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Groupon is a deal-of-the-day website that is localized to major markets in the United States. The first market for Groupon was Chicago, followed soon thereafter by Boston and New York City. As of November 2009, Groupon serves nearly 30 markets. Groupon debuted in November 2008 as part of The Point, a platform for collective action.
 
Compete.com cites Groupon as one of the top 1,400 sites on the Internet, with about one-third of its traffic coming from Facebook ads. According to quantcast.com, Groupon has 321,000 unique visitors each month and is one of the top 6,000 sites on the Internet. On July 1, 2009, Groupon rolled out a new website design.

The idea for Groupon was created by, now CEO, Andrew Mason. The idea subsequently gained the attention of his former employer, Eric Lefkofsky, who provided $1 million in "seed money" to develop the idea. The site launched in November 2008

The company offers one "Groupon" per day in each of the markets it serves. The Groupon works as an assurance contract using ThePoint's platform: if a certain number of people sign up for the offer, then the deal becomes available to all; if the predetermined minimum is not met, no one gets the deal that day. This reduces risk for retailers, who can treat the coupons as quantity discounts as well as sales promotion tools. Groupon makes money by getting a cut of the deal from the retailers (typically 50%).

Groupon focuses on unusual, special or niche things in each market. Previous Groupons have included whale watching, personal trainers, teeth whitening, golf, cooking classes, sports and theatrical events, and a variety of bars and restaurants. Each day's deal is accompanied by an irreverent, tongue-in-cheek description, similar in style to Woot.

Groupon is built on ThePoint's collective action engine. Based on the concept of an assurance contract, the system works by a predetermined number of people joining a campaign or a threshold amount of money being pledged to it. Once that "tipping point" is reached, pledges (if any) are called in, and the action takes place. Groupon also works with the same model: a certain number of people need to sign up for the daily deal, or no one gets the deal. Founded by Andrew Mason, ThePoint debuted in January of 2007.

ThePoint and Groupon are partially funded by an investment from New Enterprise Associates, one of the largest technology investors in the United States. Eric Lefkofsky is also a lead investor.
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review by . February 05, 2011
posted in Business Matters
The world catches on... A brand new online shopping experience!
There’s a saying in Chinese, 团结是力量 (unity is strength). This is the concept behind the business model of the billion dollar company GROUPON. The site is now valued at some $6 billion after rejecting a buyout from Google last December. It’s been rumored that Groupon is on the road to an IPO for some $15 billion this year. So, with some $350-500 million annual revenue, what does this company has to offer to its consumers?          In properties, …
Quick Tip by . February 06, 2011
posted in A Whole New World
If you haven't bought enough over the Christmas & New Year or if you are a shopping addict, then this is the site for YOU! Otherwise, Groupon doesn't do much for someone who doesn't like shopping nor window-shopping. As a business, it is highly interesting. As a website, other than the technicality of a bidding "auction", I don't find it engaging. It does what it intends to do though & that's probably enough for its targeted audience & investors!
review by . July 19, 2009
My mother once called me cheap.  I informed her that this was impossible, because cheap people have the CHOICE about whether to spend money...I was actually, just broke.      In my quest to not be broke, I've learned that besides increasing earnings, one must look at decreasing expenditures.  On the flip-side, businesses need to market to new customers in a way that is cost effective for them.  GroupOn has satisfied both needs in one website.      …
Quick Tip by . December 22, 2010
If for no other reason, you should subscribe to Groupon just to check out their unsubscribe page. Well worth the price of admission!
review by . January 13, 2010
   I’m always finding out about sales the day after they end. Typically, I’ll be walking into a restaurant on a weeknight only to find out that yesterday, the same meal was being offered at half the price. Or, even more often, I’ll be scrolling through all the spam in my inbox when I finally have a second on a Thursday, only to discover that the 40% off coupon from Borders was only for Tuesday and Wednesday and the $200 off coupon from Travelocity expired Wednesday at …
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