Avoiding The Pitfalls With Groupon

Entrepreneur: Avoiding The Pitfalls With Groupon

A recent blog post and a study by Rice University show that social couponing services can actually cost small businesses money if they’re not careful.

“The Groupon coupon service is hot right now — not only with customers who love getting deep discounts, but also with businesses looking to appeal to the site’s vast database of potential clients.

Groupon and other social-coupon sites (such as BuyWithMe, LivingSocial, SocialBuy, and Tippr) offer deals with a catch: For a deal to become valid, a certain number of people must first purchase it. That way, Groupon makes a certain amount of money, businesses are guaranteed a certain number of customers, and customers get deep discounts. Supposedly it’s a win-win-win situation.”

Small Business Computing Staff
Small Business Computing Staff
Small Business Computing addresses the technology needs of small businesses, which are defined as businesses with fewer than 500 employees and/or less than $7 million in annual sales.

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