Sunday, 22 January 2012

'Loyalty' incentives! - On a Business Note

It's hard being a little fish in a big pond.  You can have the best idea in the world but if you don't have the same resources available to you as the big fish it can make things a lot harder but in the same breathe a lot more interesting!!

I learned this week how the big fish in my industry are tying companies into 'paperless contracts'  by offering low commissions if they stick with them for a year but whack it up to a ridiculous commission if they choose to advertise elsewhere during that period.  Making it next to impossible to persuade a lot of companies to even contemplate trying a new type of deal site like ours.

We have had a couple of companies I am pleased to say coming to us once their 'contract's' are finished simply stating they don't like being tied up in this way.

We do things quite differently here at KidzGrab and charge one commission, very rarely does it change.  I am certainly not going to start tying people into contracts although technically they are not contracts but agreements!  I think businesses should be free to advertise their business where they want to and when they want to without penalties being inflicted on them.

The only thing we ask (not demand) here at KidzGrab is merchants don't do a deal similar or the same three weeks each side of their deal with us. 

The daily deal site business is definitely harder than I imagined but it's also very exciting and challenging. 

This year so far has been very slow for us but with some really exciting new merchants in the pipeline it is shaping up for an extraordinary year!

One of my greatest challenges is getting out there and putting us in front of every parent in New Zealand.  Unlike the big fish our advertising budget is small which means we are very limited in the ways we can get our business out there to our audience.  Another reason why our social networking is so important to us and word of mouth (so if you see another parent today don't forget to tell them about us!!)

With a focused mind, boat loads of enthusiasm and a big smile on my face we will get out there and be the premier Daily Deal site for families in New Zealand!

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