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I used to think it was an industry with low barriers to entry, as did lots of people who have lost lots of money on Groupon clones. I'm not sure why, but it tur
by byrneseyeview 15y ago
I used to think it was an industry with low barriers to entry, as did lots of people who have lost lots of money on Groupon clones. I'm not sure why, but it turns out to be a really tough business for all but a few companies.
- Woost 15y agoGroupon's business is basically all sales and marketing. The v1 tech behind the deal-a-day offerings is trivial. (leaving aside recommendations and such) You need to be very good at signing up businesses and getting good terms for your company to succeed. In addition, you need to figure out how to get a stable base of customers of your site. Basically, Groupon clones have very low technical barriers to entry, but if you don't have a really good sales and marketing staff you're in trouble.
- pbreit 15y agoIt has natural monopoly-like characteristics: buyers go where the best deals are, sellers go where the most buyers are.