Daily-deals companies are getting hosed lately, but that doesn’t mean that local businesses have stopped needing to run promotions that get customers in the door.To adapt, Signpost has changed from offering its own deals to running a dashboard that helps small businesses manage all their marketing promotions in one place. As a result, its business is starting to take off.
The company tells us it has experienced 30% month-over-month growth this year. In the spring, it secured $3.75 million in fresh financing, and it’s now projecting that its total revenues, on an annualized basis, will double from a $5 million rate in December to a $10 million rate by March.
The startup, which launched in late 2010, has kept 90% of the 6,000-plus small-business clients it’s signed up so far. They typically pay $199 a month to use its service. In addition to helping them track campaigns, it pushes their promotions to 1,200 partnering sites, including giants like Google and eBay. (eBay partnered with Signpost in the fall to compete with Groupon directly.)
As a result of switching from courting fickle, discount-seeking consumers to signing up reliable small-business customers, Signpost has a predictable revenue model and its business has been steadily on the rise.
It may be a far smaller business than Groupon, which for all its flaws has become a giant, global operation practically overnight. But Signpost shows that there’s more than one angle in the daily-deals market.
Here’s a look at its revenue growth—note that these are annualized figures. Divide by 12 for the monthly actual numbers. (Signpost has excluded non-subscription revenues here, because it’s focusing on the merchant subscription model going forward.)
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