Groupon’s Growth Made Possible by Facebook

groupon now sports a lofty $1.5B valuation.

Techcrunch had a great analysis of Groupon last week, dissecting the site’s revenues, traffic and potential.

While there are several juicy nuggets in the post, this was what jumped out most to me:

“Groupon gets more of its traffic from Facebook than any other site, including Google”

Note that in the image above, Facebook referrals to Groupon blow everything else out of the water.

Two things:

1/ You can now bootstrap a massive business using Facebook. Makes it difficult to be a naysayer about Facebook’s ability to drive commerce (I continue think Facebook is going to be a monster company).

2/ There is a lot of platform risk right now for Groupon with it being so heavily reliant on Facebook. Hopefully it can build 1:1 relationships with customers vs. needing to rely on Facebook.



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