LivingSocial Just Declared War On The Daily Deal Aggregators - 01/07/2011

Nick Saint

LivingSocial, thesecond-biggest daily deal company behind Groupon, is cutting deal aggregators out of its affiliate program starting tomorrow

Living Social,  li
ke most daily deal sites, has a program for rewarding third-parties that refer them new subscribers. That won't change, but starting tomorrow, pure aggregators like Yipit and Dealsurf will be excluded, according to an email from LivingSocial sent to relevant companies.

Affiliate fees are the major source of revenue for aggregators (to the extent that they have established their revenue models). Up until now, LivingSocial offered some of the most generous commissions.

Why would LivingSocial cut off a source of new customers? A few reasons:

We've reached out to LivingSocial for comment. Here's the email sent out yesterday:

Hello all,

As of Friday, January 7th, 2011, the LivingSocial Affiliate program will discontinue its relationship with all daily deal aggregators (any website that features a collection of daily deals as its primary content). LivingSocial has determined that your site falls into this category, meaning you will lose access to at the aforementioned time; all remaining payments will be processed in mid-February.


If you feel that your site has been inappropriately labeled, feel free to reply to this email. Otherwise, please respect that this decision is final.

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