Business Model Institute : Groupon Business Model vs. Val-Pak

For some, coupons are dead and are a relic of the older days. I’m a heavily Internet-connected late 30s tech-aware consumer and yet I still open my envelope of Val-Pak coupons. I look at each and every coupon and from time-to-time I keep a coupon or two.

This has me wonder if the Val-Pak business model can still survive in the age of Groupon? Are the business models of these seemingly different businesses really that different? Both companies want you to take them up on their offer and seek out the businesses they are effectively advertising and promoting.

Read Complete Blog Post

Bloomberg : Groupon Accused in Lawsuit of Altering Merchant Contracts in Sent E-Mails

Groupon corresponds with its merchant-clients by e-mail and transmits its merchant agreements in the body of e-mailed messages, according to the complaint by BidMyCrib, a website that allows contractors to bid on residential construction projects. The company later goes into those e-mails and alters the content, according to the complaint.

Groupon changed at least one section of the merchant agreement with BidMyCrib by adding a new sentence regarding voucher expiration dates to the previously agreed-upon language, according to the complaint.

Read complete article

Gizmodo: Google Could Kill Groupon If They Don’t Screw Up

Google has put themselves in a position where their multitude of platforms, especially Gmail and Android, their search powers, and the way Offers is designed to benefit both merchants and consumers give them a major advantage over the likes of Groupon and Living Social. We're talking: Better payment terms for deal providers; Better returns on vouchers; And better distribution through ads and Google's already immense portfolio of products and services.

Read Complete Article

Tippr’s Two Cents on Groupon’s IPO

Simply put, Groupon is spending a lot more than it takes in. While their financials are not public, we can guess from LivingSocial’s massive media presence that their financials are similar.  According to Groupon’s financials and our own experience with SEO, display ads, and an affiliate network, the cost of acquiring new customers is INCREASING.   So, the obvious questions are: Is there a tipping point?  Can any company find a way to make money in the daily deal business?

We believe YES.

Read complete post on Tippr's blog

Bloomberg: Groupon Files to Raise $750 Million in IPO After Coupon Site’s Sales Surge

As early as March, Groupon was in talks with bankers about an IPO that would value the company at as much as $25 billion, people familiar with the matter said at the time. Groupon is benefiting from demand for daily coupons, which provide discounts at local businesses like restaurants and nail salons.

“You need to have a war chest,” said Sandeep Aggarwal, an analyst with Caris & Co. in San Francisco. “You need to have that access to capital to maintain that level of growth.”

Read complete article on Bloomberg.com

Cat Lovers on Campus? 17 Things to Consider Before Launching A Daily Deals Site

In a few short years, Groupon slapped a buy button on a website, hired some sales people, and is now reportedly making $760 million annually with a multi-billion dollar valuation.

Easy, right?  I mean there are 600+ new group buy sites and new ones popping up every day.  Got a great idea for a daily deal site?  (My favorite thus far is the niche site at the cross section of Cat-Lovers on Campus)

Before you get too carried away and quit your job to set up shop in your garage, here’s 17 things to consider:

Read complete article

Bloomberg : Groupon Targets $176 Million of Sales During Its First Year in South Korea

Groupon Inc. said it’s targeting sales of 200 billion won ($176 million) in South Korea this year as it expands globally.

Groupon also aims to catch up with its biggest local competitor in attracting traffic to its Korean website in the next three to six months, Hwang Hee Seung, Groupon Korea’s chief executive officer, said in an interview in Seoul yesterday.

Read complete article

Aaron With, Editor In Chief, Groupon Inc at SXSW : Strange Business: Corporate Creativity That Doesn't Suck

Aaron With, Editor In Chief, Groupon Inc speaks at SXSW in Austin, Texas.

Click the link for streaming audio of Aaron's talk >> Strange Business: Corporate Creativity That Doesn't Suck

Mashable : Groupon’s Ambitious Plan to Change How & When We Eat With Its New Groupon Now App

The application, known as Groupon Now, is remarkably and elegantly simple, yet it’s a radical departure from Groupon’s current deal-a-day business model. When a user opens up the smartphone app, he or she will be presented with just two buttons: “I’m hungry” and “I’m bored.” Clicking either button will open up a list of time-specific daily deals, based on his or her location.

The familiar $10 coupons for $20 worth of food are still there, but they’re not one-time offers. Instead, businesses can choose when they want these deals to be available. Say a restaurant is incredibly busy on Saturdays but could use more business on Wednesdays. With Groupon Now, that business can fill its seats during slow business days using time-specific deals.

Read complete article

Groupon : Social Media Tips for Small Businesses

Group buy industry leader Groupon hosts a webinar on how small businesses can effectively utilize social media.

Social Media Tips for Small Businesses from Groupon on Vimeo.