Sage-Tips

How much of a cut does Groupon take?

50\%
Groupon takes 50\% of the sales revenue as its service fee. The deal will generate $1,500 in revenue from 30 new customers, and of that amount $750 goes to the salon and $750 goes to Groupon. Once a deal is advertised, consumers who purchased the Groupon receive it regardless of how many were purchased.

Are there disadvantages to merchant using Groupon works?

Great way to advertise your business. With a Groupon deal, you can get your product or service in front of people who are unfamiliar with what your business has to offer. It is your hope that they like what they see and will come back for more in the future. 3.

Is Groupon a good idea for my business?

Groupon is a solid advertising platform, has a good reputation among consumers, and is easy for business owners to start using. In the short term, Groupon (and similar sites) can be a powerful and effective way to generate new leads for your business.

Why do companies use Groupon?

Businesses can use Groupon to promote discounts (vouchers) for services and products. Essentially, Groupon is a middleman that wants to connect you with people who will buy your services and products, because the more that people buy from you, the more money Groupon makes.

How does Groupon benefit small businesses?

While Groupon uses small businesses to make money, its business model doesn’t necessarily benefit them. There’s no upfront cost for a business if it wants to list a deal on Groupon. However, Groupon requires that the business discount its services or products offered by at least 50 percent,…

Is Groupon worth $3 billion?

There has been talk that Groupon might be worth as much as $3 billion (it now looks as if Google thinks Groupon might be worth as much as $6 billion), and yet here are some blog comments from retailers who’ve tried the service: “It is for desperate businesses.” “The financials just can’t work out.”

How much does it cost to list a deal on Groupon?

There’s no upfront cost for a business if it wants to list a deal on Groupon. However, historically, Groupon has required that the business discount its services or products offered by at least 50\%, and sometimes up to 90\% (again, this model is currently in flux). Then, when a customer purchases a deal, Groupon takes half of the revenue.

How does Groupon take its 50\% cut of revenue?

Then, when a customer purchases a deal, Groupon takes half of the revenue. This point bears repeating: Groupon takes its 50\% cut of every single deal sold—not just one—no matter how many you sell. For example, let’s say you normally charge $100 for a private horseback riding lesson.