Archive for the 'Business Social' Category



Dealspl.us — social bargain hunting that works

This post continues my weekly series of website reviews. Next candidate probably gets disproportional amount of attention from my blog. In fact the very first post on ProBargainHunter was about this website.

Dealspl.us launched in July of 2006 and quickly became a popular destination for bargain hunters after showing up on the Digg front page. To further stimulate participation the owners ran a series of contests where you could win an iPod or a USB Flash Drive for submitting deals. In fact your humble servant got one of these drives as well after playing with deals submission for a while.

The website launched with the premise that the content is community driven — anyone can submit shopping deals to be featured on the website. As I mentioned before, communities like these need a critical user mass to survive, and Dealspl.us is one of the few who are close to the point to become self supported (a couple of other sites worth mentioning are Dealigg and Modoshi).

Dealsplus Thumbnail

The website has a very clean layout. The front page displays most popular deals in a grid fashion. You can navigate through the categories using the menu to the right. This is all Dealspl.us had when they just launched. The team gradually added features turning the website into a true social network. If you take a closer look at Dealspl.us now you will notice that being a registered user now means you can do a number of other things in addition to submitting or voting for deals.

You can participate in discussion groups, you can invite friends / relatives and identify them as such in your profile, you can browse the B&M store Sunday ads in the circular section. When Black Friday shopping season was in full swing Dealspl.us offered one of the most comprehensive Black Friday ads references, which brought even more attention to the site (see that second spike on the chart below).

Dealsplus Alexa

The team has re-launched daily contests — a sure sign they are serious about gaining the momentum. The site has been holding position #16 in my popular bargain sites list pretty steadily however if you recount the traffic generated by these websites in proportion to the actual user shopping activity, they might as well be in the top 10. This is due to the fact that other sites in the list have some sort of side business which brings them most of the visitors, a good example is ResellerRatings who I reviewed last week.

Dealspl.us success is partially due to the fact that it is backed by the experience of Ben Chui, the owner of BensBargains, who co-founded Dealspl.us with one of his friends. Here is how he describes in his November interview what kick-started the idea:

I was approached by my former graduate student instructor about starting a new Web 2.0 AJAX site. He was entirely new to affiliate marketing and such, so I offered to help him break into the market. He’s a brilliant guy and he was able to get dealspl.us together in about two months! BensBargians.net is more of an editorial type site, which definitely has its place in the scheme of things; but with the hotness of Web 2.0 and user driven content, we felt like we had a winning idea with dealspl.us. So far, our projections have been spot on!

What can I say… well done, Ben. Give it some time and the child will overgrow its parent. ;-)

Save on college textbooks with Chegg

Comparing book prices may sound like a good idea to save a few dollars on that bestseller you want to have on your shelf. But it may not be enough for the college students who struggle each semester to come up with a few hundred dollars for a new set of textbooks that University professors require to take their courses.

Students don’t have the money to buy textbooks, to attend the courses, to get a degree, to find a job, to earn the money as the result. Sounds like a chicken and egg problem, isn’t it? That is what Chegg is all about and that is where the name came from.

According to 2005 Government Accountability Office report textbook prices almost tripled between 1986 and the end of 2004 — rising by 186%. On the other hand teenagers and college students are probably the most active age group on the internet who are not afraid to try new things and experiment with new online services.

Chegg is the biggest of a several websites who try to monetize on this combination. The idea is very simple: build a community where college students can freely buy/sell used textbooks from each other and then use that community to make money by selling new textbooks and other merchandise. Here is how the marketplace works according to Chegg itself:

Chegg

The diagram for non-students is slightly different and involves a small fee — one more way for Chegg to monetize the website which in turn has gained so much momentum that Chegg is receiving another round of funding ($2.2 million) from Gabriel Venture Partners and angel investor Mike Maples.

But the team didn’t stop at the local market of University campuses. They went further and have made it easy for the students to publish their books for sale at Facebook — the biggest high school and college oriented social network. Isn’t it smart?!

