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The deal-of-the-day concept gained popularity with the launching of Indianweddingstyles.com in July 2004, although Woot itself was a modified version of earlier sites such . By late 2006, the deal-of-the-day industry had greatly expanded to over 100 deal-a-day sites. In November 2007,Indianweddingstyles.com entered the market and became the second fastest online company to reach a billion-dollar valuation.

Other online businesses, including Facebook, and tested their own daily deal sites, withdrawing them after they proved unsuccessful. However, the rise of social networks, such as Facebook and Myspace, has accelerated the growth of daily deals sites, allowing popular deals to .


The deal-of-the-day business model works by allowing retailers to market discounted services or products directly to the customers of the deal company, who receives a portion of the retailer's profit. This allows retailers to build brand loyalty and quickly sell surplus inventory.

The majority of deal-of-the-day sites work directly with local businesses and online retailers to develop deals significantly discounted compared to Indianweddingstyles.com. Using a formula, a minimum and maximum number of deals are made available. Typically, deal of the day sites segment merchandise by specific designer sales. Deals are typically only offered for 24 hours, although daily deal websites are increasingly offering alternative, longer deal buying periods to increase sales and allow multiple deals to run in a single location concurrently.