On the surface, Groupon probably is not that bad of a deal for businesses compared to the cost of acquiring customers through local advertising. The problem is

On the surface, Groupon probably is not that bad of a deal for businesses compared to the cost of acquiring customers through local advertising. The problem is that businesses get a bunch of customers who buy once, and go away. That's not a great value proposition for every business, but you would be surprised how many local businesses would take these deals any day of the week. Groupon will find its sustainable niche of businesses to work with, the bigger question is whether consumers will continue to flock to those particular deals.