Business Idea

Start A Coupon Business

About

Starting a coupon business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell coupon, or selling coupon online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a coupon business ➜

Key stats

market size
$100M
starting costs
$43.9K
gross margin
40%
time to build
6 months
growth
SEO
time investment
Side project
work from home?
Yes

About

Starting a coupon business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell coupon, or selling coupon online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a coupon business ➜

Key stats

market size
$100M
starting costs
$43.9K
gross margin
40%
time to build
6 months

 

growth
SEO
time investment
Side project
work from home?
Yes

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $750 $7,000
Employee & Freelancer Expenses $151 $352
Equipment & Supply Expenses $563 $5,200
Website Costs $303 $7,215
Business Formation Fees $5,600 $20,400
Retail Business Expenses $1,250 $11,650
Inventory Expenses $350 $14,750
Software Expenses $162 $3,094
Advertising & Marketing Costs $75 $5,036
Other Expenses $0 $800
Total Startup Costs $9,204 $75,497

Successful Businesses

Business URL Rank
RetailMeNot retailmenot.com #1,427
GrabOn grabon.in #6,150
GoodRx goodrx.com #6,363
CouponsPlusDeals couponsplusdeals.com #17,904
Coupon Scorpion couponscorpion.com #25,467
VoucherCodes vouchercodes.co.uk #68,116
Coupon.ae coupon.ae #73,890
Living Rich With Coupons livingrichwithcoupons.com #84,485
afullcup - Grocery Coupons & Deal Forums afullcup.com #166,442
Best Coupon Hunter bestcouponhunter.com #179,663
Personalized Christmas Ornaments ornamentshop.com #194,147

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Ability to start your business from home It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
Rewarding work Starting a coupon business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Traffic to your website A coupon business gives people a reason to visit your website and to keep coming back to you!
Meaningful business connections You never know who you will meet as a coupon business. This could be the start of an incredible business opportunity!
High customer retention rates Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.
Cons Description
Motivation of employees If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.
Longer Sales Process A coupon business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
Low margins The gross margins for your coupon business are typically around 40%, which can make it more challenging to incur new expenses and maintain profitability.
Taxes As a coupon business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.
Churn In this business, customers can cancel their membership or subscription for your services - which can make revenue forecasting challenging and unpredictable. It's important to focus on your churn rates and trends so that you can prevent this as much as possible.
Time commitment With starting a coupon business, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.

Marketing Ideas

  • 1

    Affiliate program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

  • 3

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

    Learn more about social media advertising ➜