Here’s a reality check: Groupon lost $456.3 million in 2010. It lost $146.5 million in Q1 2011. Sounds like a winner, huh?
Groupon has all the classic hallmarks of the 90’s era dot-com failure. Big new idea: check. Media hype: check. “Too good to be true” come-on to consumers: check. Endless need to expand into new markets/acquire new customers or perish: check. One-trick pony: check.
Read the full article here.‘Hot’ Doesn’t Equal ‘Profitable’ | ClickZ.
And for some really good meaty bits, be sure to read the “new lessons to learn if we want to avoid the mistakes of the past” at the end of the article. I’m shocked at how many people never learned these lessons.