SCOPE OF DEALS AND COUPON SITES IN INDIA

By: Sahil Garg

Business Goals of a Coupon site Phase 1: Deals and Coupon site + app Affiliate site with reselling options from direct as well and indirect

clients Cash Back, bitcoins and reward points system for user retention Phase 2: A global e-commerce marketplace to connect subscribers with

local merchants by offering activities, travel, goods and servicesa cash back and rewards site like Group on (www.groupon.com)

Phase 3 : Employee Benefits and discount club (Web + app), reference (

www.workadvantage.in)

Why Affiliate only when….First question that comes in mind when we are taking about digital industry is, why been a liaison or an affiliate rather than a direct services provider specially when the digital industry is growing at rate of 35% every year. Answer is simple!!!Go back in any time or ages, liasoning has been one of the most safest model of business with minimum risk and maximum returns specially when we have a limited funds to invest. Stats and facts to follow in coming pages with give you a better idea and understanding. So here we go:

What is Affiliate Marketing Affiliate marketing is a type of performance-based

marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate's own marketing efforts. The industry has four core players:

1. The merchant (also known as 'retailer' or 'brand')2. The network (that contains offers for the affiliate to choose from and also takes care of the payments)3. The publisher (also known as 'the affiliate') and 4. The customerThe market has grown in complexity, resulting in the emergence of a secondary tier of players, including affiliate management agencies, super-affiliates and specialized third party vendors.

How Affiliate Marketing Works

Scope of Affiliate industry in India

Experts have made an estimate that the e-commerce industry in India has rose to $12.6 billion in the year 2013 which is a great improvement from the 2009’s $3.8 billion. The consumer base of the Indian market is expected to touch 100 million people next year which is a whopping figure when compared to the 35 million recorded in 2014.

Above stats are based on the reports offered by the Annual online Shopping Growth Trends Report of Google along with the collaboration of Forrester Research. Considering the ripples created by Indian market in affiliate marketing, it is well evident that affiliate marketing would be a game changer for all online brands and businesses.

Scope of Affiliate industry in India

Internet users in India (IAMAI stats)

Scope of Affiliate industry in India Based on the report of CMO Council India, the expenses of digital

advertisements are expected to rise by 45%, which is more than 507.41 million in US$ that was spent in the year 2014.

This indicates that the spending in digital ads have been a proportionate rise from 28% during the year 2013 to 30% of 2014 to a 35% last year.

Apart from the e-commerce websites like Snapdeal, Amazon and Flipkart and others that have affiliate programs spending a huge sum on their digital ads each year, other sites have also followed suit to make it big in online sector.

In a nutshell, the info graphic in previous slide shows that a major portion of the traffic enjoyed by online shopping sites attributes directly to the rise in affiliate marketing. Hence it is now important to decipher the future of Indian affiliate market.

Role of Coupon/Deals sites in Affiliate industry The fact that E-Commerce is burgeoning in India

is no longer something that people aren’t already aware about. The entire category is growing at a compound annual growth rate of around 35%, and was valued at USD 26 Billion in 2015. Given the rise in popularity and angel investor backing, the category never fails to see someone new and unique starting up, and is pegged to be valued at USD 100 Billion by 2020. Retail is currently one of the most popular.

An E-Commerce knowledge platform, e-Tailing India, has mentioned that Coupon Sites are contributing about 30 % to 35 % of the E-Commerce traffic in India. In some time this number is also slated to see growth and should rise to about 40-50 %

How Are Coupon Websites Helping Businesses?

India is a price sensitive market. A survey conducted by “Coupons.In” revealed that apart from comfort, Indians prefer shopping online because of the ease to locate a really good deal, and use it to receive a great discount.

For Startup businesses the initial objective is to drive brand awareness and build targeted traffic. Some of the available paid advertising options can prove to be expensive, and yet the returns on that marketing investment could depend on how the campaign is being operated and optimized. With Coupon websites, a business gets access to targeted traffic and the Customer Acquisition Cost is technically lower than a consumer acquired by Google Adwords.

Some of the popular Coupon Websites are collectively generating more than 7 Million page views a month for their partners, and recently a report carried out in YourStory.In mentioned that CashKaro (a popular Cashback website) had driven sales worth 25+ Crores for its partners

Consumer Behavior Analysis

Most Popular Searched Niche And How Users Search Coupons

Top Deals and Coupons sites in India

Group On/ Near By Cash Karo Coupon Dunia Deals and Price Free Kaa Maal Desidime Mydala

Sources of Business Direct clients – All ecommerce and digital clients

looking for branding and sales with their respective affiliate programs

Digital Agencies – dedicated media account handlers for clients response for digital marketing

Affiliate/Ad networks – Main source of business which have links to all the other 3 sources and multiple campaigns in their kitty available to promote anytime

Search and Social Media - Global Search and Social media engines offering media and marketing platforms to clients

Revenue Models CPC/ CPV (Cost per click/Cost per visit) – Payment is

done on the basis of clicks/visits that we generate for the client through our traffic

CPL/CPA/CPI (Cost per lead/Cost per acquisition/Cost per install)- Payment is done on the basis of completion of a desired goal which could be filling a lead or acquisition post lead generation. Incase of mobile campaigns, payment is done on the basis of per new install which is basically CPI

CPS (Cost per sale) – Most common among deals and coupon sites, this model enables a win-win situation for client, publisher as well as user where is payments is done on every successful transaction or sale

Direct Clients

Affiliate Network/Agencies:

Search Engines and Social Media

Targeted Client Acquisition Projections

Targeted Client Acquisition Projections

Targeted Traffic Projections

Financial ProjectionsYear Expenses (INR) Revenues (INR) Profits (INR)

1 5800000 2380000 -3420000

2 7200000 15200000 8000000

3 9000000 24000000 15000000

4 11000000 30000000 19000000

5 12000000 35000000 23000000

6 14000000 40000000 26000000

7 15000000 50000000 35000000

8 17000000 60000000 43000000

9 18000000 65000000 47000000

10 20000000 70000000 50000000

Note: For detailed projections, kindly refer to excel attached alongside.

Sahil GargSahil.nrsoft@gmail.com09654650864