[patio11]

1) You get cut a check for a substantial amount of money, potentially weeks or months in advance of having to provide the good/service which justifies the money.

2) Exposure to a new audience, who you could ideally:

a) convert into recurring customers

b) upsell into more lucrative services

c) use as social proof / infection vectors for recruiting more customers

3) Did I mention the cash flow thing? Seriously. I think that is huge. Groupon is in the business of calling people on the phone and promising to give them a lot of money. And they do it.

[poincare]

I never realized that the small businesses got their checks so early. I always assumed that Groupon would wait a while (30 days or so) before sending any money.

[kirpekar]

1) Incorrect. Merchant does not get paid until the groupon in redeemed by a customer. Merchant has to input the groupon ID/code into the system (online or mobile) and a check is mailed out.

3) Sorry what? Cash flow? I don't understand.