Groupon.com Is The New Napster

I love Groupon.com, but I love it for all the reasons a consumer should love it.  The B2B side of the company, where the money and economics come from are broken.  Groupon is the new Napster.  We all loved Napster, Internet users thought it should be worth Trillions of dollars, but the B2B part of the equation didn’t work, and Groupon is a nearly perfect mirror of that herunterladen.

Rumor has it that Yahoo offered between 1.3 and 2 Billion dollars to Groupon.  If that’s true Groupon should have taken it, because there is a limit to the number of businesses that are going to continue to use Groupon, and so the explosive growth they have had thus far is going to come to an end shortly herunterladen.

The problem you see with Groupon is that when you are a consumer and you start getting $20 an hour massages, all you want is $20 an hour massages, so you get the Massage of the week deal on Groupon, there right now always is one, because all the massage places in the Bay Area have experienced the “hey there’s no business today, because Groupon is running a sale days” and they think to themselves I should do that.  Only when they do they discover that they don’t get $20 for that hour massage they get $10, because Groupon takes half, and the kind of person that gets a $20 an hour massage expects deep tissue with a happy ending, and doesn’t leave a tip.  A real problem if you are the kind of place that doesn’t do those things and the worker makes about 50% of their income from the tip kinder hörbücher kostenlos downloaden mp3.

The same goes for Groupon dining deals.  Why pay full price for a meal if I can buy $100 worth of gift cards for $50 and never pay full price for a 1 month anniversary date again (not my thing but girls like it) Keepass 2.

The economics are such that Groupon has turned 4 star dining and Massages in to commodities that as a consumer I can have served by the deal each week that serves my needs. 

There is not a restaurant so amazing that I would make it a regular spot at full price that no one has ever heard of before they went on Groupon that Groupon suddenly made them the hip place in town.  It doesn’t happen.  You go on Groupon because you are a business that is starving and the check for 1000 people getting your services at 75% off of what you’d normally get will let you keep your lights on for a few more weeks until the holiday rush saves you until the economy recovers.  Maybe if you get really lucky you will get some people who liked you enough that they will come back for Valentines when you charge 3x as much videos from orf tvthek.

So in my Napster comparison, music can’t be sold as free, because the artists and labels need to be paid, so while consumers love getting music for free, and will consume a lot of it, eventually you run in to supply issues.  When that happens your economic model breaks and you go out of business.  I see that happening with Groupon herunterladen. Eventually Groupon will run out of starving businesses looking for a quick boost, and they will have to either drastically lower their cut, or change the economics in some other way so that they can keep the commodities market running putty file.

All of this ignores the ability for competitors to build a thousand clone sites in each geo.  Swoopo had a good model too until there became a 1000 clones of it stealing the pay per bid space skype kostenlosen chip.

So is Groupon worth the 1.5B that Yahoo offered?  Michael Arrington, who recently did a deal with AOL, probably has it about right Yahoo likely talked to Groupon and either Groupon balked because it thinks they are in it for the long haul to IPO, or something came up and they had to delay for a little while (like maybe AOL thinking they were going to reverse merge with Yahoo?) can also beed from netflix.