Living Social, LivingSocial
Living Social, LivingSocial partnership with Amazon pays off well today. Social life offers users the ability to pay and 10 for a gift card and 20 Amazon. So far, 155,127 people have signed, which is 1.5 million and gross sales for social integration.
There is a chance (and we’re just speculating) that Amazon is subsidizing this operation, do not charge a thing of social life. In this way, social life gets a new sign ups zillion and begins to eat lead Groupon. Why do Amazon? It has invested 175 million last month LivingSocial, and wants to see that the work on investment.
Since VentureBeat first reported that Amazon.com was jumping into the group-buying frenzy with its $175 million investment in LivingSocial, we’ve been wondering how the companies will collaborate. Wonder no more: LivingSocial is offering $20 Amazon.com gift certificates for $10.
On the surface, this deal looks stupid. And stupid popular: More than 430,000 people have signed up for what’s essentially $10 in free money. The economics are even worse than they might seem: If you get three friends to sign up for $10 in free money, you get your $20 gift certificate for free.
LivingSocial, on the other hand, desperately needs to add customers to catch up with Groupon. Typically, LivingSocial and Groupon don’t pay for the inventory they sell. They keep 50 percent or more of the price customers pay, and hand what’s left to the business.
Living Social, LivingSocial
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