Koger is the CEO and co-founder of Modcloth.com, operating the site via her college dorm-room where she managed to process orders herself whilst keeping up with her academic classes, that’s hard work right there! Her website was designed by her then boyfriend (now her husband – below) and the site went from strength to strength and is going remarkably well even now. The site boasts over 300 designers all creating one-off unique garments for their customers, sounds great.

#21 Aodhan Cullen – Age 27yrs  www.statcounter.com

Worth an estimated $18 million

No he is NOT one of the vampires out of the Twilight series of films, though I bet he was a bit of a night owl whilst starting his business empire. Aodhan Cullen is the CEO of the online company StatCounter. If you don’t already know, StatCounter is a web analysis and statistics company that was founded in 1999 when he was a mere boy aged 16yrs. The website has had huge success and in mid-2008 the members tally had grown to a whopping 2 million (globally). Good stuff Aodhan.

#20 Ryan Allis – Age 25yrs

  www.icontact.com

Worth an estimated $28 million

Ryan is the CEO and co-founder of the company icontact, the nature of the business is not unlike that of mailchimp. They provide marketing tools of the email variety and his efforts to further email marketing sales for himself and his clients has earned him a very nice amount of revenue. Able to boast over 50,000 clients globally, and with a best seller on the bookshelves entitled Zero to Million, Ryan is going places, fast.

For the rest of the Wealthy People List, head on over to Income Diary and see Michael Dunlop’s post titled Young Rich List – 30 Under 30 Internet Millionaires.  Enjoy, I know I did.

And while you are over at Income Diary spend a little time on Michael’s site…I know his core mandate is to offer tons of value and if you’re thinking about setting up a blog this is site to check out.  Michael is another young lad that will make this list one day…I hope to one day chat with him about his success.

What do Don Trahan and CJ Goecks know about Internet Marketing?  Based on the emails I get from these guys…quite a bit.  They have one upped the late night golf infomercial guru AJ Bonar by using the power of internet marketing to autopilot sales.  If you follow a couple of tips that I am about to identify you too could be cashing in on autopilot income.

Who are these guys?

Don Trahan – Peak Performance Golf Swing

PGA Master Professional Don Trahan, known as the “Swing Surgeon,” has been ranked by Golf Magazine as one of the “50 Best Teachers” in America. He is the author of the popular instruction book, “Golf, Plain and Simple,” the “Peak Performance Golf Swing” and numerous articles about the golf swing in major golf publications. He is a former teaching editor for Golf Magazine and creator of numerous training aids.

However, for Don, his greatest distinctions by far is the “student” who is now a member of the PGA Tour. DJ Trahan and Don’s son, winner of two Tour events, is positioned to be one of the Tour leaders.

CJ Goecks – Perfect Connection Golf Swing

Goeck is a Certified PGA Golf Professional and is also ranked as a Golf Digest Top 20 Golf Instructor.  PGA Touring Professional Nathan Green won the RBC Canadian Open using Goecks’ Perfect Connection Golf Swing.

So what are these guys selling?  Most people would probably answer golf lessons…but that’s the easy answer.  You would be surprised at how many people get this fundamental question incorrect.  Ask a Dentist, Chiropractor, Real Estate Agent, Pizza Store, Car Dealer what they sell and the majority of them will say clean teeth, skeletal adjustments, houses, pizza and cars – ALL WRONG! What they are missing is a VALUE PROPOSITION…what are their customers buying from them?

In our golf pro examples, we see that the Peak Performance Golf Swing is promoting the end to inconsistent golf – a common problem among many golfers.  The Perfect Connection Golf Swing is promoting a pain-free body friendly golf swing – which for many golfers pain can create all kinds of problems in the quest for a consistent golf swing.  Are you noticing a trend here…they are providing a solution to a problem.  You see…most people buy to satisfy something.  It could be vanity, security, pain relief, worry, pleasure, convenience etc.  In our mini case study, both Pros are promoting a better golf swing but they are each catering to a specific niche of people looking to improve their golf swing.

How are these guys using the power of the internet to achieve their sales? LEVERAGE

They are using the power of leverage to earn greater sales.  HOW?

• They created a video series and DVD instructional series which allows them to teach more students than humanly possible using the traditional approach,
• They use an email auto-responder series to deliver engaging video content to help foster a trusting relationship by delivering value up front with their prospects,
• They use the power of Social Media like Facebook and Twitter to extend their reach, build credibility and increase traffic,
• They use the power of PPC advertising to generate maximum ROI on their advertising dollars,

Are they making money?  While I do not have direct access to their bank accounts I would say – there is a very strong chance that they are both doing very well with their sales.  Using some basic research tools such as Alexa.com and iSpionage.com you can see that both sites get a steady stream of traffic .  I did a recent search at iSpionage (a site that tracks PPC campaigns) for PerfectConnectionGolfSwing (PCGS).  It revealed that in the month of October PCGS spent roughly $377-$603 on pay-per-click advertising.  As a result, they received 402-487 click throughs to their site.  Assuming a 5% close rate and using the lowest click-through number of 402 – sales could be estimated at $67 x 20.1 = $1347.  Subtracting the PPC cost of $603 results in a profit of $743.  Having said this, there’s still the cost of producing the DVDs and the actual video production costs to consider – but I’m willing to bet that they’ve made enough sales to cover those costs.

The point is, with all the up front cost and efforts already invested both of these guys will be able to reap ongoing returns on their initial investment of time and money for years to come.

So what are you waiting for?  Who’s problem can you solve today?

The Google machine gets more innovative with the introduction of Google Product Listing Ads.  For the time being the new option will only be available in the United States.  This new format has been in testing for the past year and makes AdWords a basic and easy format for promoters to attract more potential customers. 

According to Google’s Official Blog on AdWords, during beta testing of hundreds of millions of ads, split tests revealed people are twice as likely to click on a Product Listing Ad vs. a click to a standard text ad in the same location. 

The hope is that with AdWords Product Ads users can see your exact product offering before reaching your site…leading to more clicks, better lead quality and increased ROI on your Pay-Per-Click Campaigns.  For a bit more detail, check out Google’s Video below.