Deals run on the TownHog Network often include CBS radio advertising at no charge.
Recently, in response to a blog entry about how TownHog stacks up against Groupon and LivingSocial, I received a perceptive comment from Cecile:
"You’re still charging a FEE…call it upfront or via sales, bet you’re charging same fees?
Another thing these businesses are what we in the advertising spectrum call “One Shot” Pony…or One-Shot-Phonies…after all the dust has settled…the store owner made very little commission, stirred up a lot of excitement…and most of those buyers will now seek other One-trick-Deals 
" -Cecile
First, thanks for the comments. Here are my responses:
1- “You’re still charging a FEE”: While it’s true that deal companies charge a commission on sales of vouchers, I personally think this is very different than traditional fees or advertising costs. That’s because the commission is only collected on actual sales of a voucher. If the voucher doesn’t sell, the merchant owes nothing.
Try this: Go back to your local newspaper and say, “You ran the ad as promised, but we didn’t get any business, so I’m not paying anything.” Or go back to Google and say, “Despite your only charging me for clicks, I still didn’t get any business afterwards, so I’m not paying anything.” See? A merchant still has to pay those fees.
But with deal companies like TownHog, the merchant never really pays FEES, they pay COMMISSIONS only when something actually sells. That is a smoking deal for merchants, and frankly, revolutionary.
2- Daily Deal programs are like a “one shot pony” for the merchant: A very good point, and a lot of merchants are discovering this. Frankly, any business earned on a discount is already starting at a disadvantage for the merchant. But daily deal marketing is here to stay, so merchants that make peace with it will come out ahead.
Furthermore, at least with TownHog, we spend a lot of time designing what happens AFTER our promotions. Our daily deal is one tooth on a cog of marketing, and it can drive a lot of new traffic and revenue, but it doesn’t replace a comprehensive marketing strategy. For example, when a buyer comes in with a TownHog voucher, it’s important the merchant is ready with some loyalty marketing.
Lastly, daily deal marketing isn’t for every business. In fact, I’d argue it isn’t even for most businesses. Personal trainers, for example, don’t do well. Chiropractors either. But premium restaurants, spas and destinations are perfect. And new opened merchants are well suited to run a deal too.
Thanks for your comments. My feedback is relevant to North American markets. Other markets may have localized issues that go beyond these notes.
Also, these are strictly the opinion of myself, and not to be taken as the official stance of any deal company.
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ADDED April 28th, 2011 by the author:
A number of folks have contacted me directly, seeking customer support with their TownHog purchases.
While I did work for TownHog for a time, I no longer do. I’m currently the Director of Marketing at Screamin Daily Deals.
That said, I’m sympathetic to customers who are having trouble reaching TownHog. To that end, here’s all I know about how to contact them. This is listed on TownHog.com, and I’m providing this in the hopes it will help.
TownHog – Dotblu, Inc.
343 Sansome Street, Suite 510
San Francisco, CA 94104
Phone: 1-888-673-1321
(Business Hours: Mon-Fri, 9AM-6PM PT)
Questions: info@townhog.com
Support/Help: support@townhog.com
Business questions: info@townhog.com
Media: pr@townhog.com
NOTE: Some people have mentioned they have no luck getting any response going through these channels. I personally called the customer support line and it went to voicemail during business hours.
If you’re still frustrated, there is another option: post your complaint on the company’s Twitter feed. TownHog’s is simply @TownHog.
Related articles
- The Future of Daily Deal Sites like Groupon, LivingSocial and TownHog (fierceselling.com)
- Bizarre Merchant Behavior in the Face of Daily Deal Sites (fierceselling.com)
- TownHog.com beats Groupon, LivingSocial (fierceselling.com)
- What Will the Economy Do to Daily Deal Sites? (fierceselling.com)
- Spawn of Groupon (slate.com)
- Why Groupon Sucks (zacharyadamcohen.com)
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