With the recent unsuccessful bid by Google to buy Groupon, there has been tons of speculation about how much money Groupon is making. Many sites have had widely different estimates of Groupon Revenues. Like this and this.
Unlike almost any other business in the world, Groupon basically publishes their revenues every day on their website. For every deal they have, they list the price of the deal and how many people have purchased it. Now I’m sure they have, or will have, additional revenue streams other than their daily deals, but for now those are probably immaterial in comparison. So, the simple way to estimate their revenues is to calculate them from what they publish publicly.
So, how much money does Groupon make? Well, calculating revenues from every city would be tough (though we’ll share that at some point when we are finished collecting it). For now we’ll give you a sampling and you can extrapolate from there. We decided to look at 3 of Groupons largests cities, Chicago (Groupon’s hometown), Washington DC (LivingSocial’s hometown), and Atlanta (Our hometown).
- October Revenues: $3,665,028 (from 99 deals)
- November Revenues: $6,755,909 (from 116 deals)
- This included a Nordstrom Rack deal that generated $1,809,950 )
- October Revenues: $1,370,092 (from 50 deals)
- November Revenues: $1,884,326 (from 83 deals)
Groupon Washington DC
- October Revenues: $3,223,160 (from 81 deals)
- November Revenues: $1,884,326 (from 95 deals)
- This included a Nordstrom Rack deal that generated $637,225 )
Now that is some serious dough. Now let’s do some projections. We will base our projections on data in these cities from the last 80 days. We’ll take the average daily revenues in each city and multiply that by 365 for annual revenues. Then we’ll make some assumptions about revenue growth.
DAILY revenues were $168,084.37 in Chicago, $84,786.81 in DC, and $53,280.09 in Atlanta. So, if you convert that to annual revenue, you get:
- Chicago – $61,350,795
- DC – $30,947,185
- Atlanta- $19,447,233
That’s a grand total of approximately $111 million in just 3 cities. Apply a 20% growth rate and you have $133 million in revenues next year. If they grow at that rate for 3 years, it would be almost $200m. Given the numbers in Chicago, it is not unreasonable to assume that they could generate $60m+ in every similarly sized city in a relatively short amount of time.
We’ll update this post soon with a more complete estimate of their current projected revenues. In the meantime, here’s what a detailed look at a $6.7m month of Groupon revenues in Chicago.
To get an idea of how many deals the Groupon sales team is selling per day, this page will show you every Groupon deal today.
- Groupon Revenues in Chicago – How Much Do They Make?
- List of Groupon Cities
- Groupon National Deals: List of All Groupon Online Deals Today