Why deals drive billions, and how to build a platform that actually works
You don’t need a long pitch to explain why coupon platforms work. A good deal triggers something universal. A small win, a dopamine boost, the feeling of beating the system.
For consumers, it’s a shortcut to value. For businesses, it’s a way to be seen, drive volume, and move inventory. And for you? It’s a business model with high traffic potential, low onboarding friction, and recurring revenue baked in.
But while the idea feels simple, execution is anything but. Most founders don’t fail because their idea was bad. They fail because their coupon platform wasn’t built for how real people actually use deals.
Let’s talk about how to start an online coupon business the right way, i.e., with a clear strategy, battle-tested tech, and a product users trust from day one.
The Real Reason Coupon & Daily Deals Websites Keep Winning #
Deals aren’t a trend. They’re a behavior. And behavior doesn’t change. What changes is how it’s delivered.
Back in 2008, Groupon didn’t invent the idea of deals. It just changed how we accessed them via email, limited-time offers, and one-click checkout.It played with psychology:
- Scarcity (“only 19 left!”)
- Urgency (“expires in 2 hours”)
- Collective action (“unlocks when 20 people buy”)
That cocktail still works today but the format has evolved:
- App-first models
- AI-powered personalization
- Instant redemption via wallet
- Referral-based bonus coupons
- Geo-specific targeting
As consumers, we still want the win. As platform builders, we now have the tools to make it seamless.
Why So Many Platforms Want to Be Like Groupon #
Because it was one of the first digital businesses to scale local discovery profitably. Groupon solved a real problem: Businesses wanted foot traffic. Consumers wanted value. The platform sat between them and made money every time a match happened. That structure made it:
- Easy to scale across cities
- Flexible across verticals (beauty, food, travel, healthcare)
- Self-sustaining once liquidity kicked in
Even today, Groupon serves over 15 million monthly users, and similar platforms in the US, UK, Brazil, Germany, and the Middle East have built loyal followings using its core engine. So if you’re looking to build a website like Groupon, you’re not reinventing the model. You’re refining it for your audience, your region, your monetization logic.
The Question on Everyone’s Mind: Is Groupon Still a Profitable Company? #
Groupon’s public earnings have fluctuated over the years. While it saw massive growth in the early 2010s, profitability has become a challenge amid global expansion and shifting user behavior.
However, the online coupon business model itself remains viable. Groupon continues to serve over 15 million monthly active users globally and generates over $550 million in annual revenue. Many newer platforms have adopted its logic with leaner, tech-forward models showing that while Groupon’s profits may vary, the opportunity for new entrants remains strong and scalable.
The Global Landscape of Online Coupon Businesses in 2025 #
The global online coupon business is expanding, diversifying, and getting smarter.
According to Statista, the digital coupon market is expected to cross $42.91 billion by 2033, with more than 60% of consumers using online coupons before making purchases. This growth is fueled by mobile-first behavior, real-time discount triggers, and demand for price transparency.
Globally, the space includes:
- Honey (USA) – a browser extension that auto-applies promo codes at checkout, acquired by PayPal for $4 billion.
- ShopBack (Southeast Asia) – a cashback + coupon hybrid platform with deep brand partnerships.
- Picodi (Europe) – focuses on country-specific ecommerce coupons.
- RetailMeNot, VoucherCodes, Rakuten – still pulling massive traffic monthly.
These platforms show that the coupon & daily deals website model thrives in varied formats: marketplace, plugin, cashback aggregator, or mobile app.
If you’re planning to start a coupon business in 2025, you’re stepping into a matured, global ecosystem where execution quality matters more than being first.
How Coupon Platforms Actually Make Money #
Let’s demystify the model. These are the most common monetization strategies:
| Model | What It Means |
| Commission per redemption | You take a cut from every deal sold |
| Vendor subscription | Businesses pay a monthly fee to list offers |
| Premium placement | Merchants pay to appear on the homepage or featured sections |
| In-app purchases | Users pay to unlock exclusive or early-access deals |
| Advertising | Brands pay to show banner ads or sponsored listings |
You can combine models, A/B test them, or even shift over time as your platform grows. The key is having backend flexibility to support what you choose without rebuilding your platform every six months.
How to Build a Website Like Groupon? #
If you’re planning to start an online coupon business, you don’t need a fancy prototype. You need working logic that moves offers, brings vendors back, and builds habit. This section is for founders serious about building an online coupon business that works at scale. Not a project that looks complete, but a product that performs. Here’s how to get there faster.
1. Define the Use Case First #
Pick a niche, not a continent. A platform for food deals in Bangalore behaves differently from one for spas in Berlin. Outline the city, category, and user persona. That clarity drives everything else.
2. Map Out the Core Flows #
You’ll need four main systems from day one:
- A live deal listing that supports timers, tagging, and redemption caps
- A mobile-first redemption process (QR, code, or tap)
- A vendor dashboard that tracks redemptions and earnings
- An admin panel with approval logic, fraud alerts, and payout visibility
If you want to build a website like Groupon, these are non-negotiable.
