Don’t use Groupon; it’s a scam

Small business looking to offer some kind of deal with guaranteed buyers will often use Groupon and other group deal sites.

Groupon started pretty small but was making the big bucks in less than a year from being launched. Though it may seem like a great idea to get on board with Groupon, the truth is that it could hurt more than it helps.

What does Groupon do?

You know how every company offers a group discount? Well, Groupon decided that maybe, if they got enough people interested in going to a company or trying a product, they could get a group discount on it. At first, they offered one deal a day in limited areas, and the deals wouldn’t actually be available unless a certain number of them were purchased (say 25 had to be purchased to give out the deal). Now, there are usually thousands of purchases of every deal, the a minimum is not required as much. The discount is usually about half off and can bring in many return customers for your business. Groupon does mystery deals once in a while, according to Business Insider, but sometimes it is better for customers to see what they are actually getting they make the purchase.

Sounds great – why not do it?

If you are a restaurant, for example, and you offer a Groupon for, say, $15 for $30 worth of food, you will get a lot of visitors. That is just one of the problems. Usually, you will get a ton of people coming to your restaurant right after the deal. This will increase customers a ton, but you may not have enough people working to really offer great service. At that point, the service may get so bad that you won’t get any return business. In fact, the people who bought it will just go complain about it.

On top of that, Groupon takes a 50% commission. So, basically, you are offering $30 worth of food for about $7. More than likely, you will be losing money on thousands of customers that will never come back and will tell their friends not to come either. You will be paying to lose business.

Try an alternative

The best way to get customers who will be back again is to use the paypercall market. You won’t end up losing any money, and more than likely, your service will be great. It is much easier than trying to give a deal to everyone, and you are sure to boost your business! You don’t pay unless you get a real person calling. What is there to lose?

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