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Business & Tech

Move Over Groupon; Facebook Likes Deals, Too

Facebook Deals, launching in five pilot cities, allows users to buy, like and share deals with friends.

If you didn’t already have enough excuses to log onto Facebook, you have another reason. Yesterday, the social network launched “Facebook Deals” in five pilot cities, including Atlanta, Austin, Dallas, San Diego and San Francisco. The program is similar to Groupon and Living Social and essentially promotes special offerings where users can purchase deals and redeem them offline. According to Web Success Team, 11 companies have signed on as partners for the trial in the pilot cities.

What’s great is that Facebook users can buy the deal, but they can also “like” it and broadcast it to their friends through the news feed or “share” it with specific individuals or groups through private invitations. Another benefit of Facebook Deals is that it allows users to purchase gifts for their friends—something that competing sites don’t offer.

Some of the deals available yesterday in San Diego included:

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  • Two-hour water sport rental at Carlsbad Lagoon ($23, a $50 value).
  • Specialty and traditional sushi at Onos Café ($15, a $30 value).
  • Glee Live tickets for two at Valley View Casino Center on Sunday, May 29 ($78, a $132 value).
  • Two-hour electric bike rental at Ivan Stewart's Bike Center ($20, a $50 value).
  • Kids art and technology classes at The Cove in Encinitas ($25, a $85 value).
  • Four dance classes in Oceanside at Ariel's Dance Studio ($19, a $48 value).
  • Four-hour fashion tour with Chic Fashion Tours ($37, a $75 value).

Facebook Deals is the social network's second deal program. In November 2010, the company announced “Check-In Deals” that allows mobile users to check in using Facebook Places. In return, those individuals are rewarded with an offer of sorts. For example, Gap gave away a free pair of jeans to the first 10,000 people to check in at Gap on Nov. 5. Local restaurants such as Jimmy’s Brick Pit BBQ and Poway Sushi Lounge offer patrons a special offer for checking in.

For companies considering engaging in Facebook Deals, there are no upfront costs, but the network takes a portion of the proceeds if a deal is purchased. In addition, businesses have more control over the deal and can set caps on the number of vouchers purchased. If your business is interested in promoting a deal, your company must first have a Facebook Page before you’re allowed to participate.

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I’ve already noticed a lot of people actively engaging in conversation and commenting on the deals currently available. In fact, many of my friends have signed up to receive Facebook Deals (my news feed says so). Facebook has more than 600 million people, so I think there’s a lot of potential since so many people are already spending a significant amount of time on this platform. I’m sure we’ll continue to see more activity whether people are posting it on their profiles or sharing it with others in their network.

If all goes well, the network is looking to launch additional Facebook Deals in more U.S. cities later this year.

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