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Having dealt with the local advertising model myself (restaurant virtual tours) I can testify how god damn hard it is to get money out of small business owners
by mcdowall 15y ago
Having dealt with the local advertising model myself (restaurant virtual tours) I can testify how god damn hard it is to get money out of small business owners so the success of Groupon is a surprise to me.
From a consumer perspective I unsubscribed a few months ago as I really didnt want to hear about a Botox or Massage deal each and every morning. It was good for xmas presents I will admit but in my local area the variety of the offers was somewhat limited (and Its by no means a small town), I shouldnt imagine I will check the site until around mid December again.
- raganwald 15y agoI can testify how god damn hard it is to get money out of small business owners so the success of Groupon is a surprise to me. Well, now we know how to get $62,500 out of a small business: Offer them $7,000 within about 5 days. This is the salient point of the article: Groupon is more than just a marketing vehicle, it has a financing angle to it that should be evaluated in terms of risk.
- larrys 15y agoTrue and there is also (and I can't think of the name) a psychological principle for this which is how someone will pay money to insure against an event with a negative outcome but not to wager on something. Umm. I think it might be called "Prospect Theory" or some variation like that.