From 37 employees to 12,000 in three years, greed fueled them to grow way too fast!

He tells it like it is, no bullshit but it seems as though he has been played.

It’s not rocket science! Why are so many small business getting burned?

Groupon started out offering one-time deals to advertise and get new customers in the door. It worked for some businesses and failed horribly for others. They branched out to yield management with Groupon Now, which allowed local merchants to target customers with deals when business was slow. Today, they are closing the loop by offering rewards for loyal customers. Repeat customers will be able to unlock deals (ie. $20 worth of goods for $4) once they have spent a curtain amount at a merchant. This reminds me of the Starbuck’s Gold rewards, which does something similar and really works!

No pre-purchasing, no coupons to present, and discounts appear automatically on your statement - this is deals/coupons done right!

50% discount and people still don’t want it? humm…

Andrew Mason, founder and CEO of Groupon, apologizes for over selling and not satisfying orders for groupons sold on new years day in Japan. His heartfelt apology really comes through and his ownership in taking full responsibility and willingness to be transparent and put the customers first is a lesson we can all learn from.

(Source: news.ycombinator.com)

GROUPON RECEIVES $135 MILLION FROM DST AND BATTERY VENTURES

Investment to Support Rapid Growth of Social Commerce Globally

Today, Techcrunch is reporting that Groupon’s valuation of their recent round of funding is in the $1.34 billion range.

Groupon is a great service and I use them daily but $1.34 billion?!? This is just another exampling of rising startup valuations - bubble, maybe.