Social-media developer LivingSocial, the company behind Facebook applications Visual Bookshelf and its self-titled app on the social-networking site, wants to offer its New York fans a deal.

The company launched LivingSocial Deals Monday, a group couponing program offering New York-based LivingSocial fans an average of over 50% off at local restaurants, spas, sporting events, hotels and more.

One offer will be announced every morning through Facebook, Twitter and email. As soon as the sign-up quota for each offer is met, coupons are distributed at midnight of that day. The offered deals are usually good for a minimum of three months. The first offer is for 60% off at Brio, an Italian restaurant.

LivingSocial co-founder and CEO Tim O'Shaughnessy described the business model for LivingSocial Deals:

Merchants don't pay us anything. We'll talk with them and say, "Hey, we think this is a deal that would work well, and this is how we think you should price it. What's the minimum number you want to sell?" If we hit the minimum, the user is going through us, purchasing via credit card. We'll cut the vendor a check and take a commission off what they paid. The commission only gets paid if they're selling things.

LivingSocial ran a one-month trial in Washington, D.C., and it said LivingSocial Deals sold thousands of deals on behalf of merchants worth hundreds of thousands of dollars. For example, the National Museum of Crime & Punishment offered half-price tickets that are good through December, and O'Shaughnessy said, "We did a deal where you could make and design your own label for 30 bottles of wine."

The company plans to roll the program out in other cities throughout the country over the next few months.

With all of the pop-up ads and other offers springing up all over the Internet, when O'Shaughnessy was asked how LivingSocial Deals can stand out and differentiate itself from the pack, he replied:

Something we continually worry about is user trust. We do have a brand that's been built up. If you check out the actual product, there are deals that have been done before. It doesn't look like it's too good to be true. We do have a good level of user trust.

It was crazy when LivingSocial took off. We just really tapped into a segment of people who really liked to share what their hopes and opinions were.

On the launch of LivingSocial Deals in New York, he said:

The pilot program has been really popular in Washington, D.C, so we're excited about launching in New York City and, eventually, nationwide. Who doesn't want a killer deal on luxury spa treatments or tickets to a game? That's why people are spreading the word to friends on Facebook and Twitter, so the program builds incredible buzz for our merchant partners. Additionally, our merchants get great branding opportunities and reach hundreds of thousands of local consumers by simply participating in the program.

Bharet Malhotra, co-owner of Co Co. Sala, a chocolate lounge in Washington, D.C., said:

By partnering with LivingSocial, awareness of Co Co. Sala reached thousands of customers who might not otherwise have ever stepped through our doors, because they bridge the gap between online and offline interests perfectly. What's more, the LivingSocial team made me feel like we were true partners, fully invested in helping me grow my business.