Groupon going public, launching IPO. Fastest growing company in Internet History!

29 replies
Groupon Files for IPO - WSJ.com

I must say, I am blown away at how much money this company rakes in and the fact they are the Fastest Growing company in the History of the Internet

Groupon brings in $54 Million per WEEK!


They also have 1 Million people per DAY opting in to their email list, maybe they could do a WSO?
#company #fastest #groupon #growning #history #internet #ipo #launching #public
  • Profile picture of the author Robert M Gouge
    Amazing what one simple idea can become. Solve a problem and people will thank you with millions of dollars.
    {{ DiscussionBoard.errors[3998573].message }}
  • Profile picture of the author italiandude
    That's crazy I knew groupon was big but I didn't think it was ranking in $54 million dollars a week.
    {{ DiscussionBoard.errors[3998587].message }}
    • Profile picture of the author Michael Shook
      I don't know about a WSO, but this is certainly the time for products that can save people money in some way. I heard on the news the other day that home prices are still in the tank in the US and not getting any better anytime soon.

      I know my sites that offer money saving tips and ideas are getting traffic like crazy. I would also imagine that sites that give help on resumes and finding jobs wold probably be doing really well also.
      Signature


      {{ DiscussionBoard.errors[3998776].message }}
      • Profile picture of the author High Horsepower
        Originally Posted by JMichaelZ View Post

        I don't know about a WSO,
        I don't think Groupon will be coming here to do a WSO, lol.
        Signature
        Never give in--never, never, never, never, in nothing great or small, large or petty, never give in except to convictions of honor and good sense. Never yield to force; never yield to the apparently overwhelming might of the enemy. Sir Winston Churchill, Speech, 1941, Harrow School

        {{ DiscussionBoard.errors[3998812].message }}
        • Profile picture of the author High Horsepower
          I'm watching CNBC now and the analyst are saying Groupon is a buy. They said the company that gets their 1st gets 10x the sales, all the clones will be eating Groupons crumbs.

          They also said Groupon is rolling out a huge Mobile Marketing platform.
          Signature
          Never give in--never, never, never, never, in nothing great or small, large or petty, never give in except to convictions of honor and good sense. Never yield to force; never yield to the apparently overwhelming might of the enemy. Sir Winston Churchill, Speech, 1941, Harrow School

          {{ DiscussionBoard.errors[3998831].message }}
          • Profile picture of the author Michael Shook
            Originally Posted by High Horsepower View Post

            I'm watching CNBC now and the analyst are saying Groupon is a buy. They said the company that gets their 1st gets 10x the sales, all the clones will be eating Groupons crumbs.

            They also said Groupon is rolling out a huge Mobile Marketing platform.
            Time to go short, then. If CNBC is saying it's a buy, the money has already been made. Give it a day or two, outside guess a week, wait till the frenzy goes away, sell or exercise your options for a profit and buy next week at a normal price level.
            Signature


            {{ DiscussionBoard.errors[3998857].message }}
        • Profile picture of the author Michael Shook
          Originally Posted by High Horsepower View Post

          I don't think Groupon will be coming here to do a WSO, lol.

          Too bad for them.

          That gives somebody else time to get their ebook together.
          Signature


          {{ DiscussionBoard.errors[3998867].message }}
          • Profile picture of the author High Horsepower
            Originally Posted by JMichaelZ View Post

            Too bad for them.

            That gives somebody else time to get their ebook together.
            So what's the title of your WSO?

            How to sign up 1 Million subscribers per day!
            Signature
            Never give in--never, never, never, never, in nothing great or small, large or petty, never give in except to convictions of honor and good sense. Never yield to force; never yield to the apparently overwhelming might of the enemy. Sir Winston Churchill, Speech, 1941, Harrow School

            {{ DiscussionBoard.errors[3998934].message }}
            • Profile picture of the author Michael Shook
              Originally Posted by High Horsepower View Post

              So what's the title of your WSO?

              How to sign up 1 Million subscribers per day!

              Sounds pretty promising.

              How to get a million subscribers a day?

              Step 1: Buy Groupon
              Step 2: Keep on doing the same thing.
              Step 2: Hmm, I guess there isn't a step 3.

