Groupon – Crowdsourcing

Assimilating and being organized pays at Groupon.com.

Here’s how it works:

  1. Groupon makes a bulk deal with a business.
  2. They offer it to the Groupon community.
  3. If enough people buy, everyone gets the deal.
  4. If they don’t get enough people to buy, it dies.

Beyond saving money, Groupon is fun and it exposes you to products or services you can’t pull the trigger on.

I missed the boat on this deal. My wife and I love Bonsoiree in Chicago. It’s an upscale BYOB place. They offered their $50 tasting menu for $20. 517 people bought in to get the deal. Sure there’s fine print, like, it’s only good Tues-Thurs and one per table.

How did Bonsoiree win?

  • 517 guaranteed covers.
  • Prepaid.
  • Exposure to everyone on the email, even though they did not buy in.
  • They do not cannibalize their other customer base by offering a deal across the board on.

Another huge success story. After selling 220 Groupons in February for $189 teeth-whitening services from Brite Smile, down from the usual $600, a similar promotion a few months later sold more than 700 deals due to the larger e-mail distribution.

Today, Groupon makes about 50% of the commission. This seems high at first, but along with the exposure, it’s reasonable. Personally, I would like to see better deals and a smaller split w/ Groupon.

by admin

Bookmark the permalink.

Post a comment or leave a trackback: Trackback URL.

Post a Comment

Your email is never published nor shared. Required fields are marked *

You may use these HTML tags and attributes <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

*
*