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They first get cash

On June 14th,rocky &middot entrepreneur  ;Agarwal ( Rocky Agrawal ) has recently published a series of articles on business model ,group purchase ,he started from 2005 in the work of local products .
He thought the Groupon pattern is doomed to collapse .The Groupon model is to use the revenue to support the back before the group purchase group purchase operation .Stop to March 31st ,it owed $290700000 in business .
This model is similar to the &ldquo &rdquo ,let a businessman ,hollister pas cher;loan  ;risk .The article is as follows  :if you are a small business owner ,you have two options  :1 ,you spent $62500 on marketing ,many guests flocked to your door ,but do not guarantee will come back ,but will at least once .
2 ,I will pay you 21000 dollars .In 5 days, you get $7000 ,another $7000 within 30 days of receipt, the remaining closed within 60 days .In exchange, you next to my guests to provide cheap products .
I worked in the local business work for quite a long period of time ,I also know that it is difficult to convince small business and spend money on advertising .Quite difficult .Even with $200 per month ($2400 a year ) advertising is also very high threshold .
Not many enterprises will choose the first option, if you want to merchants pay $60000 ,people will laugh .Unless they are gathering in crowds and groups .Seeing from the surface, two kinds of schemes are completely different ,but in fact  : it is the Groupon business model .
Companies spend huge cost of advertising, pretending to get new user &ldquo  ;no risk &rdquo  ;.But in fact there are risks .An ad in the newspaper ,the maximum loss is losing advertising .
But on Groupon potential losses may be added ,hollister france,each Groupon customer hasty and come ,may give business risks .Groupon is not an Internet marketing mode ,it even and usury .In our example,hollister, enterprises through the provision of Groupon group purchase product revenue of $21000, but the actual staging it, is very ,very expensive .
They first get cash ,but after long time discount .( Note: the operating mode is mentioned here in the United States and Canada ,other regions of the world have different .In many cases ,Groupon ) operation for a businessman is a financial decision .
Groupon is feasible in finance faces challenge .And the use of Groupon product traders like ,buy it shares may be equally bad .This is just my opinion, but I can give some facts .Flow is not necessary profit flow Groupon can clearly find customers ,but to see whether it has the financial sense ,become a consumer purchasing tools ,the merchant must know the two key data  :1 ,Groupon consumers, which is the enterprise customers ,the proportion of them much .
2 ,customers Hui Toushuai high .If the first digit is higher, the effect of the market more bad .Second data is higher, the better the effect of the transaction .But for most businesses, the two data cannot know .
The introduction of the Groupon time is not long ,still cannot be collected data ,abercrombie.Groupon did not include these data tracking method .( my hunch is that Groupon didn .) Groupon preached that he is double win mode, while the reality is that most cases of Groupon win business transmission ,doudoune moncler.
Groupon business contract agreement is the most unequal .Hidden auction Groupon potential success is essentially auction .It is not clear ,but the AdWords and Google auction platform similar ,only low economic effect .
Groupon group purchase is made for adult scarcity ,pushed prices to absurdity .In this type of auction, bidding is the Groupon group purchase product total revenue ,it functions like &ldquo &rdquo  ;guarantee  ;:merchants and Groupon negotiation good revenue into and trading volume .
Can sell number volume and large programs depend on discount number, product general demand is many .The greater the discount ,sales volume is larger .All these will stimulate Groupon revenue ,it also stimulates the salesman to sell more ,larger orders ,some may simply not suitable for small enterprises .
In the Groupon to boost sales ,may use &ldquo,abercrombie france; Who&rsquo  ;s Who&rdquo  ;pattern ,sell those called &ldquo select &rdquo  ;products .Groupon in the selection of products on the opaque ,not always excellent price ,sometimes it can provide low value transaction ,the purpose is to enable users to open the mailbox .
I often hear business that Groupon in a last-minute change to trade ,the purpose is to make the Groupon more profitable .Cash is king of many small business cash shortages ,and Groupo resonance .
Marketing without advance payment ,a few days can get cash ,and a stable customer flow .This is not a new idea .Rewards Network also had to the hotel in exchange for a period of time discount ,but no Groupon generous conditions .
