The social media marketing sweetheart, Groupon, which went public late last year to not so exciting response turns out to not be all that exciting to the businesses who use the site as well. The model is a mixed bag for businesses. More than one quarter of the vendors offering a daily deal lose money on the venture, and another 18% merely break even. These figures were released by a Rice University study.
Many established online sites like Amazon, Google and even eBay have started their daily deals which makes the quality of the offer more important than ever. It was also pointed out that one-third of all daily deal sites were either bought or went out of business in 2011. Not so great!
I signed up for Groupon and a couple of other daily deal sites and quickly opted out because I was getting a tremendous amount of emails each day from each of them.
Have you had any success with Groupon or other daily deal sites? Share your experiences with our readers!