Turning $1 million into $4 billion!

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  • DateDoc
    Outside looking in.
    • Feb 2005
    • 14243

    #1

    Turning $1 million into $4 billion!

    The man who could make more than $4 billion from the initial public offering of Groupon Inc. is an 41-year-old, unassuming Midwesterner who got his start selling carpets on the street.

    Eric Lefkofsky, who seeded Groupon with its first $1 million in 2008, shot to business fame this week when the e-commerce company filed for one of the most hotly-anticipated IPOs of the year. Mr. Lefkofsky was listed as Groupon's largest shareholder, with 21% of the shares--three times as much as Andrew Mason, the CEO and public face of the company.

    If Groupon, which offers daily deals on goods and services to consumers in partnership with local merchants, is valued at the expected $20 billion or more, Mr. Lefkofsky's $1 million investment will be worth about $4 billion.

    http://finance.yahoo.com/career-work...on-coupons-wsj
  • ~Ray
    visit hardlinks.org
    • Jun 2003
    • 18361

    #2
    awesome!
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    Comment

    • Houdini
      Confirmed User
      • Dec 2001
      • 1651

      #3
      Now that's a return! Nice.

      Comment

      • djroof
        JuicyDevils.gr Owner
        • Jan 2004
        • 25505

        #4
        real biz!

        Comment

        • magicmike
          Confirmed User
          • Feb 2003
          • 2384

          #5
          Wow, thats pretty sweet.
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          • cooldude7
            Confirmed User
            • Nov 2009
            • 4306

            #6
            awesome., its real investment., sell it now., and again invest those 4 bil....

            Comment

            • JFK
              FUBAR the ORIGINATOR
              • Jan 2002
              • 67373

              #7
              NICE

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              • V_RocKs
                Damn Right I Kiss Ass!
                • Nov 2003
                • 32449

                #8
                Lucky he didn't give that money to facebook. They would haver diluted his shares in no time.

                Comment

                • Zorgman
                  Confirmed User
                  • Aug 2002
                  • 6103

                  #9
                  I seriously don't know how a site like Groupon can make that much money. Anyone explain where their income comes from?
                  ---

                  Comment

                  • Intrinsic
                    Confirmed User
                    • Jun 2008
                    • 1589

                    #10
                    Originally posted by Zorgman
                    I seriously don't know how a site like Groupon can make that much money. Anyone explain where their income comes from?
                    Groupon takes 50%

                    If a groupon says $5 for $10 of popcorn, Groupon gets $2.50 per sale

                    Comment

                    • ThatOtherGuy - BANNED FOR LIFE
                      So Fucking Banned
                      • Apr 2011
                      • 1241

                      #11
                      Dayum....

                      Comment

                      • Zorgman
                        Confirmed User
                        • Aug 2002
                        • 6103

                        #12
                        I see. thanks
                        ---

                        Comment

                        • teomaxxx
                          Confirmed User
                          • May 2003
                          • 2737

                          #13
                          Originally posted by Intrinsic
                          Groupon takes 50%

                          If a groupon says $5 for $10 of popcorn, Groupon gets $2.50 per sale
                          and if there is affiliate, the conditions for him are following:


                          Program Term: Groupon Standard Affiliate Program Terms (Mar 2011)

                          1. Action: Existing User
                          ActionCriteria Online Purchase by an existing user.
                          Action Referral Period 30 day(s)
                          Action Referral Occurrences Unlimited
                          Commission 2.00%
                          Locking Period - Standard Actions lock on the 10th of the month, unless extended.
                          Performance Incentive
                          For Total Sales Amount equal to or greater than $5,000.00 USD increase commission to 3.00% per action.
                          For Total Sales Amount equal to or greater than $10,000.00 USD increase commission to 4.00% per action.
                          For Total Sales Amount equal to or greater than $15,000.00 USD increase commission to 5.00% per action.

                          2. Action: New User
                          ActionCriteria Online Purchase by a new user.
                          Action Referral Period 30 day(s)
                          Action Referral Occurrences Unlimited
                          Commission 10.00%
                          Locking Period - Standard Actions lock on the 10th of the month, unless extended.
                          Performance Incentive
                          For Total Sales Amount equal to or greater than $1,500.00 USD increase commission to 11.00% per action.
                          For Total Sales Amount equal to or greater than $3,000.00 USD increase commission to 12.00% per action.
                          For Total Sales Amount equal to or greater than $4,500.00 USD increase commission to 13.00% per action.
                          For Total Sales Amount equal to or greater than $6,000.00 USD increase commission to 14.00% per action.
                          For Total Sales Amount equal to or greater than $7,500.00 USD increase commission to 15.00% per action.


                          its pitty, they have shitty geo-targeting - you have to pick your links and target them by yourself.geez we are in 2011, even shitty adult dating programs are using more advanced GEO-targetting then this multi-billion company.

                          Comment

                          • camperjohn64
                            Confirmed User
                            • Feb 2005
                            • 1531

                            #14
                            Originally posted by Intrinsic
                            Groupon takes 50%

                            If a groupon says $5 for $10 of popcorn, Groupon gets $2.50 per sale
                            I work for a company that is building a website for "Groupon for Restaurants", and they are noticing that the Groupon model is already getting old.

                            ebay: sell a $100 item for $100+, pay ebay $4. Get $96+ for your $100 item.
                            Groupon, sell a $100 item for $50, pay groupon $25. Get $25 for your $100 item.

                            From this, Groupon is raking it in compared to ebay, but sellers are saying "fuck that" to the value of posting deals.

