how does this happy houred application makes money?

[Gator]

Google happy houred. Its for drinks/meals specials. Users can submit any bar that has some special. App is free, how does it make money?

My idea was to change thing a bit - instead of users submitting deals I would get bars submitting their deals. And charge them for that. Good idea? Bad idea? Compared to happy houred monetization plan.
thanks

[Will]

I saw from one of the pics, it runs small banner ads at the bottom of the app. This will create add revenue and they profit depending on how many people use the app and create page impressions on the ads.

Charging the bar owners to advertise would only work after you got a large following of app users, so in most cases the best option is to keep it free for bars and users to begin, and maybe look at charging the bars once/if you get popular.

Hope that helps.