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The BIGGEST secret to groupon's success is....being able to convince store owners to give REAL, REAL good coupons!

That is the OVERWHELMING value of groupon--which is why I question their longterm strategy. Store owners will at some point figure out that they can give the same type of super-awesome coupon online and get similar value as groupon provides only in this case they don't need to give 50-60% of the revenue to groupon.

Groupon is basically made possible due to the spread of crappy coupons in the past decade. When coupons originated, all coupons rocked. I remember as a kid in India, when a coupon appeared in a paper, it was rare and the paper would sell out. Literally sell out! All because it had a coupon. And by definition, a coupon meant real savings--not 10 cents off your dinner.



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