Foursquare will be partnering with daily deals companies very soon as part of its features.

Dennis Crowley, CEO and co-founder of Foursquare, announced that the service will be starting this week. According to Crowley, Foursquare has entered into several deals with LivingSocial, US telephone company AT&T and Gilt Groupe, so that it can distribute coupons from third-party companies. The networking site is also making a similar deal with coupon giant Groupon for the same purpose of augmenting its revenue.

Foursquare users will be able to get coupons in exchange for visiting specific businesses. With this, Foursquare will also be taking a cut on the revenue of the deals that it is advertising. In an interview with Wall Street Journal, Crowley added that the people at Foursquare are still trying to see how users of the mobile application will react to this new marketing strategy.

Foursquare is a location-based networking service that is ideal for mobile devices. The networking site has just recently reached ten million users. It has also just recently reached a valuation of $600 million.

The networking site is currently a partner to almost 500,000 merchants who are using the service as a medium for marketing. These merchants range from small-time businesses to medium-sized businesses. Through Foursquare, partner merchants are able to advertise specials, freebies and discounts to service users who visit their businesses. Foursquare does not earn from this service and the merchants also do not pay Foursquare to advertise its promotions. Perhaps it is for this reason that the networking service is not earning the amount of money that it should be earning.