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
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
work from home?
Yes

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $35 $3,250
Employee & Freelancer Expenses $0 $5,500
Equipment & Supply Expenses $525 $5,500
Website Costs $232 $6,500
Business Formation Fees $5,600 $20,400
Retail Business Expenses $0 $16,150
Inventory Expenses $350 $14,750
Software Expenses $150 $3,044
Advertising & Marketing Costs $75 $5,036
Other Expenses $0 $800
Total Startup Costs $6,967 $80,930

Successful Businesses

Business URL Rank
R retailmenot.com #1,427
GoodRx goodrx.com #10,654
CouponsPlusDeals couponsplusdeals.com #17,904
Big finds from small businesses 2findlocal.com #27,768
khou.com khou.com #32,113
Best Coupon Hunter bestcouponhunter.com #179,663
Personalized Christmas Ornaments ornamentshop.com #194,147
Wiscnews.com wiscnews.com #215,044
Real California Milk realcaliforniamilk.com #532,847
@HomePrep athomeprep.com #570,198
Digital Coupon Platform for Business mezzofy.com #578,858

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

    An affiliate program is a way to reward people outside your organization to share your product.

  • 2

    Word of mouth

    The most tried and true way to grow a coupon business is through word of mouth - some entrepreneurs would say it's more important than all social media.

  • 3

    Advertising on social media

    Social media advertising is one of the leading ways to get the word out when it comes to coupon business.

    There are various different Social Media platforms available to you. Some may be more critical for your marketing efforts than others, however, it's important to have an understanding of what's out there and available to you.

    Learn more about advertising on social media ➜