Jul 12, 2011 15:21 GMT  ·  By

Daily deal sites are the hottest thing on the web right now. Everyone has heard of Groupon, but there are literally hundreds of clones. Last year though, location-based services, especially those that offered check-ins were all the rage.

So what's a location-based service, like Foursquare, to do in this day and age? Start offering daily deals, location-based, daily deals to be more specific, of course.

Foursquare has partnered with a number of daily deal sites to send special offers to its users in several countries. The deal could be the big revenue breakthrough the 10 million users-strong service has been waiting for.

Foursquare has already started showing this type of deals to its users. The deals come from LivingSocial, Gilt City, Zozi, AT&T Interactive and BuyWithMe.

Foursquare users in US, UK, Ireland, Canada, Australia and New Zealand will start seeing the new, local daily deals on their phones in the Explore tab of the Foursquare apps.

Previously, offers from local businesses would be displayed in that app. This was part of Foursquare's attempt at generating some revenue, but that effort didn't pan out too great.

Now, Foursquare will source daily deals from its partners and will then display the ones that make the most sense to its users. It will be using users' check-in history as well as what their friends visit to determine the best places to showcase.

If it manages to get people interested in the offer, its 10 million user base may be able to drive a lot of this coupon sales, especially since they will be more targeted and 'in-your-face' than the daily emails users normally get.

Foursquare is also said to be working on a deal with Groupon to get deals from the giant site as well. Groupon may be a tougher partner to get, the company is working on doing a type of location based deals itself.