              Tip of the hat to Steve Martin.
              Signature


              {{ DiscussionBoard.errors[3999135].message }}
    • Profile picture of the author celente
      Originally Posted by italiandude View Post

      That's crazy I knew groupon was big but I didn't think it was ranking in $54 million dollars a week.
      i did not know that WHOA! holey moley!
      {{ DiscussionBoard.errors[4007231].message }}
      • Profile picture of the author DRO
        Google is also launching a groupon clone (google offers), knowing its potential. They also tried to buyout groupon for 5-6 billion but was rejected. Was scratching my head at it

        So if they are making 54 million a week, equals to alittle more than 2.8 billion a year. The 5.x billion buyout wasnt exactly that enticing as I thought.
        {{ DiscussionBoard.errors[4007389].message }}
  • They had a good idea, though I'm not impressed with what they do... who cares what I think, the general public is on board for now.

    But something they also did that sets them apart... they got a lot of VC and spent like mad on paid advertising... problem is they are hemorrhaging money not earning profit.

    UPDATE: Groupon's river of red ink is even deeper. Groupon filed for its IPO on Thursday, revealing that it lost $413 million in 2010 and lost almost $114 million in the first quarter of 2011.

    Revenue means nothing with no profit.
    {{ DiscussionBoard.errors[3999014].message }}
  • Profile picture of the author Mike Hlatky
    Its full-year revenue of $713.3 million for 2010 nearly compares with the $644.7 million it reported just for the first quarter of 2011.
    A buy?

    I think so lol
    {{ DiscussionBoard.errors[3999056].message }}
  • Profile picture of the author d0rhk
    Whenever a site like groupon or it's many clones are involved, the one party who wins is the groupon site.

    There have been many posts/websites/blog posts from business owners and customers of people who use groupon.

    From the company's perspective: Groupon wants you to offer a great deal to the consumer, so you offer your widget at 50% off. Then, groupon wants to take 40-60% of the remaining money. So.. Lets say your widget is normally priced at $20, you'll make $5 (at 50% commission from groupon).

    From the consumer's perspective: Great! Massages at 60% off. You order.. go to setup your appointment and find out you need to wait 9 weeks because of the amount of orders. Also, other times people find that because the business is offering something for so cheap, they cant really get the customer service or time/attention they usually get for paying full price. This usually irritates the customer, who leaves with a bad impression of the business.

    I'm sure it isnt all like this, but there have been a ton of bad things to say about groupon from many businesses who have tried it out.
    {{ DiscussionBoard.errors[3999057].message }}
  • I love Groupon!! I look every morning to see what the special of the day is. That is some crazy, insane amount of money though!! 54 million a week!!
    {{ DiscussionBoard.errors[3999257].message }}
    • Profile picture of the author High Horsepower
      Originally Posted by miriamhigg View Post

      I love Groupon!! I look every morning to see what the special of the day is. That is some crazy, insane amount of money though!! 54 million a week!!
      $54 Million per week is actually on the low side. That was the average for the first 13 weeks of 2011. According to an analyst they are now doing close to 75 Million per week
      Signature
      Never give in--never, never, never, never, in nothing great or small, large or petty, never give in except to convictions of honor and good sense. Never yield to force; never yield to the apparently overwhelming might of the enemy. Sir Winston Churchill, Speech, 1941, Harrow School

      {{ DiscussionBoard.errors[3999848].message }}
  • Profile picture of the author mediaspree
    I saw an interview once with the Founder, where he basically said "we seek to fill every empty seat, in every single restaurant, in every single city." You can see the $$$$$ from that statement alone.
    {{ DiscussionBoard.errors[3999814].message }}
    • Profile picture of the author Kay King
      From the company's perspective: Groupon wants you to offer a great deal to the consumer, so you offer your widget at 50% off. Then, groupon wants to take 40-60% of the remaining money. So.. Lets say your widget is normally priced at $20, you'll make $5 (at 50% commission from groupon).
      Exactly - and this economy has been conducive to Groupon's growth. A restaurant with empty seats might prefer making $5 to earning nothing.

      Groupon isn't a new idea but an old idea adapted to online use. Remember the thick coupon books sold in many cities? Nominal cost covered printing and distribution - and the coupons inside were similar to what you see on Groupon today.

      kay
      Signature
      Saving one dog will not save the world....but will forever change the world of one dog.
      {{ DiscussionBoard.errors[3999874].message }}
      • Profile picture of the author Boston Joe
        I agree Kay. When you sit and think about it, it really is a very simple idea. It just goes to show you that a hidden gem may be right under your nose.
        {{ DiscussionBoard.errors[3999997].message }}
        • Profile picture of the author Michael Shook
          Discounts and sales work great in hard times. I know my sites that focus on discounts have been seeing an upturn in traffic. it especially goes up when bad US economic news hits the TV and the internet.

          Groupon was in the right place at the right time.

          With so much VC, though, kind of like Facebook I suspect they will be needing to develop new income streams or additional markets. The vig and timetables on VC money are usually pretty stiff.

