What is Social Commerce
Social Commerce means collective buying or group buying. It involves interacting with consumers through social media to attract the right customers to the right products and services to purchase at a discounted price. Interacting with the consumer creates measurable value to business owners that develop deals based on consumer interests. The goal is to fulfill the interests of consumers by creating repeated visits to brick and mortar business by slashing prices in half on sales items. Consumers receive notice of daily deals via personal emails where they can take advantage of deals of their choice.
Group Buying Sites
Groupon and Living Social are two daily deals sites that set the standard for social commerce. Groupon is the father of social commerce. In the summer of 2010, Groupon gained much attention when it went national and secured a Gap promotion which advertised $50 in merchandise for $25. Within a few hours sales soared and Gap made $11 million dollars in one day. This transaction attracted the attention of Google who proposed a buyout for Groupon at $5 billion dollars. Groupon did not accept the offer and three months later was valued at $25 billion dollars and growing. Consumer buying on sites like Groupon are positioned to rise to $3.9 billion by 2015. Sites like Groupon and LivingSocial generate $1 million dollars a day in revenue. In a report by TechCrunch, daily deals sites are expected to grow 138% this year and are projected to bring in revenues of $2.7 billion dollars. Wow, wouldn’t it be great to capitalize from group buying.
Network Marketing and Social Commerce
Some network marketing companies like InVado and The Customer Advantage have capitalized on group buying by incorporating daily deals services for representatives to promote. These companies have positioned themselves as the second generation of group buying sites which will soar to $3.9 billion dollars by 2015. Smart network marketing companies are researching first generation companies like Groupon and Living Social to understand what it means to be on the front end of a business opportunity that is set to change their financial future. The results, people from all walks of life can capitalize from daily deal sites and make a substantial income. Would you want to take advantage of a business that is documented as making over $1 million dollars a day? Wow, I don’t know about you but I would want to have a piece of that pie.