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Updated on February 20, 2011

What is a Groupon?

A Groupon is a discount or deal credit purchased at is a website that offers different online coupons deals on a weekly or daily basis. The discounts available to you are based on where you live. When you sign up for an account, Groupon uses you zip code to find the closest city with Groupon coupon deals. Local and regional businesses offer deep discounts on regular rates for products and services and use Groupon as the vehicle to market them. You purchase a “Groupon” for that deal and pay through Groupon. For example, a massage parlor will offer a $60 minute massage for only $30 through for a limited period of time. You purchase and pre-pay for the offer and bring your receipt from Groupon to the massage parlor after you book your appointment. Groupon communicates your purchase to the local business as a record of your coupon.

How can you earn $10 for each referral?

1. Sign up for a Groupon account at and create your profile.
2. In your account, you will see an icon for “Refer a friend, get $10”. Use the referral link provided by Groupon to send to your friends and family or post on Facebook.
3. When you friends sign up for an account through your referral link, you will ear $10 credit on Groupon when they make a purchse.
4. Redeem you accumulated Groupon credits for a Groupon of your choice. You will not earn $10 cash, but credits to use and redeem through

How can they afford such deep discounts?

Groupon has such a large following that the marketing and customers gained through a Groupon help drive customers overall and help that business gain local market share. Even through some profits per individual Groupon customer maybe lower, that customer may return later as a repeat customer or bring friends with them who have to pay regular prices. Also, if a customer does not redeem the Groupon pre-paid credit then the business keeps the funds. Check the site daily, as offers change often and are only available for a limited time.

Some businesses have driven so much business to their stores that it has compromised customer service levels due to overwhelming demand. Sales limits are set, listen to this report below to hear about how Groupon worked for a Nail business and the side effects of the almost unlimited promotion.

Local Business Discusses the Success of Groupon


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