Group buying service LivingSocial is offering a national agreement on a Amazon gift card. The agreement provides a 20 card Amazon gift for 10. What makes this deal even better is that you can use any “agreement dollars ” in your account for purchase. Most buyers (including myself) has acquired the business for $5 instead of $10.
So far, 155,127 people have registered, which is 1.5 million in gross sales for the social life. The agreement is only the beginning, however. There are more than 23 hours to go in the day. We could easily see the number of people who buy this quad agreement or more before all is said and done, what this deal could generate more than 6 million in sales.
This deal is much more than income, however. These are new customers for LivingSocial. There is a possibility (and we’re just speculating) that Amazon is subsidizing this agreement, no social life to collect something. Thus social life go up a zillion new sign and begins to eat instead of Groupon. You can ignore the agreement, but it could be worse than thinking Groupon will have no real competition.