IRCE: Does a Group-Buying Site Make Sense for Your Business?

McKeon noted that this type of growth isn't natural. In fact, not only is it unnatural, teaming with a daily-deal site such as Groupon might not make sense for your business for the following reasons:

• daily-deal sites tend to work best for restaurants, massages, spas and tourist sites; and
• more women buy Groupon deals than men.

There's another obstacle that can block you from using group-buying sites: Up to 85 percent of merchants are denied by group-buying sites. Most group-buying sites want half of the revenue generated from the offer, potentially disrupting a company's cash flow. Your company must be willing to sell its products at a very steep discount.