Living Social jumped into the spotlight last week with a $20 for $10 Amazon gift certificate group-coupon promotion that blew Groupon’s en masse GAP experiment last year out of the water.
Is Living Social a real Groupon threat, or a flash in the pan? Well, here’s one reason Living Social did so well with this promotion. They have a very specific sharing motivation. After you purchase the deal, and share the link to your friends via social media channels, if 3 of your friends purchase the deal via your link, your deal is free.
This is huge. Not only are the deals great, but the idea of getting it for free? Now, Groupon has been experimenting with this as well. Giving specific cash benefits for spreading the good news of good news. But the “share with 3, get 1 free” idea is so straightforward and do-able, Living Social might have found their way in the door.
And Groupon may be sweating giving up that $6 billion deal.