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Much has been said and written recently about how to jump-start small businesses in the US, but the wildly popular e-commerce site Groupon seems to doing just that while giving consumers exactly what they want—discounts.
“We’re the first people who have really figured out how a small business can do advertising and see huge results without paying upfront,” Groupon CEO Andrew Mason told CNBC Thursday.
“These businesses have very small marketing budgets, and they only have to pay when the customer comes in the door in the form of a discount. So everyone ends up winning.”
The two-year old Groupon , run by 29-year-old Mason, offers local businesses (small and big) free advertising through a discount coupon-redemption business model.
Consumers have embraced theChicago-based Groupon and the concept since its launch: It has 13 million members worldwide in 29 countries.
The nitty-gritty is that Groupon features one new deal daily—a price reduction on goods or services—by a fixed deadline. Among those offerings are discounts on clothing, health services, such as acupuncture, meals at restaurants and different kinds of entertainment.
Talk about bucking the trends!
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Christina Cheddar Berk is editor of CNBC.com's Consumer Nation and chief trend spotter.
Courtney is a retail reporter for CNBC.
Tom is a Senior Editor and Assignment Desk Manager for CNBC TV. He also writes about the business of beer for CNBC.com.
Stephanie Landsman is one of the producers of CNBC's 5pm ET show "Fast Money."
CNBC Segment Producer
Retail expert Robin Lewis offered what he called a "win-win" solution for two retailers: Amazon should acquire Sears.
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