You’ve probably heard that Groupon raised $135 million at a valuation north of $1 billion over the weekend. Amazing. There’s no technology here, just incredible execution. And a model that any local media company would have been able to adopt. Many are certainly trying a copycat strategy now.
Groupon’s founder and CEO Andrew Mason recently told Inc. magazine there are “hundreds” of businesses on the waiting list in larger cities. And while some business owners don’t like the deep cut Groupon takes (50%), the promotional effect makes it a win-win. And a cash cow for Groupon.
For more details about this local advertising phenomenon, plus feedback from some business owners who have used it, check out the full Inc. article here and All Things D post here.