Simply put, How do Daily Deal Website make money? As the prices are already drastically reduced, they cant be taking much of a cut from each deal could they? All help is appreciated!
I guess it all adds up. If you make $1 of profit per person, then 100 people that's $100. If you have say 10 deals a day which 100 all use, that's $1,000 a day
They come into individual agreements with businesses, sell their product/service as a "deal", and take commission from all sales
Groupon takes up to 50% from the discount the businesses are giving to customers. So, if a business advertise 80% reduction in price, 50% from the reduction goes actually to Groupon, while the customers gets that 80%.
It is all right in arithmatics to calculate on any number of deals. But that must happen in reality- otherwise those projections are useless.
put it this way, they started with 4 people late 2008 early 2009 and have over 3000 employees and infrastructure and tons of cash in that short of time, they must be doing something right!
I think ,this will be counted with person to person but with the total amount of orders generated. Its works as the percentage of commission.As per every business/person the commission percentage will be fluctuates. First you have to find the vendors and make mutual agreement Get the deals and discounts information from the vendor post this deals with your website and get orders Deliver the deals to the customers The best part is ,you always have constant contact with your vendors for update and proper work completion