How Groupon Makes Money
Groupon makes money by charging a marketing fee advertising and promoting their offers. In most cases, that fee is a percentage of the revenue generated by selling on Groupon.
Groupon’s merchant satisfaction rating is about 79%—15 points higher than the average B2B merchant satisfaction score. Merchants make money from running deals on Groupon as Groupon customers typically spend more than the value of a deal and 91% return or plan to return to the business. Plus, there’s no upfront cost to sell on Groupon—we don’t make money until you make money.
Groupon’s transparency with its customers extends to merchants as well. When you sell on Groupon, there are no hidden costs or fees. We help you prepare for an increase in customer volume, give you proofs of the deal before it goes live, and work with you during and after your campaign to make sure everything runs smoothly. Your Groupon Merchant Center will also be there to help you monitor your return on investment and view customer feedback.
In addition to promoting your deal, Groupon provides everything you need to track the progress of your local advertising efforts. Groupon’s comprehensive online marketing strategy also includes an array of free or affordable small-business marketing tools.
Groupon also offers great products for credit card services. Our merchants get remarkably low rates on credit card processing on most major credit cards with Breadcrumb Payments. For restaurants, we offer Breadcrumb, a point-of-sale system designed by hospitality professionals to make running a restaurant or bar as simple as possible.