What can I say — where was I when it all started in 2001 at Iowa State by one of the university students? Wherever I was — it was the wrong place to be. ;-)

Source: Web Sites Challenge the Textbook Goliaths at BusinessWeek

Why Modoshi will beat DealsPlus

Over the past 2 years I have seen many social bargain hunting sites launch. Most of them had very distinct features and quality design. Yet their flawed marketing strategy made their life very short. If I were to list a few you would most likely have to admit that you never heard the names.

The new kids on the block have been more fortunate in the sense that they started when Digg was already popular and many Internet users have adopted the idea so well that they were not shy digging things anymore. However if you look closely at these websites you will notice that they all suffer from the same problem: they have not built an active community — a community of users who would find and digg up the deals — the kind of community that only FatWallet and SlickDeals currently have.

This is not surprising at all. Bargain hunting is a very narrow niche. It took Digg over a year to become as popular as it is. It will take even longer for these sites if they follow the Digg model.

Social bargain hunting is plagued

We all know that Digg is not community driven in the sense that less than 1% of users control most of the front page news. This is partially due to the algorithms Digg has put in place to favor the top submitters but mostly due to the fact that only a small percentage of users is capable of devoting themselves to the long hours of sifting through the news looking for that Digg-worthy scandal story.

It is obvious that all of the bargain hunting sites currently don’t have even a fraction of the half a million Digg users. I will bet my car that the owners of these sites keep them on life support by searching and submitting deals daily and maybe even by manipulating the ratings to bring the most promising offers to the top for better visibility (for that same reason these websites usually don’t show who voted for the deals. Some don’t even show who submits the deals, at least not on the front page).

The conclusion — social element is there mostly to satisfy your feeling of freedom, to feed your desire to be in control, to create an illusion that you can make a difference. At this time the social part doesn’t do a good job of building a supply of fresh quality submissions for these websites.

How can this be fixed? What can be changed to make the system work? What will compensate for the lack of active users?

It sounds like Modoshi has the solution.

Who are the folks that submit news to Digg? They are mostly teens — school children and college students. They have a very strong feeling of community, they have the time and curiosity to try new things, they are willing to do it for free or for a very small pay. Modoshi is a community where users who submit or pick the best deals are financially compensated. Right now each user only has one shot a day at winning the two daily prizes — $5 for submitting a new deal and $5 for digging an existing one — however as the site growth the prizes will grow as well, according to Modoshi co-founder Vaishali Anga. $10 a day doesn’t sound a lot at all however keep in mind that Netscape was able to sway the top Digg users with a mere $1000 a month — and working for Netscape sounds like a full time job to me.

Modoshi Contest

This is not all however. With each new deal the submitter has to verify 3 existing deals for accuracy. This just sounds like a terrific idea! Once the bugs are worked out the only thing that Vaishali will have to worry about is that his servers are capable to support the crowds of teens who will flock to play the game and earn that penny towards next Wii. By the way, about Wii, the top Modoshi user in January will get one for free — it is another contest the team is running and the prize selection only proves my guess at what the target age is. Seriously though enforcing verification should hugely improve the overall deals quality and as the result will make the site more attractive to those who come to use those deals.

Different game requires different rules

According to Vaishali when Modoshi launched in November it “started on the premise that it was high time contributors to the Internet community in general (who) got a share of the revenue”. The team quickly abandoned the concept though. “Pricier items such as TV etc got unfair advantage. Deal (submission) was based primarily on commissions, not quality”. The contests in contrast provide “a uniform model irrespective of what deal is posted, be it a $10 toy or $1000 hdtv”. Makes a lot of sense to me!

Now what about that rank that social sites display next to each entry? It usually more or less reflects the number of votes the entry accumulated. It makes perfect sense in the Digg case — how else can you judge the value of a news story? It sounds like for shopping deals you could use more data to calculate that number. The item price (compared to the average price for similar items), the item popularity (number of clicks or sales it produces), the submitter credibility — all of these can be factored in to compute the deal rank. Isn’t it brilliant? I wonder why no one else has done it before?

