Category Archives: daily deals

Like many Groupons, Groupon is no bargain — even at 50% off

Groupon finally announced the details of its much awaited IPO. The company seeks a valuation that is between 1/3 and 1/2 of what was rumored when its first S-1 was published in June. Although the numbers are on the surface … Continue reading

Posted in daily deals, groupon | 4 Comments

Groupon and LivingSocial get half off deals they won’t like: their traffic

Traffic to leading daily deal sites Groupon and LivingSocial has fallen often a cliff in the last few months, according to data from Compete. Since June, unique visitors to Groupon have fallen more than 50% from 33.7 million to 15.8 … Continue reading

Posted in daily deals, groupon, livingsocial | 3 Comments

Why I agree 100% with Groupon on obfuscating its Deal Counter numbers

Groupon announced on its blog yesterday that it’s going to obfuscate the numbers shown in its Deal Counter, which shows how many of each deal sold. It’s the right move for Groupon. I noticed this in action several weeks ago … Continue reading

Posted in daily deals, groupon, livingsocial | 2 Comments

Groupon, IPOs and incentives

When I first started writing about Groupon more than four months ago, my friend Semil asked me “Why are you the only one saying these things?” I explained that it call came down to incentives. Consider the various people involved … Continue reading

Posted in daily deals, groupon | 3 Comments

What every small business should do. Today.

I’ve written quite a bit about how bad a deal running Groupons is for many businesses, including the extremely lopsided merchant agreement and the potential for Groupon to damage businesses in the long term by destroying Yelp ratings. It occurred … Continue reading

Posted in daily deals, groupon | 7 Comments

Groupon’s cost of revenue is soaring

The third amendment to Groupon’s S-1 shows significant changes. Although the prospectus is cleaner and better reflects the company’s financial position, it brings to light more bad news about an already troubled offering. The most significant new issue I see … Continue reading

Posted in daily deals, groupon | 10 Comments

Google Offers merchant agreement

Note: Page 1 is the term sheet. The only substantive item on the term sheet is the revenue share. In this case, the merchant received between 50 and 60 percent. GOOGLE PREPAID OFFERS BETA PROGRAM ADDENDUM Google Prepaid Offers Beta … Continue reading

Posted in daily deals, google | 4 Comments

The economics of LivingSocial/Whole Foods-like deals

As expected, today’s LivingSocial offer of $20 Whole Foods gift card vouchers sold out at 1 million vouchers sold. This is a great marketing move that created buzz around the Internet, for a while was the top term on U.S. … Continue reading

Posted in daily deals, groupon, livingsocial | 10 Comments

Groupon deal performance: down and to the right

This is another graph that caught my eye from the study posted by Harvard and Boston University researchers: This bears out what I’ve been hearing from Groupon insiders. In the latest amendment to the S-1, Groupon also reported that its … Continue reading

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Why running a Groupon can destroy your Yelp ratings

A recent study by researchers at Harvard and Boston University confirm statistically something that I’ve long suspected: Running a Groupon can destroy your Yelp ratings. I generally recommend that restaurants and service businesses avoid running Groupons because the short-term economics … Continue reading

Posted in daily deals, groupon | 8 Comments