"We did three different LivingSocial deals last fall, and at the end of the day, it did not pencil out enough for us to continue," says Neblett, who started the 55-employee, $15 million Spokane (Wash.) company in 2008.

He's one of a swell of small business owners souring on daily deals. An October survey that small business listing service Manta conducted of 1,087 of its members showed that 82 percent do not intend to run daily deal promotions this year. Only 3 percent said such campaigns have garnered them repeat business; 3 percent said they lost money on daily deal coupons.

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