The idea behind Groupon is a simple one send out one coupon a day every day, to people who sign up. Subscribers get great deals at local restaurants retailers, spas and more, assuming a minimum number of people go for the deal, and those businesses stand to make a killing when they are featured, with access to countless new potential customers. For its part, Groupon takes a cut of the deal. Founder Andrew Mason started in Chicago in 2008, and today, his company reaches subscribers in 150 cities across 19 countries.
With that win-win model, Groupon has become an Internet phenomenon,makind a reported 350 milion annually and inspiring copycat sites like BuyWhiteMe
Turns out this groundbreaking idea has been successful because of good old fashioned business fundamentals. "Groupon is different than most startups says business consultant Martin Vanderschow
First, they had a real business model that showed early profit, in only six months. The model really works because it makes sense on both sides of the financial equation. For investors, it provides a sound investment that's not vapor. For the companies that use Groupon to market, it provides probably the most cost-effective buy available anywhere. It's still about access to real buyers, and Groupon provides a lot of them."
So how did Mason, 29, create this Web 2.0 wonder? Looking back on Groupon's rise from virtual unknown to household name, even he seems a bit surprised.
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