Here are a collection of reads that we find helpful in thinking about the subject.
- Should I Use Groupon? Don’t Be Tempted By The Dark Side
- Quora: What do small business owners think of Groupon?
- Quora: Is Groupon a successful option for small businesses?
- Inc – 10 Pros and Cons of Using Groupon
- NY Times Business Blog – Doing the Math on a Groupon Deal
- /r/smallbusiness – GroupOn – Does it actually help businesses grow? – consensus seems to be that it only works for businesses that have a high markup, and that you really have to look at it as a generalized marketing expense.
- /r/smallbusiness – All my customers are from groupon
The general consensus seems to be that…
- Groupon users are mostly bargain hunters who don’t look to signup
- Some retailers have seen success with Groupon, but it seems like failures are far more common
So tread carefully!
You want to make sure you go into it with your eyes open, and not just end up giving away your products and services without getting anything in return.
Make sure you have a plan for getting more long-term value out of the customers that you get (since you’re effectively ‘paying extra’ for them).