Starting a coupon business can be fun, exciting and a brand new challenge. The opportunity can also be lucrative and can be started from the comfort of your own home. There are hundreds of people who have been able to utilize this business model in order to create an additional stream of income. Some of these people have also been able to expand their business into a full-time opportunity, generating large sums of profit for them each and every month. Most interestingly, the business does not require a big amount as start-up cost.
If you are willing to accept the challenge, you will help the customers to find exciting offers and also assist the businesses getting new customers. People are always in search of products and services coming with offers and discounts. Naturally coupons will serve their purpose. Due to the increasing popularity of this business venture, I thought it is time to take a look at how to start one of your own.
Step 1: Decide on a Business Model
The first step to starting your own coupon business is to decide on a business model. There are mainly two main types of business models when it comes to this type of business. Your decision will affect the next steps, so it is important to take some time to consider the pros and cons of each model. The two main types you can choose from include:
- Free coupon books, sell ad space
- Paid coupon books, free ad space
In the first model, you will sell ad space in your coupon book to local businesses and freely distribute the coupon books throughout your local area. The second model of this business will entail free ad space, but will require clients to purchase the coupon books from you. Many startups find that the first model works better due to the fact that businesses will be more willing to pay for ad space than consumers will be to pay for a coupon book. You should note that there is a wide market for coupons as this is something used in many households throughout the world, especially in the United States.
Step 2: Getting Prepared
Now that you have decided what type of coupon business you would like to start, it is time to swift our focus to the initial preparation steps that will help you launch a successful business. During this phase of the process, you will need to get everything in order and get ready to launch your business. Start with branding for your business and get a graphic designer to design your coupon book. You should also have your graphic designer create a variety of coupon designs so you can offer companies templates to work from. A great design will definitely be a complement to your business.Research also provides evidence that colored coupon book printed on fine paper has the best performance when it comes to distribution.
You need to find a reliable, yet affordable printing company that can print your coupon books for you. Establish a connection between your business and the printing company. Mention that you are seeking a long-term business relationship. This often leads to a discount, especially when printing in bulk.
You might also have to register your business. You need to contact your local authorities to inquire about business registrations and to find out whether or not your business needs to be legally registered. Many states and countries only require business registration when the business makes a certain amount of profit, while others may require business registration regardless of the income.
Finally, prepare a formal agreement that can be used in contracts with the companies that buys ad space from you. If you are offering free ad space, it might still be a good idea to set up a basic contract in order to provide a clear overview of what you are offering. In the contract, you should mention the time-span of the contract, all costs involved and any legal concerns.
Step 3: Launch Time
It is now time to launch your coupon business. Before you start distributing your coupon books – remember that you cannot send out books filled with empty pages. This will be of absolute no use to consumers!
Since you have your business ready, you will need to find a few companies who are interested to place advertisements through your coupon book. Contact local businesses and advise them on your brand new business. Tell them about the advantages you can offer them and how a coupon strategy can drive more clients to their business. You can also create a website and offer the coupons on the website, adding more value to the companies promoting coupons with your business.
If you are selling the coupon books, then you will need to start with some “cold calling” techniques in order to gain customers. You can also get a few agents to do door-to-door promotion. Offer customers a loyalty program – if they refer someone to your business, they get a free one-month subscription or their next coupon book is free. The more enticing the offer, the more willing the customer will be to refer their contacts to you.
A coupon business is lucrative, does not require a large initial investment and can provide a stable income. The business venture is relatively easy to start and doesn’t require a lot of knowledge or advanced skills. By following the above 3-step system, you can start your own coupon business in a short amount of time and gain your first clients within a week.