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 embracedtheChicago-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.