LivingSocial is a daily deals service that has hit $8.6 million in one day of sales according to Tim O’Shaughnessy. This is a record for the company. A major reason for the record was because of a discounted Sam’s Club membership.
Sources with BusinessInsider reported that the Sam’s Club deal was a revenue-sharing agreement, which meant that it was profitable. Previously LivingSocial sold discounted gift certificates at a loss with big companies like Whole Foods Market and Starbucks.
LivingSocial hit $536 million in 2012 revenues, which is up from $250 million in 2011. The company saw major losses from non-cash charges due to acquisitions though.
Below is an email that O’Shaughnessy sent out:
Subject: Records were made to be broken
With the Sam’s Club promotion powering us once again, we set another NEW record in global sales for the day, with $8.6mm yesterday. Additionally, if we sell 146,012 Sam’s Club vouchers (about 2k more as of this writing), we’ll set a new record for largest Net Billings deal ever.
We still have much work to do to hit our targets for the month, quarter and year, but the last few days have been a nice way to get off to a solid start in March.