use groupon to build your agency

How To Use Groupon To Build Your Agency

Out Of The Algorithm Into the Black

So yesterday, I wrote a post outlining a bit of the vast money-making oppotunity that has opened up within Instagram.

There are a few things I would like you to remember, though. First, looking at Instagram and all of the features that we can offer certainly doesn’t mean you should forget about Facebook and the extra features only you can provide on Facebook and Instagram.

I like to get these thoughts down because I want you to realize that with very little training, you can become a massive name in automation.

And when you think about it, there isn’t a single business, physical or digital, that couldn’t help but make more if they had a chatbot installed.

But I am not going to sugarcoat it; many people are scared of chatbots. As soon as you say the name, chatbot, or messenger marketing, you might as well have given up trying to sell your services.

Let’s look at an example, and hopefully, you will see what I mean now. If my car breaks down, I take it to the garage. Now the only thing that I want the mechanic to say is yep. I can fix it and have it running.

To be honest, nine times out of ten I am not that interested in the price because I need my car.

Now, if I head to the same garage and he tells me my cylinder head gasket has gone, and he’s, going to need a torque wrench that will need to go to 18 in pressure, you guessed it, my eyes have glazed over, and I’m looking for another garage who tell me they can fix it.

That’s it, that’s all I want now. Think about your business owner. I don’t want to know that you will be using chatbots; I want to know that you will make me more money. I want to know that you will solve my pain points.

So with this in mind, let’s say we are going after a restaurant, and we want to increase their profits, build their list and track the sales that have come from us.

A common problem with restaurants is that it is complicated for them to track the return on investment, and a whole host of these restaurants found themselves heading over to Groupon and similar sites. Which in some ways is good for them as they can track their sales, and if we look through Groupon a little, there is a lot to learn about how we can sell to these people.

The Groupon Business Model

Okay, so a few years ago, I was on Groupon myself, with one of my businesses, and many negatives were going on there.

1 Groupon insists that the business offers a 50% discount, now if you are a large business, then perhaps you can get away without having to agree with the full 50%, but for your average company, then that is what you decide to.

So the business has lost 50% of their profit straight away, so they have something on for $60 they are only charging $30 for it (as a general rule)

2 Groupon as a company then takes another 50% from that sale price. This means that the business is now getting $15 for their food, priced at $60.

3 Groupon then holds on to the business’s money for 90 days on average. This means that not only has this restaurant, in effect, cost themselves $45 per customer who has eaten, but they also can’t get their hands on the money to restock, so they better have deep pockets.

Now comes the real kicker, Groupon does not share contact details, so these people are constantly looking for the cheapest deal, and the restaurant will never see them again. The restaurant has no way of contacting these diners, and to be very honest, there isn’t any of that crowd who would pay the total price.

Thinking of the psychology around it, why would they, in fact, why would anybody go to that restaurant and pay double what somebody else has paid. So that $30 price range has now been set in their minds.

So How Does Groupon Sell This

Here comes the genius with Groupon. Firstly they use cold calling. Next, they look for restaurants, in this case, that are near to another restaurant that is offering a discount.

If there is one thing a business owner hates, it’s thinking that one of their competitors is doing better than them. 

Groupon uses this as a pain point; people will be happy to pay for something that avoids pain. If you know a pain point when selling your services, you are quite a few steps ahead.

They also don’t go into very many details on their cold call; this is a masterstroke as would you sign up with a company that, in effect, is taking away 75% of your money? I’m guessing not.

Groupon makes sure that they will come out to see you. Now, this isn’t needed, as this could be just as easy if done over a zoom call, but it’s a great touch people buy from people.  

And still, even during this meeting, you are shown the contract and told about the advantages that marketing with Groupon could bring you.

Groupons’ most significant selling point is that they have the traffic, which is essential marketing. If you have eyeballs on your offer, then you are going to win every time.

How You Can Learn From Groupon

So far, I have painted a horror story of Groupon, which is partly intentional. 

You see, if a business like Groupon, or any of the others can be turned into a multi-million dollar business, how difficult do you think it would be for somebody to come in and do a better job.

Pretty damn easy!

The Exception To The Rule

So getting eyeballs on your offer is the main thing. In any business, we all know that, usually, this is the number one problem that you will face as a marketer.

There is, however, one massive exception to the rule, businesses with large Instagram followings, in effect, these businesses have the opposite problem, so let’s tackle that first.

Presently the Instagram algorithm is showing a post made on Instagram to around 6% of subscribers.

That means people who have told Instagram that they want to see that business posts aren’t being shown to them.

Now because my maths is terrible, we will imagine that the company you are going after has 100,000 followers.

Using the 6% breakdown that Instagram shows mean 6,000 people will see the business’s post.

