Cleveland, OH 11-15-11 White label Daily Deal software provider Shoutback Concepts LLC continues its pioneering strategy by announcing a new pricing policy that is sure to make waves in the daily deal industry.
Everton Weeks, EVP of Shoutback, believes newspapers are paying too much to their daily deal provider. In fact, he believes that the fees may be as much as 50% too high. His conclusion is based on hundreds of conversations Shoutback has concluded with publishers representing major US publications.
Speaking on the topic of Daily Deal revenue share models, Weeks says a fixed revenue share model pushes more than a “fair share” of the revenue to the platform provider. “Why should a platform provider receive $500 on one deal as a revenue share and $5,000 on the next deal, if in fact the service they provide is exactly the same for both deals?”
According to Weeks, Daily Deal platform providers must find other ways to add value and not simply leverage off the success of the newspaper’s sales team in selling great deals. He proposed a model that is billed based on a flat transaction rate or that in some ways limits the platform provider’s take. “The success models would reward a platform provider a fair fee for their software but then encourages them to find ways to add unique value to the proposition. For example, some of the ways that he says Shoutback Concepts can add value include;
- Sourcing deals for their local newspaper partners.
o Weeks says he can generate quality local deals for markets with a sales team directly talking to local merchants. This approach delivers more sales as compared to obtaining deals via a deal aggregation service. This access has allowed Shoutback to become experts in the deal sourcing arena.
- Opening the local newspaper markets up to benefit from national deals and compete head-to-head with national deal sites in their market.
o “Suddenly the local market has gone global. In order to maximize local Daily Deal revenues, newspapers have to be able to participate in the national deals arena. Now local media partners can compete with the national deal providers such as Groupon and Living Social.
- Review the partner’s business on a regular basis and setting goals that both the newspaper and the platform provider will jointly work on for the next 30 days
o With Shoutback, you don’t wait until you contact us about languishing results. More than a software provider, we have state-of-the-art key performance metric reports and processes that are used to monitor, track and detail the important parameters that drive successful media daily deal outlets. Shoutback media clients routinely outperform the forecast potential for their market area. It’s no accident.
- Providing platform features that support the role and mission of the newspaper in the local market.
o Shoutback’s feature set is based on what media companies and merchants need to be wildly successful. Speed of payment, state-of-the-art voucher redemption, and deal sourcing for local and national deals help round out an unbeatable money-making machine that only Shoutback clients can enjoy.
This pioneering strategy has led many media companies to move from their current Daily Deal platform provider. Led by an experienced Account Manager to ensure a smooth transition, Shoutback has helped many media companies take their static daily deals program and activate the profit potential of their languishing program.
About Shoutback Concepts
As a pioneer delivering a private “white” label solution through media partners, Shoutback Concepts has developed a true end-to-end solution media organizations can use to capture ever increasing digital revenues. Working with nearly 100 of the top media markets in the US and Canada, Shoutback Concepts offers a performance-based solution and customer-centric perspective with client engagements. For more information about Shoutback’s private label solutions and how it can add value to your media company or merchant’s digital media strategy, contact them here. Ask for a digital market assessment. If you’d like more information about this topic, please call Jon Paul, Director of Marketing, at 216-378-1850 x113 or e-mail jpaul@shoutback.com .
