How Does Groupon Make Money?

You already know that Groupon can help you get a great deal on local merchandise and services.  But what’s the deal that Groupon’s getting?  What’s in it for them?

How Groupon Makes Money

Basically, Groupon makes its money by acting as a middleman between local businesses and potential customers.  More specifically, Groupon is a promotional vehicle for companies looking to drum up business.

Here’s how it works: say that a company’s going through a slow business period, and they aren’t selling many of their products or services.  They don’t want to take a total loss, so they go to Groupon.  Groupon tells them that it will help them get business rolling by promoting and publicizing a special offer for that company, on the condition that Groupon gets a percentage of the revenue from any products sold via that offer.  The company agrees, hoping that the new customers that they get through Groupon publicizing their offer will become regulars, due to the company’s other merits (friendly staff, speedy service, quality of products, and so on).

Since transactions happen on Groupon’s end (i.e. you’re buying the vouchers from Groupon, not from any of the businesses that it’s promoting), Groupon keeps a percentage of what each deal is worth, and then pays each respective business the rest.  This percentage is usually around 50%. 

So, for example, if Groupon sells 100 vouchers for a $40 deluxe manicure and pedicure, then Groupon keeps about $20 from each sale, and thus ends up making about $2000 from the deal.  The other $2000 goes back to the salon that offered the deal.

Now you know a little bit about how Groupon makes their money!

Groupon Customer Service

How to Contact Groupon Customer Service by Phone

If you have any questions or concerns about a voucher you’d like to purchase, or have just purchased, you can contact Groupon by phone.

Their customer service is available at 1-877-788-7858 every Monday to Friday from 9 AM to 5 PM Central time.

Additionally, they can be reached at 1-888-375-5777.

For merchants on Groupon who have an issue, Groupon Merchant can be reached at 1-888-582-4354 from 8 AM to 7 PM Central time.

How to Contact Groupon Customer Service by Email

If your question or concern is not immediate, you can always send Groupon customer service an email. Contact them at any time by emailing and expect a reply within one business day.

Tips in Dealing with Groupon Customer Service

Nobody likes to deal with customer service, but these days it’s a fact of life. Here are a few tips and tricks to help you get what you want as quickly as possible.

Research Your Problem

Before calling or emailing, try typing your issue into a search engine and seeing what pops up. You probably aren’t the first person dealing with this issue, and there may be a simple solution online.

Gather Information

If you are going to call customer service, they may need to know information like your voucher number or other account information. Have all of this ready so that you don’t leave them waiting while you find it.

Be Concise

When telling customer service your question or concern, try to keep it short and sweet. Not everything is pertinent to the story; leave those parts out so they can easily understand what the issue is and be more prepared to help.

Escalate To Higher-Ups

If you aren’t getting the results you want, ask for a supervisor. Not all staff are able to deal with every problem, and that’s where the supervisor comes in – they have the authority to make decisions that regular staff cannot.

Be Persistent but Polite

If you’re angry, remember that Groupon’s customer service division is not the source of the problem. Let them be aware of this and always say “they” instead of “you” when speaking about the company. If you’re angry with the person on the other end, they’ll be less willing to help with your issue.