

Groupon Campaign Needs Buyers to Return 7 Times to be Profitable - KFishner
http://tivly.wordpress.com/2012/08/03/what-a-groupon-campaign-needs-in-order-to-be-profitable-too-f-much/

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pg
This is completely made up. In fact about 90% of Groupon deals are profitable
for the merchant in themselves.

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ryanwaggoner
Really? Do you have a source for that? Most of the deals I see are for things
like restaurants, which have really slim margins. I'm having trouble
understanding how they could give away 75% of their revenue and still come out
ahead on the first sale, even with upsells and including customer acquisition
in that 75%.

Regardless, it doesn't seem to be _completely_ made up; the guy provides
sources and math.

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pg
Yes; I learned that from a friend who works at Groupon and is familiar with
all their numbers.

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robg
You expect an honest accounting from an internal source?

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pg
I don't expect my friends to lie to me.

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robg
Even given the best intentions, why assume their information is accurate?
Aren't public companies incentivized to bias evidence to their utmost favor?

90% seems so high it fails the sniff test but I could easily see how it's a
figure passed around internally. I'm just surprised you accept (and now
promote) that number as fact.

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pg
My friend is high enough at Groupon to know accurate numbers.

I'm not sure what more I can say that would satisfy you. Can we stop now?

