If you haven’t heard of the term, “Groupon” yet, it’s time for you to get on board with over already 5 million existing subscribers! Groupon is one of the best ideas yet. Groupon.com offers deals in major cities as well as increasingly smaller cities across the United States. On top of the U.S., the company has also expanded to other countries. Groupon works in the sense that if enough people take advantage of these deals through purchasing the offers (and a certain quota of purchases is reached) they will receive a phenomenal discount on a product or service.
The amazing part to this concept is that everybody wins. The company that is offering the “deal” for the day typically breaks-even financially, and in turn receives an enormous amount of exposure from clientele that normally wouldn’t be specifically searching for their product or service. On the opposite end, the resulting revenue is shared (typically 50%) with Groupon to cash in on. This genius idea keeps the consumer, vendor, and listing company (i.e. Groupon.com) happy with the end result.
Unlike so many other dot-com sites, Groupon is a legitimate business located in a warehouse in Chicago of 85,000 square feet. The company has exceeded $500 million in set revenue for 2010 and is continually expanding now in 2011. They have already hit 88 U.S. cities and 22 countries as of August of 2010. Groupon.com’s only down fault is that they are losing “ground” because more and more competitor sites are springing up online with the same business plan.
Please check out the Forbes.com article below as well as the Groupon video. Sign up today at Groupon.com!
– Jerad Larkin
Filed under: Internet Marketing