The Real Costs of Groupon

via www.socialmediaexaminer.com

The link above is to a great article on the costs and considerations of Groupon.

– For every deal, Groupon gets 30% - 60% of your already drastically reduced price.
– Small businesses have actually been ruined by their Groupon deals.
– Groupon users are always hunting for a deal. After they've used your coupon they're likely to just move on to the next.
– Groupon is not a silver bullet. It may expand your traffic for a few months, but until you do the math you won't know if it's expanding your profits.

And most importantly, if you're going to jump on Groupon, be sure you have a plan in place to turn these one-time discount seekers into return, full-price customers.