Groupon To Revise Revenue Sharing Model
Merchants finding Groupon's 50/50 revenue sharing model too steep for their budget could be in for a surprise. Rumours state that the Company is in the process of changing the revenue sharing ratio in its business model. A transition to a more flexible revenue sharing percentage could be part of Groupon's attempt at catering to a larger number of merchants, who often opt for other deal companies because they cannot afford the Company's revenue sharing ratio.
As per Pascal-Emmanuel Gobry from Business Insider, Groupon is already offering some businesses a 80/20 revenue sharing option. This means that Groupon is keeping only 20% of the sales of its coupons, instead of 50% as earlier. However, Groupon has not revealed information on any such revenue sharing deal yet.
Experts say that if the new revenue sharing ratio is for real, it will certainly make Groupon more attractive to retailers with lower profit margins and small businesses.