Based on the articles I've read and seen, Groupon does not seem to provide a decent return on investment to participating business. This makes me curious as to

Based on the articles I've read and seen, Groupon does not seem to provide a decent return on investment to participating business. This makes me curious as to how much of their business is repeat business versus new business. I have a feeling, if you look at the participating businesses, a vast majority of them will be new for each new cycle. Because there can only be a finite number of businesses, I would imagine Groupon is going to eventually run into one of two problems (should they continue and not flame out before this). Either they run out of cannon fodder (new Grouponees) and implode or they run out of cannon fodder and shrink drastically down to serve a small core of loyal business and rebuild with a different model. Either way, they are burning through capital and businesses at a pretty good clip so I would imagine they are going to run into this situation sooner rather than later.