[Hisoka]

I agree. It's just fundamentals. There's no such thing as a free lunch. No company can offer 50% coupons again and again, and be profitable, so the number of repeat merchants will go down, and Groupon will have to continue spending more to get more dumb merchants.

The customers are all looking for deals, they're not loyal. Plus more and more will get sick of the deals being targeted towards them.

In the end, Groupon is like a Ponzi scheme in that it will need to trick more new merchants to join in as old merchants drop out, and it will need to continue paying a premium to attract more consumers as the existing ones drop out. Compare that to companies like Amazon, and Google where ppl will never get tired of shopping online, or searching online.