Reply to post: Re: Terrible business model

Today's Groupon offer to its sacked employees: 100% off your salary

Roq D. Kasba

Re: Terrible business model

Indeed, it's parasitic. To advertise with them, you have to offer at least 50% discount, then they take 50% of the voucher price, so you can only offer goods or services artificially inflated or lose money on each customer.

They pretend you are introduced to new customers, but by definition, 'customers' aren't big spenders and have no loyalty, they follow the cheap coupons. It's easy to bankrupt yourself with a zealous voucher campaign, or if they oversell your vouchers.

A lot of 'deals' are mayfly companies, set up days before specifically to flog a container load of cheap foam mattresses or whatever, then offering no follow-up service. Cheap watches, other brand-alike stuff, are all ideal when you can fabricate an entirely unreasonable and false recommended price to discount. Anyone offering 90% discount on a designer watch (95% after platform fees) simply has to be making up numbers. These platforms encourage that in order to do 'deals', no matter how terrible those deals really are.

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