New track for daily deals duo
Internet entrepreneurs Jeremy Same (left), Mark Hoenig and Adam Schwab. Photo: Supplied
It's been a busy couple of weeks for the 30-something entrepreneurs behind daily deals site deals.com.au, with the launch of two new businesses in food and music.
Melbourne-based Jeremy Same and Adam Schwab, an ex-ANZ banker and a one-time corporate lawyer, have been starting businesses for close to a decade now: from accommodation services provider Living Corporate Apartments in 2004, to Deals.com.au (formerly known as Zoupon) in 2010.
The pair now has two new businesses - tuneday.com and mytable.com.au - to add to their flagship brand deals.com.au, which has about 30 employees and is said to be on track for $25 million in annual sales.
"Perfect timing, as you can imagine," Same laughed. "They've both been about a year in the making, and they're both launching at exactly the same time."
Tuneday.com, co-owned by managing director and musician Mark Hoenig, features music and videos from emerging artists that can be downloaded free for a limited time. The first featured artist was 13-year-old US singing star Maddi Jane, whose YouTube video received more than 200,000 views since the launch of Tuneday late last week.
Targeted at the tech-savvy and music-loving teen and 20-something market, the site will rely extensively on social media to spread the word about up-and-coming performers.
The incentive for emerging artists is royalties for downloads and the potential for a large audience. "For 24 hours, there'll be a massive focus on them or on their music," Same said."And this massive audience, if they like their music enough, can go to their concerts and buy their merchandise. It derisks it for them. And it's also about getting exposure on Facebook, YouTube visits, Twitter feeds."
Same said potential revenue streams for TuneDay were advertising, premium offerings and concert ticketing, and once established, they would likely seek seed funding or a strategic partner.
The unveiling follows the recent Australian launch of European music service Spotify, which allows listeners to listen to music free of charge, so long as they listen to advertisements.
But Hoenig said TuneDay was a different beast. "There are other sites that offer songs a day, but they don't generally do newsworthy features. The artists that we feature will have a story to them, so it'll be quite engaging for the user."
Schwab and Same's other new business is mytable.com.au, a take-way ordering site that allows people to search for restaurants in their neighbourhood, read reviews, and place orders for home delivery or pick-up. Around 1000 restaurants have signed up across Australia, Same said.
Meanwhile the group buying market - including the pair's website Deals.com.au - is a rare bright spot on the retail landscape.
Research by technology analyst firm Telsyte found that $690 million worth of goods and services were purchased through group buying over the past two years. Sales for the March quarter rose 72 per cent to $123.5 million.
Telsyte senior research manager Sam Yip said group buying sites were "sitting on a gold mine of customer and business information amassed from the 14.5 million vouchers sold in the past 24 months".