Andrew Mason figured out how to inject hysteria into the process of bargain hunting on the Web. The result is an overnight success story called Groupon.
Groupon, a name that blends “group” and “coupon,” presents an online audience with deep discounts on a product or service.
Unlike so many dot-com rockets, Groupon is a real business. Occupying 85,000 square feet inside a rehabbed eight-story former Montgomery Ward warehouse in Chicago’s River North neighborhood, the company is on track to pass $500 million in revenue this year, according to a report Morgan Stanley put together to win some underwriting business.
Mason’s model is transforming the way companies–especially smaller ones with limited marketing budgets–snag sales. In May Groupon sold 6,561 tickets to a King Tut exhibit in New York’s Times Square for $18 apiece, little more than half the list price.
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