A surprise to us, because we thought that given who owns this daily deal site that they would generate enough interest, enough profit to be one of the leading companies in Canada. Nevertheless, we got it confirmed that Offeron, the daily deal site owned by dating site Plenty of Fish, is shutting down by next month. Instead they will be “pivoting” into another business, most likely within the deal space. Deals will be shown on their site until they cease operations by next month.
Offeron is another example of consolidation in the space. Although Offeron decided on its own that the revenues and profits they were making (rather not making) were not enough for them to continue. Instead, after 5 months of investing and trying, they will pull the plug and move on to other business models.
Going forward, look for dozens of daily deal sites to pull the plug, merge or get bought out because they are simply not producing the gains they once thought would materialize from this industry. As many are finding out, this industry is easy to get into, but damn expensive to grow and profit from. Customer acquisition costs are high, merchant acquisition costs are high and operating costs are high. If Plenty of Fish could not leverage the millions of viewers they had on their site into enough success for Offeron, then others who do not have the same visibility will come to the realization that they need to “pivot” as well.
If you are interested in potentially selling your daily deal business or aggregator, then contact us, we have several buyers that may be interested.