Groupon

It is a brilliant idea to me to think that there is websites now available that advertise deals to each individual city across the United States. Essentially Groupon is a free website that sends personalized emails to your account about local deals. If you like the deal and would like to use it, just print it off and bring it to the vendor. Groupon's vendors offer up to 90% off of the merchandise.

The confusing part to me is how the website makes money. I think that the company has partnered with the companies that advertise on the website and receive a commission for the purchase. It is common that websites do this. Groupon is more or less a main website for the web of sites that are on it.

Another perk that the website offers is referral appreciation. For each friend that you invite to the website, Groupon will give you $10 to your next purchase. It is a great incentive for the individual to share these deals with friends, thus spreading the word about the vendors.

I have only heard good things about this website and how convenient it is to use. However, the one negative piece is all the emails that are sent to your account. Depending on the size of your local city, the amount of companies that have daily deals is outrageous. Each email brings in awareness for Groupon as well as the vendor.

Here is a direct link to Groupon. What challenges do you see this company having in the future?