Conclusion

I have been playing with Modoshi over the past month or so and the more I play the stronger the feeling is that they have implemented the best marketing strategy to make a social bargain hunting site a success. I am not saying they are already the best — the site navigation and functionality could be improved quite a bit — but they currently have the best bets at coming out the leader. Sorry DealsPlus, you are not my favorite any more. ;-)

Social Bargain Hunting Roundup

This year has been revolutionary for the Internet. It’s growing popularity has given birth to a new trend - “social”. What started as IRC and bulletin boards has now been adopted by all online services. User contributed content is the king this year and according to this Times magazine article its impact will only grow in the years to come.

In addition online shopping has experienced very nice growth this year. Online spending during this holiday season are 25% up according to comScore. The growth has created an opportunity for new players to join the game thus growing the already long list of participants. Many of them are adopting social features.

Let’s go over some newcomers featuring social attributes and check what they are really worth. I used several factors for selection, among them are usability, functionality, innovation and design. Popularity often influences usability with social websites therefore let’s look at it first.

Comparing Traffic

Alexa Charts

The only thing that is clear from this Alexa chart that Dealspl.us is leading the pack while Modoshi is far behind. The rest three websites are somewhere in between.

In an attempt to measure how many deals these websites have I did a search for “iPod” on each of them and counted number of entries posted within the last 30 days. Besides I attempted to measure how fresh the data is by looking up the latest deal. Here is what I found as of 12/25/07 4:30 am (no, Santa has not stopped by yet :-)):

Dealspl.us Dealigg Deals.com Dealplumber Modoshi
Search for “iPod” 137 105 10 12 100
Latest posted deal 10 hours 4 minutes 2 days 3 days 8 hours

Be aware that some of the deals may be submitted by the people running the websites and hence these counts cannot be used to judge how popular the websites are. Nevertheless the numbers give an idea what to expect.

Dealspl.us

Dealspl.usThe side-project of its parent website bensbargains Dealspl.us may soon overgrow its dad. Dealspl.us had a privilege to come to the market among the first (if you don’t count the early experiments like dealcritic) and managed to do a lot of things right. Ben’s 6 years of pro-bargain hunting have helped to avoid mishaps. The content, while user submitted, is constantly moderated and refined. I am sure Ben feeds a few of his own deals every day to keep the things running smoothly.

The simple and nice looking design along with pre-filled quality deals content is what made the website a success initially. The team kept adding functionality and now I cannot really find anything that I wanted from a bargain hunting site that Dealspl.us didn’t have. Maybe just some minor things like email newsletter, hot deals widget, and a submitter web browser plugin? (Ben, it is a hint ;-) )

Dealigg

DealiggFrom the first glance Dealigg looks like a “not very polished” Dealspl.us copycat. Nevertheless it doesn’t prevent it from bringing in nice user traffic. Overall it is very much one step behind compared to the original. The coupons section, the friends feature, and the talk groups are just a few things that Dealigg lacks compared to Dealpl.us. Read my earlier Dealigg review to get a better picture.

Deals.com

Deals.comThe creators of Deals.com have put aside sufficient funding for the domain name and web site branding yet they failed to assess the level of saturation in the bargain hunting market. A great domain name and a cute logo could bring crowds of visitors a year back but not today.

As the result the website is somewhat stagnant (see the table above). I wrote about Deals.com earlier and why it may fail. Another example of a nicely designed quickly forgotten website is Trezr — read my review here.

Dealplumber

DealplumberDealplumber started around the same time as Dealspl.us and originally boasted a higher Alexa rank due to slightly earlier launch and the “share deals & earn” program which allowed affiliate ids in the submitted links. The website however wasn’t as well designed as Dealspl.us and most importantly it failed to deliver quality deals which in turn didn’t work well as far as retaining a user base goes.

