Have you ever done it?
I'm wondering about the benefits to my business...
i would be very apprehensive personally because I have seen custom bakers get ripped to shreds on Yelp when a GroupOn is sold and then, because fulfillment has to be based on custom availability, the customer can't get the product when they want. I saw reviews for one cake maker who looks to have done a Cupcake deal and was getting reamed for not answering the phone and having to leave a message, and for not having cupcakes ready to go, and for not even having a store front (all things were terms spelled out, but small print isn't read by everyone). If I had a store front and a stocked case, I'd maybe do a promotion, but I would hate for it to be oversold and for me to underperform.
I personally think that there are better ways to achieve name recognition with less risk.
Is living social the same as Amazon Local? I get emails from both and they seem to be running the same promotions so I think they're linked. No idea about either one. I got asked to do a "Sweet Jack" which promotes the discount on radio stations. It isn't as big as Groupon or Living Social but the damn jingle gets stuck in my head.