Groupon has been hailed as the new wonder kid in marketing. The problem is that those reviews often come from consumers. According to Carla Dewing’s insightful article, it’s easy to lose everything if you jump on Groupon without knowing what it’s for and how to leverage the success.

sale on glass window

People who use Groupon are looking for a good deal. This means that you don’t want to do a Groupon deal on an expensive product or service. Do a small deal, realize that you will only make 50% of your discounted price, and have up-sell products and processes in place to leverage the customers coming to you.

For a business the bottom line of Groupon isn’t sales, its exposure. You have to be willing to eat costs for the sake of getting people through your door, and need to make sure you don’t do too many Groupon deals as you want to build long term customers who buy from you because of quality, not because of price.

Photo Credit