Is GroupOn poised for collapse?

June 14, 2011 at 12:58 pm 1 comment

Interesting guest post by Rocky Agrawal for TechCrunch with his thoughts on why GroupOn is poised for collapse.

“Imagine you’re a small business owner. You have to choose between two propositions:

  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.” – read the rest of his commentary

Hopefully (and if anyone cares, haha) when I get some more time I’ll write my thoughts and experience with GroupOn and the various daily deal sites.  Singapore is saturated with them – over 20+ at my last count.  There has got to be a shakeout happening soon… how many discounted spa deals do we really need flooding our inboxes?

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Entry filed under: Miscellaneous, Technology. Tags: .

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1 Comment Add your own

  • 1. Victoria  |  June 30, 2011 at 1:45 pm

    I care! Do share your thoughts on your personal experience with Groupon. I’m very curious.

    Reply

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