Facebook vs Groupon-you choose

FACEBOOK is now in the dining deal arena and who wants to challenge their possibilities. With over 500 million members, there is power in their history, strength and potential. Yes, groupon, Eversave,Town Hog and living social and the multiple imitators popping up everywhere should be scared, but not scared away. CLICK.

Facebook is touting 3 easy reasons why their deals are a good product:

1. “Let Facebook do the marketing. Team up with our specialists who will be with you every step of the way to market your business on Facebook.”
2. “Generate buzz and sales. Put your business at the center of the conversation and promote your deal where friends share recommendations.”
3. “Build lasting customer relationships by offering unique social experiences that leave an impression.”

You see, in Facebook's model, your friends are the 'groupon" so to speak. Your friends will promote and bring on more friends, virally spreading and growing the share of the deal. With the average facebook user having 150 friends, this is a phenom in the making!

The cost you ask? "There are no upfront costs. BUT, Facebook will take "a portion of the proceeds if a deal is purchased."

The dining deal and group-coupon concept can work and has Cafe Gia, of Baltimore's Little Italy, has seen an extraordinary return after selling 1101 groupons a few months back. Daily, the small Mom and daughter shop is said to be redeeming its groupons and greeting new customers daily.

On the other hand, very new out of the block, a local Mexican-taco restaurant, similar to a Chipolte, in Texas, sold over 6000 groupons and had trouble fulfilling orders, but is pleased overall.

Unfortunately, when we contacted facebook, we found there are only 3 test markets and got this response: "

Deals on a limited basis and as a result we are temporarily only accepting requests from businesses in the following U.S. cities: San Francisco, Atlanta, and Austin."

Now facebook is also integrating both this dining deal and the geo-targeting tool most popular with Foursquare users with adding deals for its Facebook Places. But unlike the dining deals prior discussed, these facebook deals can take place now using your business 'page'.

For more info, simply click here to join and share a deal.

CITYPEEK Patti is here to help with your social networking consult, setup, training and business integration. Email or 'like' CITYPEEK Patti on facebook.