Latest reports claim that the hot deals websites are not doing so well. These websites zoomed to very high popularity levels suddenly and now facts pointing to the other side are showing up. Almost one third of such daily hot deals sites have shut down and there are rumors that many more will not be offering daily deals anymore.
This downward trend is not reflected in the deals by Groupon, LivingSocial and others who are doing quite well. A new study conducted by research firm ForeSee, has shed some light on the topic. While American customers are still spending money on daily hot deals but the business is just not good as it was in 2010. According to the study, the number of visitors who were members of the top 40 websites who were enrolled in at least one other site was 60% which is down from the 65% it enjoyed in spring. Also the percentage of members who bought these daily hot deals over the last 90 days decreased from 67% in the spring of 2011 to 63% in early winter of 2011.
Though this report finds downward trends, the daily hot deals sites still remain lucrative because there is a larger likelihood of customers coming to spend money with the businesses in the deals. As many as 12% of the customers have admitted that they didn't know of the company name before they saw the deal, so it is still a good platform for businesses to get new customers.