| The ~$500M number doesn’t consider that 50% of that goes to the merchant leaving ~$250M. After that they have a "team of more than 4,500 employees includes LivingSocial professionals in every city where we offer deals"[1], 19 offices[2] plus another office/shop thing called 918F Street[3] and they have a 5 month training program[4] which adds costs to their hosting, software design etc. Once they've paid out for its 4,500 employees, offices, hosting, software design, training programme, legal costs etc they also have significant marketing costs as well. Although companies like Ampush have helped them to lower it recently[5] [1] http://corporate.livingsocial.com/bythenumbers [2] http://corporate.livingsocial.com/ourcompany [3] http://www.918fstreet.com [4] http://hungryacademy.com/ [5] http://ampush.com/ampush-lowers-livingsocials-cpa-costs-on-f... |