Domain Manage

Discount Voucher Code Sites - Make any money?

Discussion in 'Business Discussions' started by Alien, Nov 20, 2010.

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  1. Alien

    Alien Well-Known Member

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    Hi all,

    It seems to be pretty simple to create a discount voucher code site thesedays - get a domain name, get the traffic to it (hopefully!), populate using an affiliate ID and voucher supplier, etc, etc.

    But, as there's loads of them around now, is it worth it - do they make any money/good returns in people's experiences? :)
     
  2. Domain Forum

    Acorn Domains Elite Member

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  3. mat United Kingdom

    mat Well-Known Member

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    Like most saturated type sites you have to stand apart.

    Social networking, competitions, great "come back" content.

    There are to many voucher code sites to just rely on serps and longtail traffic.

    I dont run one, but it seems the big players are picking up a loyal fan base through some of the above methods.
     
  4. Frog

    Frog Active Member

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    Myvouchercodes makes 7 figures a month. Vouchercodes.co.uk makes a couple of hundred grand a month (estimate). discountvouchers.co.uk sends £1.75m a month makes £100k a month (estimate), promotionalcodes.org.uk and vouchercodes.com are doing pretty well - so yes there is plenty of money to be made in voucher codes.

    But with that said, you're over simplifying things. Every single niche ultimately boils down to buying a domain then getting traffic to it. If you think you can do that, then sure go ahead. There are loads of voucher sites around, but if you can force your way in to the search results you can eat someone elses lunch. If you want to try, and have the cash, you can buy this to start :)

    I 100% disagree with this comment. If you can rank it, you can do extremely well in any busy niche (not just vouchercodes) by simply outranking everyone else, without providing a single unique feature.
     
  5. dougs United Kingdom

    dougs Well-Known Member Exclusive Member

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    I'll tell you the numbers

    As we run www.discountvouchers.co.uk I can tell you the numbers:)

    Sales numbers are huge
    Commisions are rubbish
    Competition is huge

    Simple problem is unless you have decent money to throw at it you will get swamped and waste your time.

    MyVoucherCodes
    50-100 staff
    Traffic 100-200K per day mostly from organic
    Revenue about £1 million per month
    Profit £4 million in 2009 accounts

    Vouchercodes.co.uk estimates
    20-30 staff
    Traffic 100K per day -20K from organic, rest from ppc and/or email
    Revenue about £300K pcm
    Profit......no idea but minimal depending on growth plans
    Spend so far about £3 million

    DiscountVouchers.co.uk
    15-20 staff
    Traffic 30-100K per day from organic, ppc and email
    Revenues £100-300K pcm
    Profit - none, actually so far huge losses
    Spend so far about £2 million and plans to increase this massively:)

    There really are no other players in the space that are growing. The next 3 players are all loosing market share and are not geared to grow.

    The target of the top 3 is Groupon:)

    My advice is find a niche where you make more per visitor.

    Doug

    Doug
     
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  6. Frog

    Frog Active Member

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    What are you basing that estimate on? Vc.co.uk are ranking 2nd for a massive amount of search terms, I would expect their organic traffic to be significantly higher than 20% of their total
     
  7. retired_member33

    retired_member33 Retired Member

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    Ur sure about those numbers? They seem to be a bit optimistic...
     
  8. Retired_member41

    Retired_member41 Retired Member

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    Didnt you read, its his site lol

    So numbers will probably be almost spot on.

    I've only recently started looking at webalizer statistics for a few web sites, and they seem to get a few voucher search requests, even though they are unrelated, must be a search engine glitch, so imagine the amount of people looking for them.

    I now do a quick google search everytime I see a voucher space when checking out, if you dont look you feel robbed.
     
  9. accelerator United Kingdom

    accelerator Well-Known Member

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    For the one man operation then I agree.

    The question I find interesting though is from a profitability and lifestyle standpoint, is it ever really worth a one man operation expanding to an office plus lots of staff?

    Rgds
     
  10. retired_member33

    retired_member33 Retired Member

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    @Caz

    Well aware that its his site, just think the numbers are crap
     
  11. Frog

    Frog Active Member

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    Either some of the estimate numbers are wrong, or Mark Pearson is lying. Surely he wouldn't do that though :p

    He says he gets 11m uniques a month so that would be 350k uniques per day, not 100-200.

    Its immediately obvious dougs estimates are wrong, if MVC are doing 100-200k visits a day, then vc.co.uk can't also be doing 100.

    The "nobody else growing" point is debatable ;) We've grown from nothing to where we are now in only 6 months. I'm looking at the commissions now and since 100% of them came from organic search results, we're certainly eating into someones market share.

    There are loads of holes in those numbers.
     
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