There was plenty of skepticism in 2011 about the daily deals site, and it looks like that skepticism was warranted, with nearly 800 daily deal sites going bust during the year.
Daily Deal Media put out a press release that 798 daily deal sites were either acquired or went bust in 2011, as the ease of creating a site and the "moat" (the ease of which a competitor can replicate your business model) plunged at an alarming rate.
According to the press release, Asia saw the biggest change, with 1,348 sites going bust in 2011. Latin America and Europe actually saw increases in daily deal sites, with 324 and 235 new sites popping up, respectively. Overall, daily deal sites fell 7.61% in the last six months of 2011.
The two biggest companies in this space are Groupon, and Living Social, and many have been skeptical of these companies, primarily for these reasons. If these companies can come and go seemingly overnight, then what stops that happening from these two companies? There has also been speculation that a strengthening economy could hurt Groupon, as consumers may be more willing to pay full prices for items, and be less careful about watching what they spend.
Ultimately, companies like Groupon and Living Social will most likely survive, due in large part to Groupon being a public company, and Living Social having the backing of Amazon, but other sites are likely to fall by the way-side in 2012, perhaps at an even more alarming rate than 2011.