          The IPO will bring in a nice chunk of cash, and I suspect that will go to debt servicing. I would further suspect that their IPO partners got a huge chunk of the shares. And if things happen like they often do in that world, they will be selling their shares in the secondary market, scooping a nice profit.

          They would also be shorting the stock and next week exercising those options for double up profits. These are the kind sof things that make million dollar IM launches where the product creators owe the JV partners a million and a half dollars look like small change.

          All this IMO, of course.
          Signature


          {{ DiscussionBoard.errors[4000053].message }}
  • Profile picture of the author TommyB
    Might not be correct to pitch here, so tell me I'm out of line. But what if groupon paid you for telling people about a good deal? See sig !
    Signature


    {{ DiscussionBoard.errors[4001380].message }}
    • Profile picture of the author Michael Shook
      Originally Posted by TommyB View Post

      Might not be correct to pitch here, so tell me I'm out of line. But what if groupon paid you for telling people about a good deal? See sig !
      If you're John Milanoski, its probably OK. If you're not I think the rule is still no affiliate links in your sig file. I could be wrong there, that happens sometimes.
      Signature


      {{ DiscussionBoard.errors[4001428].message }}
  • Profile picture of the author jr1228
    It should be interesting to see how the IPO pans out. With the stock market on a bit of unstable ground lately, I wonder how the shares will hold up.
    Signature
    500-word articles for $3!
    Send me a PM for details.
    {{ DiscussionBoard.errors[4006838].message }}
  • Profile picture of the author rondo
    Originally Posted by High Horsepower View Post

    Groupon Files for IPO - WSJ.com

    I must say, I am blown away at how much money this company rakes in and the fact they are the Fastest Growing company in the History of the Internet

    Groupon brings in $54 Million per WEEK!


    They also have 1 Million people per DAY opting in to their email list, maybe they could do a WSO?
    No WSO needed: $180 million was spent on online advertising in the first three months of the year.

    Andrew
    Signature
    {{ DiscussionBoard.errors[4007117].message }}
    • Profile picture of the author Gregg
      Originally Posted by rondo View Post

      No WSO needed: $180 million was spent on online advertising in the first three months of the year.

      Andrew
      I heard they were loosing a lot of money but the big guys see that revenue line and break into a hypersweat. The growth is impressive but they probably either needed another big shot of investment capital or going public might have been on a very short list of options to keep the momentum going.
      Signature
      {{ DiscussionBoard.errors[4007475].message }}
  • {{ DiscussionBoard.errors[4007514].message }}
  • Profile picture of the author NickMarks
    I was doing some research the other day using some comp spy tool, and I notice Groupon was like in the top 3 adwords advertiser. They invested a ton of cash, but now they're worth billions..
    Signature

    Nick Marks is an author, speaker and was announced as the Internet Marketer Of The Year 2007 by Russell Brunson & DotComSecrets.

    {{ DiscussionBoard.errors[4007636].message }}
    • Profile picture of the author MarkPavic
      It's amazing how a company that is losing millions can still enter the world of IPO's! I would love to see how they are going to get Groupon out of the hole after this IPO.
      {{ DiscussionBoard.errors[4008378].message }}
      • Profile picture of the author High Horsepower
        Not surprising to me. Twitter, Facebook and countless others have been trading insider stock (not IPO) in the Billions of dollars.

        I wouldn't invest a dime with Groupon. It's CEO was a band member 3 years ago, he has zero experience in business. I'd say he was more lucky than smart. No one can predict this type of growth. Less than 18 months ago they had 30 employees, now they have over 7,000 (mostly outside salespeople).

        Yes, they are losing money, but, Customer Acquisition is expensive. Can they get repeat business through those customers and make businesses happy, only time will tell. I have purchased about 6 Groupons myself over the past year. Every business I used it at did Nothing to make me feel special, capture my name or email, nothing.

        As far as I'm concerned businesses have no clue what they are doing with Groupon. After frequenting several of these establishments in the last year and seeing how pathetic their follow up marketing was to these Groupon offers I started working with business owners to teach them how to monetize the back end of their offer. It amazes me how these business owners have no plan in place to maximize the return on their Groupon offer. They let the Groupon rep set up everything and wait to see what happens :rolleyes:
        Signature
        Never give in--never, never, never, never, in nothing great or small, large or petty, never give in except to convictions of honor and good sense. Never yield to force; never yield to the apparently overwhelming might of the enemy. Sir Winston Churchill, Speech, 1941, Harrow School

        {{ DiscussionBoard.errors[4008423].message }}

Trending Topics