Pay Day... it’s time to get paid!
When deciding to work with Groupon or any traditional marketing and advertisement firm, you want to know up front how they must be paid to proceed with your marketing or ad project. Working with Groupon is very different in how they proceed with their projects for merchants (the individual or business) and how the merchant pays them!
To begin working with Groupon you simply call their customer service line to speak with someone about advertising on their site. From there the Groupon customer service representative will direct you or forward your information to one of their sales rep. Then you will speak with the sales rep and they help guide you on the type(s) of campaign(s) that you may want to build for the type of business that you have.
Your business campaign ad is built and then Groupon launches your ad without you paying them a single dime to start. “So when will I pay Groupon” you may ask?
You pay Groupon only when your Groupon is purchased by a customer.
How Groupon Gets Paid
Groupon is paid once a customer decides to purchase one of your campaign deals. The typical payment due to Groupon from the purchase of your Groupon deal is usually a 50% of the deal cost. For example, a Grouponer purchase your Groupon deal for the rate of $50. Groupon is paid half of that income, as a marketing and administrative fee.
How You Get Paid
You, the merchant is paid 47.5% of the purchase price of the Groupon deal. So if a customer purchased your campaign at for $50, you are paid $23.75. Well what happened to the other 2.5%? Why don’t I get half? All Groupon transactions happen via credit card processing, therefore the merchant is responsible for paying the credit card processing fee (as you would be if a customer came to your business and use their credit card). Credit Card Processing Fees is typically 2.5% of the sale!
When There Is A Sale
The reason Groupon offer sales is to help drive more purchases for campaigns that may have not have had much success with sales.
If you have ever used Groupon as a consumer before you know that Groupon have sales on top of the already discounted deals. From a consumer standpoint this is amazing, but from the merchant (the business) standpoint this sucks! Why, because when there is a sale on your Groupon the business takes another hit on even even more discounted service. This means the income you would normally make from the sale of your original Groupon deal price is now lowered even more making your income even less.