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The Associated Press July 8, 2011, 5:52PM ET

Summary Box: LevelUp challenges Groupon's model

WHAT IT IS: Unlike deal sites such as Groupon, newcomer LevelUp offers users a series of three deals, each better than the one before. For example, the first deal might be an offer for $30 worth of food at a local restaurant for $15, while the second could offer $30 worth of food for $10, and the third might be $30 worth of food for $5.

HOW IT WORKS: A user must buy the first deal to be eligible to purchase the second, and both the first and second to get the third.

WHY THEY DO IT: LevelUp thinks that offering increasingly good deals will lead to more repeat customers for local businesses.

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