3. Choose a Stack That Won’t Slow You Down #
Laravel-based builds give you modularity and speed. Use APIs for payments, location, and user accounts. Plan backend logic so it can be duplicated across regions or currencies later. That’s how the best coupon & daily deals websites expand without technical debt.
4. Make the Vendor Dashboard Your Strongest Feature #
The dashboard is where repeat listings begin. Include:
- Earnings view (per offer and per day)
- Redemption analytics
- Refunds and support request tracking
- Status toggles for live/expired deals
Vendors need results, not explanations.
5. Build the Interface for One-Tap Decisions #
Users scroll fast. Give them filters by location, category, and time left. Highlight “trending now” and “ending soon” sections. The faster someone finds and redeems a deal, the more they return.
6. Add Legal and Compliance Layers From the Start #
Handle:
- Merchant KYC and business registration
- Region-based tax rules
- Secure payouts with logging
- Data consent, download, and opt-out options
This protects your growth and unlocks partnerships later.
7. Test With Real Users Before You Scale #
Launch to 20–30 users and 10 merchants. Track how many deals they redeem, where they drop off, and what questions they ask. Don’t rely on guesses. Let behavior shape your roadmap.
8. Ship Fast, Then Watch Closely #
Once live, check daily:
- What’s getting clicked
- What’s getting shared
- What’s driving repeat redemptions
Use that data to plan new categories, incentives, or location launches. That’s how any online coupon business grows past the first version.
What You Actually Need to Launch a Coupon Business #
We’ve seen this go right and wrong across 15+ client projects.
Here’s what matters most, in product and operations:
1. A clear target: Geography, category, or demographic #
You can’t serve everyone.
Start with a specific market: restaurants in Toronto, spas in Amsterdam, family activities in Melbourne.
2. Easy merchant onboarding #
If a vendor can’t list a deal in under 10 minutes, they won’t stay.
Give them a frictionless dashboard, templates, and auto-approvals with manual override.
3. Fast redemption flow #
QR codes, UPI, wallet redemption, one-tap confirmations.
Whatever you choose, make it immediate.
4. Multi-device optimization #
Mobile-first isn’t optional. Neither is desktop usability.
Coupon platforms see 60–70% mobile traffic, so this is foundational.
5. Analytics for everyone #
Vendors should see redemptions, ratings, earnings.
Admins should see cohort retention, fraud attempts, top converters.
Users should see past redemptions and savings.
You don’t need every feature upfront. But your system should grow with your business, not slow it down.
How to Get Your First 1000 Users and 100 Vendors #
A platform is only as valuable as the activity it sees. And that begins with liquidity: buyers redeeming offers and vendors seeing results.Here’s how successful platforms build that early momentum:
Referral Loops for Users #
Give early users referral rewards (points, coins, or future discounts) for bringing in friends. Make it easy to share via WhatsApp, email, or QR codes.
Manual Merchant Onboarding #
Handhold your first 100 businesses. Offer them:
- Free trial listings
- Professionally written deal copy
- Priority placement for 30 days
Hyper-Targeted Ads #
Run small, sharp campaigns targeting mobile shoppers, restaurant-goers, or niche hobbyists. Focus on urgency-driven headlines.
Partnerships with Local Influencers #
Micro-creators on TikTok, Instagram, or YouTube can demonstrate your deal redemptions and build social proof.
If you’re building a website like Groupon, remember: they started with 400 email subscribers and one city. Focus on density over scale in your early months.
Should You Build from Scratch or Use a Pre-Built Coupon Platform? #
Let’s break it down honestly.
Building from scratch gives you: #
- Total control
- Unique branding
- Feature flexibility
But it also means:
- Months of development
- High upfront cost
- Long testing cycles
- Risk of delays or technical debt
Pre-built platforms give you: #
- Faster time-to-market
- Pre-tested UX flows
- Backend logic for redemptions, vendor payouts, wallet handling
- Custom branding and feature extensions
This is where SuperBack comes in. At Enactsoft, we’ve built a modular coupon platform engine that lets you:
- Launch in weeks, not quarters
- Add or disable features on demand
- Integrate custom design without code rewrites
- Manage redemptions, referrals, refunds, and fraud, all from one dashboard
The goal isn’t just to “start a coupon business.”The goal is to build one you don’t need to rebuild.
How to build a website like Groupon? #
When you start a coupon platform like Groupon, it’s tempting to pack in every feature. But what actually matters at launch is what gets your first redemptions, repeat vendors, and platform feedback.
