Interview: Sell My Deal

Featured Interview with SellMyDeal.com

Person answering the questions: David Shekhter

Title/Position at the company: Founder

 

SellMyDeal is an online marketplace where people can buy and sell deals from Daily Deal sites. The purchase is immediate and the voucher can be used and enjoyed instantly.  As more and more people buy daily deals, there develop a need for a marketplace to accommodate the reselling of unwanted or unused vouchers. SellMyDeal is that marketplace. Essentially a craigslist or Kijiji for daily deal vouchers, except a lot better looking!

We interviewed David Shekhter, its founder.

 

QUESTIONS:

Why did you start a secondary marketplace for Daily Deal sites?
I bought a bunch of coupons off Groupon solely because I felt  if I didn’t buy it I would miss the opportunity and never be able to buy that coupon again.  I soon after realized that I was never going to use that coupon and that buying coupons to use a year down the road wasn’t the smartest idea.  At the same time, more and more coupon sites opened which meant there must be thousands of people that felt the same way as me.  That’s when we decided there needs to be a secondary market for people to sell unused coupons, and for buyers to be able to purchase coupons that they need in the near future, not a year down the road.

Where is your main office?
In Toronto

What are your plans for expansion?
We are constantly adding new features to our site.  We are in the midst of adding an interesting way for merchants and other daily deal sites to use our services.

Where do you feel you rank in the marketplace space in Canada?
We are the clear leaders in Canada and that there are no other relevant sites that are doing what we do.  Yes, there are some other sites that launched similar services but if you take a look at their deal inventory, their website design and functionality,  you will see it pales in comparison.

How is your service different from the others?
We have the most payment options, the easiest way to post vouchers, and top notch customer service. Our customers are the most important aspect of the business, we made it easy for them to use the site, make payments and receive payments.  Although our technology and backend is fairly sophisticated, we wanted a simple user experience and I believe we accomplished that.

What else would you say your service does very well compared to others?
We communicate and service our clients well.  We guarantee the vouchers are unused or we give the customer full money back. As well, like I mentioned in the previous question made it simple for the user to access and use our site. To give you an example, we allow different ways for a customer to post a voucher, either upload it themselves and provide all the details or use our free “voucher valet” service. They can send us the vouchers and we will do it for them. This is a service that is unique to SMD.

How does your revenue model work?
We collect 10% of the gross sale.  This covers all marketing and processing expenses.

Understandably you won’t share numbers about your subscriber size, but what can you tell us about your audience?
We are growing very fast. There have been quite a lot of articles lately about Groupon remorse, and we are the solution to the problem. We have seen a lot of customers who have used our service, come back and use it again. Without giving away too much, we see very significant daily growth.

What excites you most about the business?
The size of the industry and the growth potential.  We feel that the daily deal industry as a whole keeps growing and growing. SMD is very excited at the opportunity to be able to service a large number of the people that buy deals on daily deal sites.  I see a lot more niche sites, and that’s great for the industry. Daily Deals is still in its infancy, and I am excited to see some of the innovation the industry will produce. We hope to be a big part of this innovation as the market matures.

How do you see things progressing in 2011 in this market?
I see a lot more coupons being sold and a lot more people that need a solid place to resell them. I think the coupon industry is becoming a way of life for many people.  It is starting to dictate what they do, where they eat, where they travel etc…

What services would you like to offer consumers in the future?
We have many new services that are currently in development.  New ways of posting deals, new payment options,  merchant tools.  We are constantly asking ourselves, how can we make this a better service? We want to focus on the secondary market, but there are innovate things we are doing to grow and provide even more great deals to our customers. As for the details, you will  just have to wait and see.

One or two things you’d like Daily Deal sites to do better:
I would love for Groupon and the larger companies to create an API that validates the authenticity of coupons.  That would make our life a lot easier.

Where is the Daily Deal industry heading? Give us your vision of the next couple of years.
As I mentioned above, I feel like deals are becoming a way of life for people,  so I see the industry growing and growing.  That said, I think the hype is dying down so it will be tougher for the small companies to compete against the large ones that hold the market share.  I think the systems are becoming more advanced and companies are starting to target consumers on a more personal level.  This is all great for us because the more coupons that are bought, the more coupons that need to be resold.  We want to continue providing our customers with a huge option of deals at any time and a place for them to sell the ones they aren’t using.

We thank David from SellMyDeal for his time in answering these questions. Very much appreciated. If you would like to be interviewed or nominate others to be interviewed, please let us know.

4 Comments
  1. marty778@gmail.com'

    Love this idea! I have way too many deals that I will never use. Looking forward to using Sell My Deal! Great looking site also.

  2. mikeymike@gmail.com'

    Very interesting idea!! Its like a stubhub for the voucher industry! With all the vouchers/deals out there, a secondary market is such a necessity.

  3. ddunger@yahoo.ca'

    This can be useful for me!! Very cool 🙂