We know that a chatbot gets around an 80% open rate. Still, as it is new to Instagram, we are going to say around 60% so that we aren’t highballing here, so if we have also built their list up to 100,000 followers and we send out a chatbot broadcast, there is going to be around 60,000 people who see that post.

With SMS, we are looking at around a 95% open rate, so we are looking at 95,000 people seeing the post that the business added.

So yes, right now you are thinking, yes, but there aren’t many restaurants around with 100,000 followers, and that’s right, what I am trying to stress is that this will work for any business.

Getting Traffic

Okay, so we have been through the exception to the rule. So let us go through the problem you will typically face, getting people to look at your offer.

Now for this, you may want to run some Facebook ads, and there are so many ways of doing it all that it really can make your mind bogle. 

But let’s do a basic overview as we don’t want to get in too deep. We want to keep ad costs low and return on investment as high as possible. Now, if we are charging a monthly retainer, then ads could be something that we are offering.

We want to do ‘offer stack’ and to do this. We can use our chatbot to its strengths.

So let’s say we are going to run three offers. We already know that is a restaurant is with Groupon, that they will offer 50% off so we know that we can get a great offer from them ready to get clients in.

So let look at our first-month offer, firstly we are going to make it pretty local, mainly if the restaurant is in a good location, and then we want to use the most powerful word. FREE.

So we can do a buy one Burger get one FREE.

Win a year’s worth of FREE french fries.

Free bottle of wine with your meal.

You get the idea, now each of these can be run for an entire month, and when somebody signs up for the promotion, they will get a voucher inside of their chatbot, which will be linked to google sheets. 

The user input can then be used by the customer when they are inside the restaurant, with the amount they have paid going directly to google sheets. Meaning your restaurant clients can see exactly who has been in and taken the offer.

So let’s imagine 1,000 people signed up for the first offer. In the first month, this means that, in effect, we will block them from month two promo and month three promo, so the whole time you are running ads, these customers are snowballing and making you a lot more attractive to your clients.

We will go in deeper on how to run those ads, etc., in the future, but for now, we are concentrating on getting as many eyes on our restaurant as possible.

Next, we will target birthdays through Facebook ads and offer the person celebrating a free meal. It’s not often somebody going out for their birthday will be by themselves.

Inside the restaurant, we can also have QR codes to enter a FREE competition on winning, maybe a meal for two, another QR code outside, with the same thing. 

All of the time, we build our client base for that restaurant and create their lists. We could even offer meal orders when these people pass on their way home for work or almost everything. 

And best of all, you’re tracking every single lead by using custom inputs. Not only are you monitoring inputs, but you also know who is spending the most from your promotions. If somebody is coming in, getting their free stuff, and leaving, they can be taken from the list.

That means not only does your restaurant now has a complete set of lists that they can contact anytime, with any offers or on a quiet night, but you are also filling up their restaurant on autopilot.


You will mostly find restaurants’ pain-point can be quite simply overcome if you pay attention. However, some of the common pain points are.

Retaining Staff

People who work in restaurants are pretty much working there for the money, and increased turnover means that tips are also going to improve.

Operating Costs

Opening a restaurant, the costs are enormous. By being able to bring them in a better return on investment, you are helping them cover it.

Attracting And Keeping Customers

If they already have the right place and their food is good, you are over halfway there. Then, all you need to do is introduce the restaurant and its customers.

Tracking Return On Investment

This is huge and is the only advantage that Groupon offers. After all, an ad on the radio might bring them more clients, but how many more, how much did each cost.

But of course, these are just a few samples of the more common problems. There are many more that you can find on your discovery call.

How To Find Restaurant Clients For Your Agency

Again we will be going into this a lot deeper, but let’s have an overview. Now everybody has heard of cold calling, cold entry, and everything else cold.

And I know it can seem a little soul-destroying, so let’s go into a few methods that will take the sting out a little bit.

So the first problem with a cold email is they don’t open them up, so I use This puts a video at the very top of a complete proposal, meaning that they see their website in the background as soon as you send a message.

How likely do you think a business owner is to open a Facebook message if they see their website. Maybe you don’t like sending Facebook or Instagram messages, that’s okay, send out an email, but the only thing you want on the subject line is something to get them to look inside the email, which will have the link to their personalized video.

But it’s getting them onto a zoom call which can make or break, and for this, keep it simple, remember 2,000 words ago when I said about the garage.

I don’t sell chatbots. Instead, I am a restaurant automation specialist, and I increase the restaurant’s profits.

Don’t be purposefully vague, but don’t start to share every little minor detail. They don’t care how you will make money for their business as long as you do make money.

So when you first reach out or speak to them, they don’t know you at all. So why should they trust you?

If this is one of your first few clients, don’t be afraid to offer them one month free. After that, they can see the value you bring to the table and build the trust every business needs to have.

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