Businesses.com.au has recruited Managing Director of Cudo and Deals.com.au Adam Schwab to share his insight about dealing with daily deals sites with readers.

For the uninitiated, deal sites are ones like Groupon, LivingSocial, Spreets, Cudo and Scoopon. These sites sell products and services from another business to site visitors and their database of subscribers that they have created. The deal sites advertise their clients’ services or products and collect money for vouchers for buyers to present to a merchant. For products, the deal sites send cash and the address to send the goods to the business that pays a commission for the sales service.

They basically act as a middleman between business and consumer, but they can draw in a lot of business so can be worth it for businesses to deal with.

But merely putting your service on these sites isn’t always a good idea, as businesses.com.au shares the horror story of one salon owner who advertised on one of the daily deal sites only to find she was unable to handle the influx of business it brought her.

With avoiding that kind of pitfall in mind, businesses.com.au invited Schwab to offer a bit of a tutorial on using the deals sites and what to expect.

You can find Schwab’s insights into Australia’s daily deals industry here.