LivingSocial Testing Out A Monthly Subscription Service Called LivingSocial Plus


For those of you that spend a lot of money on daily deals from LivingSocial, this may be of some interest to you. LivingSocial is testing out a new subscription service called LivingSocial Plus. LivingSocial Plus is a $20 per month service where users would be credit $25 in Deal Bucks every month which would be automatically applied to the next purchase.

LivingSocial is marketing the service by pitching buyers on Plus with a checkout graphic that shows the price of the current deal reduced by the $5 in bonus Deal Bucks. The advantage of this idea for LivingSocial is that they would be able to create a recurring income stream by automatically charging users every month. They would also keep users engaged on their website and they would make free cash if the credits are not received. The disadvantage is that they lose $5 for every deal that is redeemed.

My guess is that the balance would work out more in LivingSocial’s favor. How many of you have had the same Netflix DVD sitting around your house or apartment for over a week? Most of you. Exactly.

[TechCrunch]

This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at
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