Sunday, April 3, 2011

Groupon : The Future of Online Discounting Is Here!

In today's economy, everybody is looking to get the most out of their money. Whether it's comparing alternative sources , using sales and/or discounts, people try to get the maximum value out of their dollar. Don't expect that to change any time soon, and it's because of that reason, that Groupon has soared in value over the last two years, and is looking at a very bright and profitable future. Even when the economy is booming, smart consumers are always looking for ways to get the best deals possible, and that's one major reason why Groupon should have no problems being successful in the future.



In the past couple of months alone, Groupon has expanded into new markets and has more than doubled their previous amount of subscribers. (As reported here by Bloomberg) Since Groupon's decision last November to decline Google's $6 Billion dollar offer, the company has obtained over 70 million users and has added over 200 new markets. Also consider that in December 2008, Groupon had a mere 400 subscribers. The image above displays the revenues per month since January 2010. In January 2011, Groupon reported an estimated income of $88.9 million, that's eight times their profit just a year earlier. Talk about serious progress, and considering that the company is just a couple of years old, the sky could be the limit.

The fact that Groupon has grown incredibly large over such a short period of time would lead you to believe that today's social media network frenzy has played a huge role in it's success. It's never been easier for friends or family to share discounts with one another. The company has grown so large, that it was reported by the New York Times, that seven out of eight suggested possible deals by merchants have been turned down by Groupon. The fact that over 87% of suggested deals are declined shows how much demand their is to be listed on the website. As more people learn about Groupon, and actually use some of the discounts, the company will only grow larger and become more of a success. 




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