How much is Groupon advertising

 Groupon's advertising costs vary depending on the type of deal and product you're offering. Here are the key points to consider:

- *No upfront costs*: Groupon doesn't charge any upfront fees for advertising. Instead, they take a percentage of the revenue earned from each sale.

- *Commission-based model*: Groupon takes around 50% of the profit from each sale, although this can vary depending on the agreement.

- *Deal requirements*: Groupon typically demands a discount of at least 50% off the regular price for featured deals.

- *Merchant fees*: Businesses also need to consider merchant fees, which can vary depending on the volume of sales and type of business.

Some examples of Groupon's advertising costs include ¹ ² ³:

- *$7 per sale loss*: For a business with an 18.2% profit margin, selling a $12 product for $6 through Groupon could result in a $7 loss per sale, considering the cost of goods sold and Groupon's commission.

- *50% commission*: If a business sells a $100 Groupon for $50, Groupon would take $25, leaving the business with $25 to cover costs and generate profit.

To make Groupon advertising profitable, businesses need to carefully calculate their costs, profit margins, and customer retention rates. It's essential to consider the long-term sustainability of using Groupon as part of your marketing strategy ⁴.