3 ms·

By that measure, the cold-callers who sold mortgage derivatives to pensioners are the greatest entrepreneurs in the history of the world.

AJ007 15y ago
This is ridiculous to compare Groupon to mortgage derivatives. This is what Groupon is guilty of so far: 1. Having such a profitable business model that everyone and their mom has launched a copycat or sub-niche clone in a fairly short time span. (Google, Facebook, Amazon, and countless other small players.) 2. Bowing out of a Google acquisition over regulatory concerns that arguably would have derailed their growth. 3. Re-investing what would have been profits right back in to the business instead of sitting on them. 4. Letting early investors cash out early. The competition in this space is brutal and the top players have seemingly bottomless pockets . Without an IPO Groupon will fail. With it, they have a chance of being around for a while. The "quality of deals" issue is separate. Just like a novice advertiser can blow a million dollars on display advertising and have nothing to show for it, the novice business can screw up their Groupon/Living Social/any daily deal site offer. That doesn't mean there is something wrong with the model. This is a two sided equation in a marketplace with incredible consumer demand -- its not a pyramid and with or without Groupon it will be around for a long time.
- sunchild 15y ago
  You completely missed my point, which was that the ability to make money is not, in and of itself, the only measure of success as an entrepreneur.
  - tptacek 15y ago
    Actually, it generally is how the world keeps score. Unconventional companies like 37signals might not brag about growing headcount or offices, but the reason people take them seriously is because they're lucrative.
    - sunchild 15y ago
      You're seriously taking the position that making money is the sole measure of business success? Legality, morality, etc. are irrelevant? Good for you, I guess.
      - tptacek 15y ago
        You want to talk about baseball, we score that in runs. That's all.
        sunchild 15y ago
        I'm sorry that you have such a cynical view of the world. Fortunately, many people (including people who make decisions about laws and regulations) disagree with you.
        sunchild 15y ago
        To those who downvoted me all over this thread: 1. Remember Enron? Lehman? Arthur Andersen? WorldCom? Parmalat? Countrywide? I could go on. I suppose the rule is "you're an amazing entrepreneur (unless you get caught)"? 2. It's you and me who pay the price when these companies collapse.
- gaius 15y ago
  Having such a profitable business model Well, that's not true. They spend $1.43 for every $1 in revenue.

AJ007 15y ago

This is ridiculous to compare Groupon to mortgage derivatives. This is what Groupon is guilty of so far: 1. Having such a profitable business model that everyone and their mom has launched a copycat or sub-niche clone in a fairly short time span. (Google, Facebook, Amazon, and countless other small players.) 2. Bowing out of a Google acquisition over regulatory concerns that arguably would have derailed their growth. 3. Re-investing what would have been profits right back in to the business instead of sitting on them. 4. Letting early investors cash out early. The competition in this space is brutal and the top players have seemingly bottomless pockets . Without an IPO Groupon will fail. With it, they have a chance of being around for a while. The "quality of deals" issue is separate. Just like a novice advertiser can blow a million dollars on display advertising and have nothing to show for it, the novice business can screw up their Groupon/Living Social/any daily deal site offer. That doesn't mean there is something wrong with the model. This is a two sided equation in a marketplace with incredible consumer demand -- its not a pyramid and with or without Groupon it will be around for a long time.

sunchild 15y ago
You completely missed my point, which was that the ability to make money is not, in and of itself, the only measure of success as an entrepreneur.
- tptacek 15y ago
  Actually, it generally is how the world keeps score. Unconventional companies like 37signals might not brag about growing headcount or offices, but the reason people take them seriously is because they're lucrative.
  - sunchild 15y ago
    You're seriously taking the position that making money is the sole measure of business success? Legality, morality, etc. are irrelevant? Good for you, I guess.
    - tptacek 15y ago
      You want to talk about baseball, we score that in runs. That's all.
      - sunchild 15y ago
        I'm sorry that you have such a cynical view of the world. Fortunately, many people (including people who make decisions about laws and regulations) disagree with you.
        sunchild 15y ago
        To those who downvoted me all over this thread: 1. Remember Enron? Lehman? Arthur Andersen? WorldCom? Parmalat? Countrywide? I could go on. I suppose the rule is "you're an amazing entrepreneur (unless you get caught)"? 2. It's you and me who pay the price when these companies collapse.
gaius 15y ago
Having such a profitable business model Well, that's not true. They spend $1.43 for every $1 in revenue.