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Re: Groupon critical mass
Posted by Bill Homer (more from Bill Homer) on Sun, 20 May 2012 14:28:06
In Reply to: Groupon vs Facebook - critical mass, dmz789qqq, Sun, 20 May 2012 12:55:03
Vendors will not run Groupon deals if there are not enough potential clients in the targeted email offers to make the effort worthwhile. Practically all Groupon deals are money losers for the vendors (ours certainly were); the upside to a vendor is in the advertising value a featured Groupon deal provides, and the hope that you can convert the bad deal into a good deal through upselling. Overall, we seem to have come out OK on our deals, a result of bringing people in, treating them well, and getting them interested in buying more goods and services.

Without Groupon's critial mass of potential customers, vendors aren't very interested. Without vendors willing to run deals, Groupon (or its competition) can't exist.

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