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Is deals short-lived?

Is the “daily deals” phenomenon just a fad- –

“The easiest way to get people to use a service is to save them money.”

But that’s the whole point of a deals service. That desire is not likely to change, is it? People still take loans for buying vanity items, even though they really shouldn’t. People simply want stuff, all the time.

What might be more of a concern:

  • Everyone seems to jump on to this bandwagon, causing dilution of users and merchants per service.
  • Merchants might not see that this creates more business for them, which is the whole point of deals. Deals are ads.

No doubt Groupon and others can’t take 50% of the transaction in the long term. That’s outrageously high. If normal ad brokers take this much I would say the same thing. Luckily for the latter business, this is not at all transparent.