Just how does social couponing work?
Computer users sign up with one or more social couponing companies, each of whom negotiates discounts — usually 50 percent to 90 percent off — with local restaurants. Every day, subscribers receive an email promoting that day’s deal, and the featured merchant gets a pool of potential customers.
In this type of target marketing, deals can be customized by ZIP code so that subscribers receive promotions pertaining only to their area. The featured merchant and the couponing company split the revenue (though not always evenly), and purchasers enjoy a sweet deal.