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I think this is a genius move for them. Groupon tries to be a social coupon type of place but they don't actually have a social network to back them up. If yo
by biot 16y ago
I think this is a genius move for them. Groupon tries to be a social coupon type of place but they don't actually have a social network to back them up. If you and three friends want to take up that skydiving offer, you need to coordinate outside of Groupon, agree upon it, and then everyone trusts that the others made the purchase.
Now imagine doing this on Facebook where you could potentially (no idea if they have this functionality planned, but they should) purchase the skydiving offer with a provision such as "only settle the charge on my credit card when three of my friends also sign up". It would get posted to your wall as "John Smith signed up for skydiving at 50% off and needs 3 more people to join him". Then Jane Doe also signs up and your wall now reads "John and Jane are going skydiving and they need 2 more people to join them". If Facebook did that, it could be huge.
Additionally, Facebook credits cost 30% commission to the vendor. Groupon charges 50% commission for their deals. Assuming that the commission structure for Facebook Deals uses the same percentage and there isn't an additional fee on top, it's more financially appealing for merchants to sign up with Facebook over Groupon. To match it, Groupon would need to cut their revenue by 40%. That'll be a tough pill to swallow.