This point bears repeating: Groupon takes its 50% cut of every single deal sold—not just one—no matter how many you sell. For example, lets say you normally charge $100 for a private horseback riding lesson. At 50% off your normal rate, youd be offering your lessons for $50 each to Groupon buyers.

What percent does Groupon take?

50% Groupon takes 50% of the sales revenue as its service fee. The deal will generate $1,500 in revenue from 30 new customers, and of that amount $750 goes to the salon and $750 goes to Groupon. Once a deal is advertised, consumers who purchased the Groupon receive it regardless of how many were purchased.

How does Groupon pay its merchants?

Groupon works with merchants via a revenue share model. The company takes in all the money from customers buying a deal, then they distribute the merchants cut with scheduled payments throughout the life of a deal. Groupon popularized the concept of offering deals with a 50% off sales price.

How does Groupon create value?

Groupon keeps 50 percent of the revenues from each coupon deal. If you do the math, merchants need to gross margins well in excess of 50 percent for Groupon to work for them. The promotion is very steep, usually 50 percent or more.

How long does it take Groupon to pay?

ACH payments take up to five (5) business days to become available in the Merchant Bank Account after processing.

Can you use Groupon same day?

You need to read each deal, it will tell you if there is a waiting period. From looking recently it might be zero to four hours. So as long as you know in the morning what you want to do that day, you should be ok buying them same day, as long as the deal is still active. Also groupon has a three day return policy.

Can you return Groupons?

For Local Deals, customers can return any unredeemed Groupon for a refund of the amount paid within the first three days after purchase. After that, all sales are final unless stated otherwise in the Fine Print. After 30 days past delivery, items are non-refundable and all sales are final.

How long do Groupons last?

The truth is, technically, Groupons and most other daily deal vouchers can be redeemed up to five years after the purchase date, which means you can buy all the yoga, facial and frozen yogurt coupons your heart desires without the fear of wasting money.

Can you get a refund on expired Groupons?

Groupons may always be redeemed for at least the amount the customer paid for it—even after the promotional value has expired. For Groupon Getaways, if a customer is unable to book the stay that he or she wants, during the available dates and before the book-by date, well refund the unredeemed Getaways voucher.