Innovative Business Concept: Discount Club Card

Audio Seminars & Business Podcasts Advertising Business Ideas 05.12.2013  0 82 0
Innovative Business Concept: Discount Club Card

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Discounts, promotions, and discounts are effective tools in the battle for customers. In most cases, when customers see a favorable offer, they try to take advantage of it if possible. This is why calculations are made during the implementation of all these activities.

Oftentimes, the specific representative earns income from such promotions. But how can one profit from such systems?

Discount Club Card

One option is to create a discount club card. In other words, you can create a card that offers discounts at numerous stores both online and offline: stores, studios, salons, cinemas, clubs, gas stations, and more. This could potentially bring in significant profits.

Business Model and Legal Aspects

At this stage of developing our business, there are several key steps:

  1. Registering the business as an LLC or sole proprietorship;
  2. Registering the trademark;
  3. Developing contracts;
  4. Signing contracts with potential participants of the discount club system.

Participants of the Discount Club System

There are two categories interested in the discount club system:

  1. Cardholders. With such a card, the need for many other discount cards is eliminated. Why carry a bunch of clutter when you can get discounts with just one card;
  2. Companies, firms, individual entrepreneurs, etc. The discount club system helps increase customer flow through the free advertising provided by the partners of the discount club system organizer.

Earning Essence

There are three main earning directions:

  1. Selling club cards;
  2. Membership fees;
  3. Organizing and conducting promotional activities.

Business Geography

Practice shows that within a couple of years, such a business can be developed in the territory of a small region. However, you can expand further. Thanks to the internet network's development, you can gradually expand to neighboring regions and move smoothly beyond.

Cost of the Business

During the establishment phase, the minimum capital investment will amount to $5,000. In most cases, the funds will be used for brand creation and image support.

As the business grows, additional capital investments will be required. The amount of funds needed depends on the region where the business is planned to be established.

Business Payback

The discount club system is a medium-term project in terms of payback. The time to the first profit can vary from 1 to 2 years.

So, we've covered all the key aspects of the business idea - the discount club system. Now, it remains to take the small step of gradually addressing organizational matters and developing the idea.

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05.12.2013  0 82 0
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