Yesterday Facebook began promoting the company’s new deals service which is expected to compete directly with Groupon and LivingSocial.
As reported by Josh Constine, the promotion came through the news feed which states that a number of your friends have subscribed to deals and then links to the Facebook Deals landing page. It’s a pretty substantial promotion which will probably function similar to deals promotions in the future. It’s clear that the company is doing everything it can to promote the soon-to-be-released service, including promoting that the service will out email promotions, most likely on an opt-in basis.
The Facebook Deals landing page looks like a promotion for any other deals service, promoting offers like 50 percent off a winery tour. While the process currently requires interacting with a Facebook Sales representative, we’d guess that this will become much more automated in the future as Facebook looks to expand their offerings to all small businesses. Facebook also hopes that this can become a large business as they’ll be taking a cut of all deals that are purchased.
What’s not clear is what that cut will be. Additionally, it’s not clear whether or not the new Facebook Deals will use Facebook Credits as part of the transaction. With the recent push by Facebook to make Credits a large portion of their business, it wouldn’t be surprising to see the two products integrated with each other, resulting in a 30 percent cut for Facebook. Have you seen the recent Deals promotions in the news feed? Would you want more deal offerings sent to your inbox?