For a moment there, daily deal sites were all the rage. Now it seems the fad is on its way out, as today Yelp follows Facebook's announcement last week, reducing its presence in the daily deals market, reports Bloomberg. "Yelp will cut its sales staff dedicated to Yelp Deals by half, the company said yesterday." While they don't plan on cutting coupons out completely, these moves look like they signal the decline of the daily deal site frenzy.
There was a daily deal sites bubble. Too many companies, not enough interest. People are sick of it. Getting one or two emails from your daily deal site of choice was nice, but people are over it, continues MacMillan. "52 percent, of U.S. consumers who use daily-deal services say they feel 'overwhelmed' by the number of e-mails they receive about deals on a daily basis, according to a survey conducted earlier this year by PriceGrabber, a division of Experian Plc. About 60 percent of people surveyed said they feel the daily-deal industry is too crowded."
And not only have the deals lost their shine for customers, but participating companies have lost interest too. After participating in deals from one site, merchants get unsolicited calls from others. "They send me e-mails, they call me, they call me again," said Kiebpoli Calnek, who ran a Yelp deal told Macmillan "I told them, 'I’m burnt out from this deal. I have 500 new clients. Why would I want to do another one?" Without demand, these companies just can't make money.