rogerd - 11:45 am on Jun 6, 2011 (gmt 0)
IanKelley, I think margin erosion is already starting. I spoke to a local photographer who said at least one similar daily deal outfit was offering to take only a 40% cut. As the daily deal offerings proliferate, it seems very likely that offering a better deal to businesses will be a key competitive strategy.
And, even if a competitor has a smaller membership than Groupon or Living Social, most local businesses don't need to maximize the number of deals they do. They just need to hit some reasonable target that will give them exposure but not overload their operation or bankrupt them.