Groupon cons businesses into signing up with them by pointing out that it’s risk-free advertising for the business. Oddly, I got a call from yet another one yesterday as well. There are Groupon clones popping up all over the place these days Living Social is one that called me several months ago. This can be a real attractive deal for people who want to save money. To feature a merchant offer, the merchant must discount its products or services by at least 50% off regular price. Groupon makes its money by taking a cut of the amount it collects for the merchant: 30 to 60%. They then take the vouchers to the merchant and get the products or services that were in the special offer. The people prepay for whatever it is they’re buying and get vouchers to redeem.
The idea is that they get a group of people to buy into a special discount offer. Groupon, in case you don’t know, is an up-and-coming business that has combined social networking with discounts. Yesterday, he reached me at my desk while I was working on the finishing touches for my latest book. He’d been trying to reach me for about a week and had left two voicemail messages, which I ignored. Yesterday, I got a phone call from a Groupon representative.
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