Groupon Poised For Collapse? Interesting Article.
1. You can pay $62,500 for marketing. You’ll get a whole lot of customers coming through your door. No guarantees if they will ever come back, but they’ll come once.
2. I’ll pay you $21,000. You get $7,000 in about 5 days, another $7,000 in 30 days and the remainder in 60 days. In exchange, you’ll give my customers cheap products for the next year.
I’ve been working on local for a long time and I know it’s hard to get small businesses to spend money on advertising. Really hard. Even getting $200 a month ($2,400 a year) is a high hurdle to meet.
There’s no way a business will sign up for #1. Most merchants would laugh you out of the store if you asked for $60,000.
Except they are. In droves.
FULL ARTICLE:
Why Groupon Is Poised For Collapse
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