WagJag in Canada has done this - they have a partnership with Metroland it seems, which owns The Toronto Star among a TON of free papers in smaller areas. Now I don't know this for sure but I'm 99% certain that they use their personal sales agents for the newspapers (who already have contacts with the local business) and use them to sell the group buying. I'm sure they also get advertising credits for the $$ they have held back from their deals too.
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WagJag in Canada has done this - they have a partnership with Metroland it seems, which owns The Toronto Star among a TON of free papers in smaller areas. Now I don't know this for sure but I'm 99% certain that they use their personal sales agents for the newspapers (who already have contacts with the local business) and use them to sell the group buying. I'm sure they also get advertising credits for the $$ they have held back from their deals too.