Groupon prospectus said tough economic is a risk ,but the recession is a chance .With the various types of credit atrophy ,the plight of the enterprises into cash opportunities ,which will be the future of product sale .
But the real risk is Groupon once economic regression ,the enterprise may not have discount sales products .The Groupon repeat business,hollister, some analysts pointed out ,many businesses continue to provide Groupon products group purchase ,this is evidence of long-term business model .
Customers to patronize have what not good, is it? For a Groupon businesses ,a repeat customer is good .But for Groupon ,repeat customers means that the problem is coming .I have not clear  :in bad economic situation ,some enterprises cannot be repeated abortion ,why still continue to provide Groupon products ,or in different suppliers in circulation .
Some businesses allow users to buy 3 or more pieces of products .To attract customers and the loss of sales of commodities, which can get a new user .With Forkfly CEO Wagner ( Paul Wagner ) conversation I wake up .
Forkfly Groupon Now competitor .Wagner suggests that these consumers and difficulties in family practice ,when the credit card debt ,they also changed the card .This is clear  :the later group purchase group purchase revenue to pay the debt .
Seems to have received money is this business ,hollister,actual or .Many of the products out ,staff to pay cash ,but in small businesses ,but with Groupon to get cash ,s momentary use .Attack Groupon if a loan will be unjust ,what will you do not pay back the money  ?.
If you are a businessman ,no business ,just want to earn quick money .You can provide a very generous deal ,may sell hot .About 30 days you will be trading revenues of $2/3, then no longer operation .
I was in a difficult business stayed .If you are going to make the enterprise bankruptcy ,you can and Groupon contract, if lucky ,light is a cash advance can let you get away ,unfortunately, you would have to escape the enterprise .
This may be the best choice for you .In short ,you are actually helping Groupon ,because it is by revenue valuation ,abercrombie france,no one to worry about accounting risk .Utilization of small enterprise receivables as support ,Groupon established a loan portfolio .
If an enterprise bankruptcy ,the consumer may run to Groupon to return the money .Unless Groupon for enterprises in the credit evaluation ,otherwise there is a risk .Groupon complex terms and a reverse problem, those successful enterprises do not need Groupon to attract customers ,abercrombie and fitch.
To the normal operation of the Groupon must have a premise  :all the loans will return .As mortgage lenders like Groupon ,doesn how risky ,because some businesses only on paper the repayment ,abercrombie,also do not know how many group purchase goods did not perform outside .
If the problems of enterprises ,record disappeared ,each Groupon buyers will struggle .Groupon can modify the terms and conditions to reduce the risk ,so as to allow consumers to bear the risk of business failure .
Finally the Groupon where to get money to those business credit card  ?.Within a few days ,the bank would have to pay Groupon .Groupon prospectus wrote: &ldquo  ;through the merchant payment and revenue growth ,we can get the cash flow from operations ,thereby supporting operation capital requirements .
Business loans generally consists of  :when a customer bought group purchase goods ,then to the merchant payment ,we will get the payment in advance .In North America ,in Groupon sales of finished products within six days ,we would ask businesses installment .
If we offer more favorable terms on their businesses ,or accelerated payment ,or our future cannot continue to grow revenue ,operating cash flow and operating results will be adversely affected ,hence the need to find alternative financing to support the demand for capital .
&rdquo  ;in other words  :Groupon new deal money to pay before the transaction ,it is essential to maintain revenue growth .By March 31st, Groupon owe businesses $290700000 .I saw an agreement ,the first round of installment payment 5 days to pay 33% ,if Groupon payment faster there will be problems .
Google Offer payment terms will be better, the business 4 days can obtain 80% payment .( Google cash are much larger ,can bear the risks .) if Groupon insist existing terms ,it must quickly get cash ,faster growth .
If unable to adhere to ,Google will take business .If the business in favor of Google terms ,Groupon may not have had the cash to pay before business, thereby starving to death .Groupon not only effectively to business loans ,it also go the other way .
In the Groupon to repay part of the business of the money before the ,business has been the subject of deception .And other lenders ,businessmen are short-term loans to Groupon ,abercrombie.Businesses not only bears Groupon inventory ,it also provides the original client .
The merchant received Groupon 30 days or 60 days before payment ,business is in trouble .Although the probability is small, but the Groupon businessmen know they take the Groupon crash risk .
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