Here's my take: you want to do something like this for software (indeed, any business) only if you have a way to follow up and tap that customer for future prom

Here's my take: you want to do something like this for software (indeed, any business) only if you have a way to follow up and tap that customer for future promotions. Do you have some additional software you could pitch him after he's made the purchase? Are you getting his email for your autoresponder? These are important questions to ask. Otherwise you are just devaluing your own product by selling it at such a steep drop. Say, if you were running a small bakery, then you might be willing to sell your wares for less because of the word of mouth publicity that a few extra visitors from beyond your usual customer base could buy. If you are selling software, you want to do it if you have different stuff to sell and want to use a daily deal as a gateway to lure in customers and pitch them other products after the sale has been made. Say, you are Adobe and you want to sell Photoshop. You do so by promoting Illustrator at a steep discount, then telling them about Photoshop at the checkout stage or emailing the customers about it. Then, it can work out as a good deal. Otherwise, not a very good idea.