Here’s a breakdown of what’s essential and what can wait:
Start with these core features: #
- A smooth coupon listing and redemption flow that lets users buy and redeem without friction
- A simple vendor login panel that allows businesses to create, manage, and track deals without help
- An admin dashboard that shows deal performance, vendor activity, and redemptions in real time
- A clean, mobile-responsive layout that works flawlessly on phones, since most redemptions happen on mobile
- Payment gateway integration to collect user payments and track success per vendor
Leave these for future phases: #
- AI-based deal suggestions or auto-personalization engines
- Wallet cashback systems or gamification (like spin-the-wheel, badges, etc.)
- Advanced referral tracking systems for affiliates
- API access for plugins and integrations
- Multi-language or regional variations unless your target market demands it from day one
Your goal isn’t to look complete. It’s to be usable, trustworthy, and ready to grow. You don’t win by being feature-heavy; you win by being frictionless. Focus on getting real users and vendors through the door. Then build from real usage, not assumptions.
Why Most Groupon Clones Don’t Work (And How to Avoid That) #
We’ve audited dozens of coupon clones. Most fail because they replicate the look, but miss the logic.
Here’s what breaks:
| Common Flaw | What Happens |
| Slow system performance | Delays in loading or redemption frustrate users and lead to drop-offs. |
| Poor tracking & reporting | No visibility into redemptions, vendor ROI, or campaign success; decisions become guesswork. |
| Limited scalability | Platform breaks or slows down as users and vendors increase. |
| No role-based access | Teams can’t delegate tasks securely; vendors or staff may have too much or too little control. |
| Inflexible payout system | Manual vendor payouts delay trust-building and increase ops overhead. |
| Lack of localization support | Limits expansion into new geographies; platform can’t support local currency, language, or tax formats. |
| Static deal models | Can’t handle bundles, time slots, or category-based filters. |
| Weak merchant UX | Businesses stop listing after one failed attempt. |
| Poor redemption tracking | Users complain. Vendors churn. Refunds pile up. |
| Lack of SEO structure | Deals don’t index. Traffic doesn’t come organically. |
| No growth levers | No referral loops, bonus coins, or gamified actions. |
Our Groupon Clone Script fixes that from the ground up. It’s not a theme. It’s a growth-ready system for coupon platforms that want to scale intelligently.
What About Tax, Fraud, and Compliance? #
When building a coupon & daily deals website, functionality is just one part of the puzzle. Operating responsibly is another.
Here’s what to plan for:
Sales Tax Handling #
Different regions apply tax differently to coupons. For example, in the US, some states tax pre-discount value, others post-discount. Your system should accommodate both.
Merchant Verification #
Require documents or onboarding steps (KYC, business proof) before vendors go live. This protects users and improves deal quality.
User Data & Privacy #
If you’re operating in the EU or regions that follow GDPR, make sure your platform supports:
- Cookie consent
- Opt-out for marketing
- Deletion and download of user data
Anti-Fraud Logic #
Coupons used multiple times, fake redemptions, refund loops. These can kill trust fast. Build redemptions to be:
- Time-bound
- QR-code locked
- Single-use with live logs
With Superback, Enactsoft ensures these mechanics are already in place — so you can stay compliant and scale confidently.
From Launch to Scale: Growing Your Coupon Business #
Once you’ve launched, the real work begins: retention, automation, and expansion. Here’s a simple scale roadmap:
Month 1–3: Get Traction #
- Focus on a single city or niche
- Use bonus coupons and referral loops
- Manually monitor redemptions for feedback
Month 4–6: Automate & Personalize #
- Add smart deal feeds: trending, expiring soon, near you
- Let vendors schedule deals and get auto-analytics
- Offer in-app wallet or bonus credit
Month 7–12: Expand or Specialize #
- Add categories like travel, events, subscriptions
- Offer SaaS tools to vendors (reporting, CRM, repeat deal logic)
- Go multi-region or create white-label sub-platforms
With Superback, powering your platform, these transitions become system upgrades — not rebuilds.
FAQs #
What is an online coupon business?
It’s a digital platform where users browse and redeem discounts for local or online purchases. Businesses list offers, and the platform earns from redemptions or subscriptions.
How profitable is a coupon website?
Profitability depends on vendor retention, user acquisition cost, and redemption volume. Most coupon businesses break even within 6–12 months if scaled well.
How do I build a website like Groupon without coding?
Using platforms like Superback, you can launch your site with a visual admin panel, vendor dashboard, and all coupon logic pre-built.
What tech stack is best for a coupon site?
Laravel-based frameworks offer speed, modularity, and scalability. Add-ons like Stripe, Twilio, and Firebase support real-time UX.
Coupon Platforms Aren’t Dying. They’re Maturing. #
The platforms that win now aren’t the ones that just show deals. They’re the ones that make deals feel good to use Smart search. Clean design. Trusted brands. Fast redemption.
All built on a backend that doesn’t crumble at scale.
At Enactsoft, we’ve helped global startups, local heroes, and niche communities build coupon businesses that grow beyond launch.
So if you’re looking to build a website like Groupon, here’s our offer:
Let us give you the infrastructure.
You bring the idea, the market, and the hustle.
