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Comment by jbail | Hacker News Reader

Isn't the entire point of Groupon that one merchant per location gets their day in the sun --- and all the exposure that it brings?

I assume Groupon still takes 50% of the revenue like they do with their deal of the day. Since you're not enjoying traffic by being the deal of the day, I'm not sure why any sane businessperson would accept this type of split on what is a normal e-coupon.

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This is addressed at the bottom of the linked page:

  What does it cost?
  Groupon Store: There's no upfront cost. For promoted deals you get 70% of each Groupon sold. For non-promoted deals you get 90% of each Groupon.

  Deal of the Day: No upfront fee, you keep 50% of each Groupon sold.

Was it widely known that Groupon's cut on deal of the day is 50%? I thought there was some to-do a few weeks back about them wanting 100% of Groupon proceeds for some cafe.

If I remember the story correctly, if the cafe didn't go lower than 50% on the deal itself, then Groupon would take 100% of the money it generated.

Edit:I found the link.

http://www.facebook.com/note.php?note_id=443354298928&id...

When the customer pays less than $10, Groupon takes 100%.

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