                            Because the company I work for is trying to build a Groupon knock-off, they've been looking at the groupon data, and have noticed that if you look at the return customers, there are really very few. Meaning: "lots of hype, try it once, never come back!"
                            Last edited by camperjohn64; 06-06-2011, 11:32 PM.
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                            Comment

                            • SomeCreep
                              :glugglug
                              • Mar 2003
                              • 26118

                              #15
                              Originally posted by DateDoc
                              The man who could make more than $4 billion from the initial public offering of Groupon Inc. is an 41-year-old, unassuming Midwesterner who got his start selling carpets on the street.

                              Eric Lefkofsky, who seeded Groupon with its first $1 million in 2008, shot to business fame this week when the e-commerce company filed for one of the most hotly-anticipated IPOs of the year. Mr. Lefkofsky was listed as Groupon's largest shareholder, with 21% of the shares--three times as much as Andrew Mason, the CEO and public face of the company.

                              If Groupon, which offers daily deals on goods and services to consumers in partnership with local merchants, is valued at the expected $20 billion or more, Mr. Lefkofsky's $1 million investment will be worth about $4 billion.

                              http://finance.yahoo.com/career-work...on-coupons-wsj
                              Once one reads enough books on investing, one learns that these are exactly the types of stocks to avoid. I wouldn't touch that Groupon IPO with a ten foot pole. Simple intuition tells me, the company is not worth 20 billion dollars.

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                              Comment

                              • Axzar
                                Random Jackass
                                • Feb 2003
                                • 1837

                                #16
                                Originally posted by camperjohn64
                                I work for a company that is building a website for "Groupon for Restaurants", and they are noticing that the Groupon model is already getting old.


                                It's already ten years old..It's called Restaurant.com

                                Comment

                                • Oracle Porn
                                  Affiliate
                                  • Oct 2002
                                  • 24433

                                  #17
                                  Around here those sites are very popular, in the last year maybe 50-100 new sites popped up, all offering daily "deals", some of them are actually good but most are crap...from what I hear they take in %18-%23, and I'm talking about a site that got bought by groupon for a couple of mil.


                                  Comment

                                  • seeandsee
                                    Check SIG!
                                    • Mar 2006
                                    • 50945

                                    #18
                                    there is 20+ clones just in my small country, what is going in world who will know
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                                    • TheDA
                                      Confirmed User
                                      • May 2006
                                      • 4665

                                      #19
                                      Buy all accounts Lefkofsky was already quite a wealthy guy. I don't think it will change him too much.
                                      Sharleen Spiteri - 1989 - In The Ass

                                      Comment

                                      • V_RocKs
                                        Damn Right I Kiss Ass!
                                        • Nov 2003
                                        • 32449

                                        #20
                                        Groupon will be like AOL.... They will go IPO, buy up other people and then their original business will be crap... But they will own Universal, Saab, Sony, BMW and a host of other businesses where people actually come back.

                                        Comment

                                        • Mutt
                                          Too lazy to set a custom title
                                          • Sep 2002
                                          • 34431

                                          #21
                                          Originally posted by camperjohn64

                                          Because the company I work for is trying to build a Groupon knock-off, they've been looking at the groupon data, and have noticed that if you look at the return customers, there are really very few. Meaning: "lots of hype, try it once, never come back!"
                                          first, how does the company you work for have 'groupon data'? and if it's true that the % of return visitors is low from Groupon then Groupon and its clones will be a fad. One thing though, small businesses are like small webmasters, desperate for customers/traffic, so they'll keep buying crap Groupon customers the way desperate webmasters still are buying and paying far too much for traffic from brokers and ad networks. Because the only other option is to watch your new business fail, as a good % of new small businesses do.

                                          For many businesses Groupon is a can't lose marketing opportunity, if I own a bowling alley or a gym or a golf driving range and it's never filled on a weeknight I can do a Groupon offer for weeknights and even if I don't get one return customer it really didn't cost me anything.

                                          I think Groupon will be a great opportunity to short sell - it's a cute idea that already has a thousand imitators.
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                                          Comment

                                          • fatfoo
                                            ICQ:649699063
                                            • Mar 2003
                                            • 27763

                                            #22
                                            He got his start selling carpets on the street. That's interesting. Selling carpets on the street is probably cheaper than selling carpets inside a store. Groupon seems like a successful e-commerce company. Congratulations, Groupon.
                                            Send me an email: [email protected]

                                            Comment

                                            • camperjohn64
                                              Confirmed User
                                              • Feb 2005
                                              • 1531

                                              #23
                                              Originally posted by Mutt
                                              first, how does the company you work for have 'groupon data'? and if it's true that the % of ...
                                              Groupon published from their IPO.
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                                              Comment

                                              • georgeyw
                                                58008 53773
                                                • Jul 2005
                                                • 9865

                                                #24
                                                Look up Nathan Tinkler - 500k to nearly 1 billion now and only 37
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                                                • Adam_M
                                                  Confirmed User
                                                  • Mar 2006
                                                  • 3800

                                                  #25
                                                  If he had a million to drop into a start up he was already doing OK I'm sure!
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                                                  • The Heron
                                                    Confirmed User
                                                    • Apr 2001
                                                    • 4496

                                                    #26
                                                    Groupon is fucking dumb, anyone that values that at 20billion is even dumber

                                                    Comment

                                                    • Socks
                                                      Confirmed User
                                                      • May 2002
                                                      • 8475

                                                      #27
                                                      I know a guy who invested $400k in 1984 as startup capital for a company that later sold for $4B! He made out like a bandit.

                                                      Comment

                                                      • camperjohn64
                                                        Confirmed User
                                                        • Feb 2005
                                                        • 1531

                                                        #28
                                                        Groupon is only in 8 cities. At $7 billion IPO, do these investors really think the website is worth ~1 billion per city?!?!?
                                                        www.gimmiegirlproductions.com

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