Posts Tagged ‘startups’

Back online and “Groupon, told you so”

May 5, 2012

After a pretty long hiatus I promised myself to make time to get back again to collecting and curating great articles in brand and marketing strategy and color them with my own take. So what better way to (re) start than by putting a bit more spotlight on the meteoric rise and what looks like a meteoric crash of the once touted:

We have lift off.

“the fastest growing company in history”.

As early as 2011’s edition of SXSW, everybody was talking about Groupon Envy; some folks in the industry commented at the time that a social media bubble was forming in the valley and the only company with a clear revenue model and a bright future was Groupon.

The chain of events was fast and tumultuous as if it was scripted: Becomes talk of the town, goes from hundreds to more than 8,000 employees in less than 2 years, hundreds of competitors swarm the daily deal market, tries to innovate with better targeting and real-time deals, launches IPO and… in a matter of months, the stock price sinks to half of its initial offering, and everybody realizes that their product has essentially become irrelevant.

Some had predicted Groupon’s dim future, but the voices are getting much louder now, and Groupon’s sales force are starting an exodus. Call it the canary in the mine. From Venture Beat:

Here’s the deal: I’m outta here.

According to a former salesperson at Groupon, top sales talent is leaving the company as its troubles mount. As of this morning, Groupon reached another all time low, trading on the NASDAQ at $10, half off its $20 IPO price. In just the month of April, the stock lost 42% of its value.

Sales people are leaving for a number of reasons, but one of the biggest is that volumes on each deal are declining. This is something I’ve noticed lately. It’s not uncommon for a deal in the San Francisco area to sell fewer than 100 units.

Full article here: http://venturebeat.com/2012/05/03/top-sales-talent-leaving-groupon-as-its-woes-mount/

Read it and weep. Or not.

J.

Photo credits: NASA, Moon Angel