Very recently they have somewhat improved the website design and navigation however it is still not as convenient as I would like it to be. Just a few things:

  • The menu at the bottom is hard to see (and there are some important things there)
  • There is no way to access all related store deals from a single deal page
  • I cannot mark a deal as a spam or expired

The web site functionality overall is a subset of that of Dealspl.us

Modoshi

ModoshiLaunched just last month Modoshi is trying to succeed where Dealplumber failed — revenue sharing — hence the web site name which in Japanese means “giving-back”. “Typically, Modoshi will receive 7 to 8 percent from an affiliate for each sale, and on average, 40 to 50 percent of that commission will go to the user who posted the deal”, according to the website’s co-founder Vaishali Anga.

I remember the main problem with Dealplumber was spam. Users would submit low-quality deals and benefit from the clicks the website attracted after the launch. In an attempt to improve the deals quality Modoshi is running daily contests. There are two ways how you can win a prize (currently $5): post a best selling deal or pick the best selling deal. While you can post or pick as many deals as you like only one deal and pick can be submitted every day to the contest. This is a very smart move which will certainly pay off.

Modoshi Contest

While Modoshi may be a fun game to play for school kids it still lacks some must-have features. For example I couldn’t find any way to browse deals by a merchant. They also don’t seem to have a separate section for coupons/promo codes. The thing I liked is that I could rank deals up and down without being logged in (the vote is associated with my IP address). This should give a boost to the user activity that Modoshi needs so much.

Conclusion

I have ranked each website on a 1 to 5 scale where 1 is the worst and 5 is the best. Here is the run down:

Dealspl.us Dealigg Deals.com Dealplumber Modoshi
Usablility 5 4 1 1 4
Functionality 5 4 3 3 4
Innovation 4 2 3 3 5
Design 4 2 5 3 3

No question Dealspl.us is the current leader in social bargain hunting. Judging by the features and the innovating marketing campaign Modoshi seems to be the next runner up. Dealigg is playing catch ups while Dealplumber is recovering from the early mistakes. Deals.com has good potential (especially given its catchy domain name) but the team needs to introduce some more innovation into what they are doing.

2006 marks the first year when social bargain hunting really caught up. While reviewed here websites have satisfied the essential demand there are still opportunities to build on what’s accomplished. In addition I think the market penetration at this point is not yet high and new players (or old players with new ambitions) will have a good shot at grabbing a piece of the pie — a good example is the recent social revolution at JudysBook.

Inspired by The Social Shopping Faceoff
from ReadWriteWeb

Deals.com goes social

Deals.comDeals.com has quietly launched over Thanksgiving as a new socially oriented Digg-style site for bargain hunters.

If you take a ride back in time you will be able to see that in previous life the domain hosted a traditional bargains site (first as Overstock and then independently) before in March 2005 it became a price comparison engine. This will be the third reincarnation and this time around it will join the likes of dealspl.us, dealplumber, judysbook, dealigg, trezr, and most recently — modoshi.

Demand Media who owns the project has set up a tutorial on how to use the new web site (by the way eHow which hosts the tutorial is another property owned by Demand Media).

I signed up for an account and had a short test drive. So far the impression is positive. Here are a few comments.

  • The Quick Submit Tool is a great idea. Drag the button to your browser toolbar and submitting deals just became much easier
  • No profit sharing of any kind… Huh? I guess with domain name like this you do not need it.
  • Items images/thumbnails are in details but not in the list view… Any particular reason for this? The visual element is a very important part of shopping. I wouldn’t hide it behind an extra mouse click.
  • Got to separate coupons and discounts from the rest of the merchandise. Mixing these different things is not very natural.
  • Need a page with the list of featured stores so users could browse deals by store as well as by category.

In general I suggest taking a look at dealspl.us who seem to be setting the standard in social bargain hunting. They have been fortunate to get in the market early and are now experimenting with such add-ons as user friends and discussion groups. And by the way, dealplumber — the dealspl.us closest rival — has recently done a redesign to look more dealspl.us-ish — that tells something, doesn’t it? :-)




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