Launched in November, Drop Down Deals Already at Profitability
The company has developed a clever approach to help online shoppers quickly identify and apply valid discount coupons to their purchases. In an interview a few weeks ago, CEO Aaron Mendes told me that many coupon codes available may not be valid on websites like RetailMeNot.com, which attracted some 90 million unique visitors over the past year and is expected to generate $30 million in revenues this year, according to ZD Net.
“The coupons change constantly,” Mendes told me. “On any given day, there may be no coupons available for a specific site. Most coupons don’t last more than a month or so anyway. They expire and get replaced.”
Mendes says Drop Down Deals has solved this problem by developing a free plug-in that remains hidden until a user visits an online shopping site for which coupons or deals are available. Then the application opens a drop-down window on the right-hand side of the screen that shows the coupons and coupon codes available for that retailing site.
“We do it by a domain browser that automatically detects what shopping site you’re on and then shows the coupons for that site,” Mendes said. The company says the service works at more than five thousand retailers, including Wal-Mart, Target, Dell, Kohl’s, Hewlett-Packard, Travelocity, Expedia, Orbitz, Patagonia, and Ralph Lauren—and according to Mendes, “We only display coupons that are valid.”
Mendes says Drop Down Deals also enables users to apply the coupons immediately; it’s not necessary to got to a dedicated coupon site or exit the retailer’s page. “It’s a very simple tool that doesn’t bug users unless they’re shopping,” he said.
With today’s launch of a Drop Down Deals coupon site, consumers will have the choice of browsing through tens of thousands of coupons across thousands of retail sites, using a website that shows more than 150 shopping categories. When used with the Drop Down Deals free Web browser plug-in, the company says consumers no longer need to search for coupons while they shop. To view available coupons, consumers simply click on a desired category, which pulls up a list of retailers and correlating coupons. To use a coupon, users click on a link associated with the category, which takes them directly to the retailer’s site for immediate use.
The company launched its browser application in beta form in September, and Mendes said it’s been easy to acquire users from around the world so far. Drop Down Deals quickly gained scale because “we had a lot of partners,” the browser plug-in is free, and it’s often bundled with other software. Mendes said more than 3 million Drop Down Deals plug-ins have been downloaded in the past month or two.
The company, which was funded by a private investment group called Sambreel Holdings, and already is profitable. Mendes told me, “We get an affiliate’s commission from the store where they bought the product,” but he declined to provide specific revenue numbers or to say how much capital the company raised.
The pace of the company’s progress is just one example of how Drop Down Deals has been moving at Internet speed. Mendes told me he was recruited to join the startup just three months ago, after working through this summer as the chief marketing officer at Carlsbad, CA-based Wellness.com, a website for sharing information about health and happiness. He estimates the company now has close to 30 employees, and adds, “We’re hiring more people every week.”
Trending on Xconomy
By posting a comment, you agree to our terms and conditions.